Индекс цифровой идентичности Idnow 2023: исследование будущего цифровой идентичности в Германии

Digital identity: its time is now - verdict Digital-конференции

How is Identity Verification used to extend Digital Trust?

The basics of digital identity can easily be applied to identity verification, particularly at the account opening stage when bridging the physical/digital gap is especially important. What’s more, 84% of consumers think it’s important to accurately verify their identity online when opening a financial services account, with 60% saying the same for opening a healthcare account and 32% agreeing this is required when opening a gaming /gambling account.

In this scenario, organisations can compare a user’s selfie to a photo taken of a government-issued ID, like a driving licence or passport. Using biometric technology, this process can deliver a definitive “match” or “no match” decision within seconds. This adds a critical layer of Face-Match technology that protects against stolen IDs and allows organisations to accurately verify whether the ID document truly belongs to the person making the transaction, thus creating a digital identity. In addition, liveness detection can be layered to ensure the person holding the ID is physically present during the transaction. This protects organisations from advanced spoofing attacks by ensuring the images captured during onboarding are from a real human and not a spoofing artefact.

Establishing this level of trust with an organisation is highly valued by consumers. Internal research showed that adults were more likely to engage with certain organisations if they have robust identity verification measures in place. For example, 57% would be more likely to engage with a financial services organisation online while 51% would be more likely to engage with online healthcare services.

Increasing identification mandates create a new era.

The recent conversation around Twitter has made verifying identities a hot topic. Adding identity verification could solve a number of problems for social media platforms, but for this to take off in 2023, it should be something that users can opt into. Ensuring a balanced process would mean that prominent personalities can create confidence through verification while retaining space for anonymity for those who need it, such as whistleblowers or political dissidents.

While allowing anonymity in some specific cases has benefits, authenticating digital IDs more broadly would improve the transparency around social media ads—who is buying them and why—while also reducing fake accounts. Similarly, account lockout is one of the many annoyances faced by social media users. Identity verification can accelerate account recovery, so people are waiting minutes, not days or weeks, to get back in.

Hotels and home-sharing companies are increasingly mandating owner and renter verification due to security concerns. Similarly, I just ran into a required identity verification step when I rented a storage locker. In addition, we are seeing a renewed focus on children’s online safety in state capitals around the globe, with mandates for adult content purveyors to verify age before allowing access. How these requirements shake out, what types of services are affected and the consequences for failure will have big ramifications—but it’s clear that we’re seeing a large increase in digital identity verification requirements in a number of sectors that hadn’t required it before.

Digital ID in the Finance Sector — 27th October 2022

Digital ID in the Finance Sector is the latest webinar in our Digital ID Event Series for 2022 happening at 11:00 UK on the 27th October 2022 where you can hear from Finance Sector luminaries Marie Austenaa — Head of Digital Identity at VISA, Phillip Mind — Director of Digital Technology & Innovation at UK Finance, Ryan Gosling — Commercial Director at Callsign and Neil Downing — VP of Products at TMT Analysis discuss and debate the critical role of Digital ID in their sector and how industry and government can best work together to develop the trusted, secure and efficient digital identity ecosystem that a thriving digital economy demands. We will look at the role of the Finance Sector in the UK Digital ID Ecosystem, discuss the changes in the Beta version of the UK Digital Identity & Attributes Trust Framework, what needs to happen to ensure public trust in the ecosystem and — given the global reach of our panel guest’s businesses — what the UK might learn from other jurisdictions around the world.

Digital services: Reality or wishful thinking?

According to the survey, the vast majority of Germans are annoyed by the long waiting times associated with manual, in-person processes and applications (59%). Inflexible appointments and limited opening hours (58%) are also perceived as sources of frustration. However, despite these opinions, the adoption of digital methods is still not as high as one would expect. 

For example, although two-thirds of Germans would like to use more e-Government services, only 9% actually do so. Half of the population would also like to view their health records digitally or submit their sick notes online. Although both services are available, only 16% of the population make use of them. 

