Wow! We’re more than halfway through the year, with some exciting developments in digital identity in the last couple of months. In this newsletter, we’re going to cover some of those developments, including outlining COVID-19’s impact on digital identity, changes in the market landscape, and some compliance updates.
We’ve also just launched our blog, with some posts that go more into depth about the space as a whole and digital identity. Check it out for the latest in blockchain and digital identity!
COVID-19 Impact on Digital Identity
- It is clear that COVID-19 has caused a rapid shift in work environments. One unforeseen consequence of this is the need for stronger security and identity management for remote workers. This has led to an influx of cyberattacks as well as phishing and account takeover attempts on the user side. Companies that invested in better identity and access management before the pandemic are now able to transition smoothly to remote working.
- WSJ has highlighted the danger of rushing security measures for remote working at the cost of more fraud. Read more here.
- COVID-19 has changed retail banking forever, even when we are able to go to physical branches again. Some consumers have decided to switch banks simply because virtual onboarding processes were difficult or even impossible. Nearly 39% of consumers in The Harris Poll’s study were unsatisfied with their online banking experience. They were asked to fundamentally change their interactions with the bank, including time-consuming login procedures. This lost their customers, consumer trust, and revenue.
- To see other findings of this study, see here.
Major changes in market landscape
- Trust is a rising issue in digital identity, especially when it comes to consumers deciding where to take their business. This trust needs to be bidirectional, as shown in a report by Deloitte. In the past, businesses authenticated individuals; however, individuals also need to verify the business. Their data needs to be solely in their possession, which will make consumers trust that their data won’t get leaked in a wide-scale attack.
- To see the full report and discussion, see here.
- A digital identity market report has been released, forecasting the next 5-10 years of digital identity developments. Among the key findings are IAM infrastructure and services becoming a $42.3B USD globally opportunity by 2025 and that digital identity will be the single biggest gating factor to the adoption of enterprise IoT. The five biggest verticals digital identity is expected to be adopted are Financial Services, Telecom and IT, Insurance, Government/Public Sector, and Healthcare Services.
- Further discussion of the report can be found here.
- We’re also excited to announce a new fundraising round, led by Draper Associates and other VC’s. Our total to date from angel investors, pre-seed, and VC’s is $3.2 million. We hope to use this funding to advance our vision of sharified identity, a shared and verified identity. For a more detailed explanation of our technology, contact us for a meeting or check out our website!
- For the press release, see here.
- It’s no secret that KYC and compliance regulations for banks and financial services make it costly and time consuming to verify and authenticate customers. These regulations are only getting more strict, which requires better IAM and security measures. One regulation that recently entered its enforcement period is the California Consumer Privacy Act (CCPA). This is essentially California’s version of GDPR in Europe. Many companies aren’t ready for this enforcement period; here’s a guide to what you need to know.
- Further than the CCPA, there is also a new regulation being proposed in California called the California Privacy Rights Act (CPRA). It will be on the November 3, 2020 ballot and pushes for an even more stringent privacy bill. Whether or not it passes, KYC/AML regulations are becoming stricter every year. If companies want to stay efficient, they need to take precautions now to implement stronger IAM. It will save money, customers, and consumer trust in the long run.
To read more about the CPRA, see here.