Digital identity: Global necessity, with no universal solution

New York, NY, 26 October 2016—As the world becomes increasingly interconnected through technology, digital identity solutions will not be met with a “one-size-fits-all” approach, according to a Deloitte Global report. “Picture perfect: A blueprint for digital identity,” calls on financial institutions to take the lead in creating robust digital identity systems.

Today’s identity systems are slowing innovation in FinTech. Drawing on research from Deloitte and the World Economic Forum, “Picture perfect” cites the maturity of the financial services industry, as well as access to regulatory and technological resources as key reasons for the sector to take the lead in closing the gaps with digital identity.

“Digital identity offers financial institutions new and improved capabilities, including tailored risk profiles, streamlined global implementation and a better gauge of overall risk exposure. With input from policy makers and government leaders, the private sector has a unique opportunity to take the lead on developing new digital identity systems, ultimately making them more sustainable and widely adopted,” said Bob Contri, Global Financial Services Industry leader, Deloitte Global.

While “Picture Perfect” acknowledges that there will be no singular, global solution, and no one group that owns developing that solution, the report does provide a high-level plan for digital identity systems. The report lays out six essential steps:

1. Know who you’re trying to serve.
2. Understand the needs you’re trying to fulfill.
   
3. Decide who must be involved to bring the system to fruition.
   
4. Figure out a way to work together—be it as a private partnership, a consortium, a utility or some other model.
   
5. Describe what the solution must be able to do, and translate that into technical requirements that a system developer can follow.
   
6. Assemble the solution, test and launch.

“We need strong, convenient and secure methods for people to prove their identities, and the systems that exist today aren’t up to the task,” said Rob Galaski, partner with Deloitte Canada. “This creates inconvenience and risk for users, and also places a huge constraint on the development of digital-based services. By following these six essential steps, networks can build a solid foundation for their digital identity systems.”

As used in this press release, “Deloitte” refers only to the Deloitte Touche Tohmatsu Limited member firms.

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