As there seems to be a general preference for digitized processes in most areas of everyday life, it is surprising that so many Germans continue to prefer paper-based employment and rental contracts. In fact, 40% of respondents said that they would not digitally sign such contracts. Little wonder then that qualified electronic signatures (QES) have only been used by 6% of Germans. 

AI is a catalyst when introduced safely.

As AI is increasingly used alongside biometrics and other technologies that enable digital identity verification, regulations around bias and fairness must be robust. Despite the boost it can give the user experience, governments must prioritize safety, security and equality. But it’s also up to businesses using AI to know what their rejection rates are by different user demographics so they can uncover biases in their own algorithms.

Practically, there is a lot of infrastructure that comes with integrating AI. You can’t do so without the requisite data, technology and people. The process takes time and investment, and for those businesses without unlimited resources that want to offer digital identity verification, it’s important that governments provide guidelines to ensure it remains fair and transparent.

The future of digital identity in Germany.

Our Digital Identity Index 2023 shows that there is still room for improvement in the use of digital services in Germany. Users still often opt for analog processes rather than digital due to security and safety concerns, or often because they’re unaware of the existence of digital services. The Index also shows that the population is open to non-governmental remote identification solutions, such as VideoIdent, as enablers for digital services. In fact, they often prefer these solutions to the state-provided online ID card function (eID) – even ten years after its introduction. 

In view of the upcoming changes and opportunities that identity wallets will bring throughout the EU, it is incredibly important to listen to the requirements and preferences of users. In Germany, policymakers and industry leaders will need to balance security with user experience to create a future-proof digital identity ecosystem that can be reused for verification and authentication in everyday digital services.  

The Index has demonstrated that the desire for German, or at least European identity wallets remains. After all, the more solutions are considered secure in the eyes of the German population, the more likely they are to be used in a wide variety of use cases throughout different sectors. 

By

Dr. Heinrich Grave Senior Vice President Digital Identity Connect with Heinrich on LinkedIn

*Methodology 

The survey is based on online interviews with members of the YouGov Panel Germany. A total of 2,040 people were surveyed in the period from December 6 to 8, 2022. The results were weighted and are representative of the population aged 18 and over in Germany. 

Digital ID and Distributed Ledger Technologies: Opportunities and Challenges — 3rd February 2022

In collaboration with techUK’s Blockchain Reimagined campaign. Join us as we unpack how distributed ledger and digital identity technology can work together, the potential opportunities these technologies can provide for government, businesses and users, as well as the significant challenges that must be addressed for the benefits of these combined technologies to be recognised.
Speakers: Shiv Aggarwal, CEO, Earth ID and European Lead, Government Blockchain Association; Genevieve Leveille, Principal Founder and CEO, AgriLedger; Aman Kohli, CTO, DXC Technology; Paco Garcia, CTO, Yoti

Identity Wallets: Germans prefer to trust national providers with their data.

From the German population’s point of view, the main arguments against the EU’s plan for identity wallets, itself a core element of the eIDAS 2.0 regulation, is the lack of data security against identity misuse or forgery (44%), targeted hacker attacks (43%), and the possible loss or defect of the smartphone (41%). Around one in three Germans is also concerned about surveillance, either from companies or the state. These concerns are then reflected in the selection criteria for an identity wallet: Security (55%), data protection (46%), and user-friendliness (36%) are most important to Germans, when choosing an identity wallet.  

According to the survey, respondents are also skeptical of companies outside the EU. Only 4% of respondents trust non-German companies to process their data securely and provide a user-friendly experience, compared to 28% who trust companies based in Germany to be able to strike that balance. Another 26% believe only German government institutions or agencies could fulfill these criteria in an identity wallet. 

How does continuous Identity Proofing help secure finances and transactions?

