The future of digital identity

Increasing digitalization means that people need to identify and verify themselves online more often. For organizations, it is crucial not only to facilitate digital identity solutions, but also to safeguard them properly. This gives consumers more control over their digital personal data.

We need to identify ourselves for many different initiatives: opening a bank account, voting, making online purchases and even using certain public services. The number of identification moments is increasing every year.

Traditionally, people identify themselves using government-issued documents such as a passport, identity card or driving license. As more services and products move online, it becomes increasingly important that people can also identify themselves digitally.

Organizations therefore need to prepare for this transition and develop the right solutions to make secure digital identification possible.

What is digital identity?

A digital identity is an electronic form of identification that helps people verify themselves online and gain access to different services. Digital identity is not limited to official government documents such as passports and driving licenses. It can also include bank cards, diplomas, environmental passes and loyalty programs. More and more of these are connected to a person’s digital identity.

In the Netherlands, DigiD is currently used as an electronic identity for public online services. However, digital identity is developing quickly and will increasingly involve broader, more flexible solutions.

Why companies need to prepare

Consumers expect digital services to be fast, secure and easy to use. At the same time, privacy regulations require organizations to handle personal data carefully. Digital identity solutions can help meet both expectations.

A strong digital identity strategy can improve onboarding, reduce fraud, simplify verification and increase trust between organizations and customers.

More control for consumers

Modern digital identity solutions give users more control over which data they share and with whom. Instead of sending copies of documents to every organization, users can share verified information selectively and securely.

More trust through transparency

Organizations need to handle customer data differently and be more transparent about it. One way to build trust is to give consumers the ability to withdraw information or share only the information that is relevant in a specific situation.

PiM is one example of how organizations can handle digital identity better while giving consumers more control.

In collaboration with KPN, Elements developed PiM, a mobile app that gives users control over their digital identity again. PiM stands for Personal Identity Manager and is an identity wallet that gives both users and organizations control and insight into the online use of personal data.

By validating personal data against different sources, the data remains correct. Biometric login and encryption techniques help protect personal data against fraud. Organizations only access the data they need and can comply with current regulations through PiM.

PiM continues to develop and aims to make passwords unnecessary, allowing users to identify themselves both online and physically with the app.

Another example is a car insurer that allows customers to share vehicle data in exchange for a lower premium. With one tap, users can share that data and just as easily withdraw it again.

Digital identity is here to stay

Whichever way you look at it, digital identity is here to stay and will become even more important in the coming years. Consumers are gradually becoming used to the convenience and security it offers.

By responding properly to developments around digital identity, organizations can increase consumer trust and customer engagement. This reduces the risk of revenue loss and brand damage and helps build a competitive advantage.

Applications such as PiM support both consumers and organizations in this transition. Do you want to take the next step in helping your customers identify and verify their data? Contact us for a no-obligation appointment.

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