This tactic doesn’t need to be on sign-up only, though. The method can be used to continually verify users and provide even more identity assurance, which is particularly important in higher-risk scenarios like online banking. By requesting the user to take a fresh selfie every time they log in to their online account or app, this generates a new biometric template. This can then be compared to the original biometric information captured during onboarding to unlock the user’s digital identity in seconds for continuous authentication.

The government’s plan to introduce digital identities is a positive step in addressing identity fraud and based on the data when utilised for identity verification, digital identities can even provide a competitive advantage. To ensure that customers and transactions are always protected, organisations should harness the power of this technology, tapping into the benefits to create an ecosystem of trust that stops identity fraudsters in their tracks – something particularly important in an era of continual data breaches.

IDcentral helps you automate information extraction from customer documents or pictures of documents so you can quickly verify these on the go. The Identity Verification service we provide is designed to extract, classify, and validate documents against government databases with high precision, and this data is fed into onboarding applications. It also recognizes low-quality images, rotated images, and any format, and delivers high accuracy without errors.

 IDcentral provides industry-leading solutions in digital onboarding through:

  • Online document verification technology for instant verification
  • Allows customers to submit pictures of documents
  • Intelligent extraction of relevant details without manual intervention
  • Capture related customer information from authorized sources
  • Augment customer data from other sources to increase accuracy
  • Enabling self-serve verification processes
  • Enhancing customer satisfaction
  • Securing onboarding processes from identity theft

How is Digital Identity used to inspire customer confidence?

As exemplified by our in-house experts at IDcentral, the new mode of online transactions and businesses have constantly faced problems arising from simpler sources like customer churn caused by complex onboarding procedures to more serious issues like synthetic identity fraud and compliance challenges.

Whether it’s ID cards, health cards, passports or driving licences, we’ve long relied on various forms of physical ID to prove our identity. But as we move to a digital society, organisations need to find ways to verify customers’ identities remotely – and this is where the problem arises. In an online world, how can the person and the business on both sides of the interaction know that who they are dealing with is a genuine and trusted party?

Digital identities help to bridge this gap. Essentially, a digital identity is a collection of personal information about you that exists online and can be connected to your actual identity. It’s a reusable, electronic proof of identity issued by a trusted authority with a known level of assurance. As it’s cryptographically secured, it allows individuals to have greater privacy and data protection than a traditional form of identification.

Digital ID in the Finance Sector — 9th March 2023

Join us to hear Jennifer Jiang at JP Morgan Chase, Seema Khinda Johnson from Nuggets, Lewis Cannon from Oliver Wyman and the Vice-Chair of techUK’s Digital ID Working Group and Market Director at OneID, Adrian Field discuss and debate the critical role of Digital ID in their sector and how industry and government can best work together to develop the trusted, secure and efficient digital identity ecosystem that a thriving digital economy demands. We will look at the potential role of the Finance Sector in the development the UK Digital ID Ecosystem, what needs to happen to ensure public trust in the ecosystem and — given the global reach of our panel guest’s businesses — what the UK might learn from other jurisdictions around the world. If digital identity in the finance sector is your business, this is a must-watch.

Digital Identity in the Travel and Tourism Sector — 24 March 2022

Join us as we discuss how digital identity technologies can transform travel and tourism and enable these sectors to bounce back from the impact of the pandemic. Our panel will explore how digital identity is and can be used in the travel sector, the opportunities and challenges in the UK and beyond, and what more needs to be done to realise the full benefits of digital identity for travel and tourism. Speakers include Andrew Bud, CEO, iProov; Gillian Jones, Senior Business Development Manager, Condatis, and DIF Travel & Hospitality Special Interest Group Co-Chair; and Jim Robinson, Managing Director, Pegasus Aviation Advisors.

Germans want more digital services but ignorance and security concerns remain.

Digital services were already gradually growing in popularity and usage before the COVID-19 pandemic. But since then, the demand for more digital processes has rapidly increased across the board – in finance and banking, in the travel and hospitality sectors, and in healthcare and insurance, to name just a few. In Germany, the private sector as well as the government – at local and national level – have therefore been working on the digitization of everyday processes for years.

The same development can be observed at the EU level. In March 2021, the European Commission presented a vision for the digital transformation in Europe by 2030. A core element of this so-called “Digital Decade” is the creation of digital identities for EU citizens. To make this happen, the EU Commission is working on legislation, the Electronic IDentification, Authentication and Trust Services (eIDAS) which is intended to enable a simple and uniform identification framework for all EU citizens via an identity wallet.  

Even though the demand for digital services in Germany is growing, security concerns about the storage of personal data remain high and often hinder further digitization efforts. To find out more about the future of digital identity in Germany, we created the Digital Identity Index 2023, which examines: 

  • Areas in which Germans already rely on digital identification processes 
  • Sectors in which they would like to employ digital services in the future 
  • Views on the EU’s plans for the identity wallet 
  • Important factors on the use and adoption of identity wallets 

For the Index, 2,040 adults were surveyed as part of a representative poll with market research company YouGov.* 

Fraud Prevention in Digital ID — 20th July 2023

techUK recently hosted a webinar on fraud prevention in digital ID with a particular focus on Project Shield. The event was opened by Katherine Holden, the Head of Digital ID, Data Analytics & AI at techUK, who welcomed the speakers Chris Lewis, Head of Solutions at Synectics Solutions, Gareth Narinesingh, Head of Digital Identity at Mitek Systems, and John Abbot, Chief Commercial Officer at Yoti. The event featured an in-depth discussion about Project Shield, a groundbreaking initiative spearheaded by Mitek Systems, Yoti, and Synectics Solutions to tackle digital identity fraud. The project’s overarching goal is to create a robust defence mechanism against identity fraud by establishing a collaborative ecosystem of certified identity providers that share intelligence on potential threats.

Popularity of different remote identity verification methods.

While QES is still considered niche, many Germans (63%) have already used a digital or remote identity verification solution at least once. The most common identification methods are in-person identification in post offices (40%), the VideoIdent method via a video chat with an agent (38%), and fully automated identification solutions with a photo/selfie (14%). The latter, although quicker and more convenient, is likely less widespread because of regulatory restrictions, as automated identification processes are not approved for all use cases in Germany. For example, it can be used for car rentals to verify driver’s licenses, but not for AML use cases, such as opening a bank account. 

Interestingly, German users seem to prefer private-sector solutions, such as VideoIdent to the state-issued eID, with only 8% having ever used the eID function of the German ID card.  

The 2023 Index also shows that many citizens have already used remote identity verification processes several times, e.g., 16% have utilized a VideoIdent process multiple times, 18% have gone through the identification in a post office branch more than once. The usage indicates that there is a clear need in the German market for digital identity solutions that can be reused for verification and authentication. Yet only 1% of the population have ever used a digital identity wallet which enables you to reuse your digital identity. 

In the U.S., private companies will lead the charge while states continue their slow mobile driver’s license rollout.

In the U.S., states are the source of the most commonly used identity documents. Each state has its own identity infrastructure of birth records, marriage certificates, death records and driver’s licenses, which are the most ubiquitous form of ID in the U.S. While some states like Colorado, Maryland and Arizona offer mobile driver’s licenses (mDLs) today, other states are going to operate on their own timelines, and there’s no overall mandate to increase digital identity penetration and usage as there is in Europe.

As a result, it’s doubtful the U.S. will be in the same place as Europe come 2030. In that vacuum, we will likely see an increasing interest in the private sector to bring digital identities mainstream, with comprehensive digital identity systems being rolled out from Airside, Authentify, CLEAR, Apple and Mastercard, aiming to simplify identity sharing for end users while ensuring businesses can protect themselves from fraud and remain compliant to specific KYC and AML regulations.

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