What the biggest issues and trends in the identity space will be throughout 2019?
In 2019 we expect to see companies continue to obsess about the digital customer journey. This trend, led by innovative fintechs, has now filtered to all types of business who want to make customer onboarding and ongoing interactions as smooth as possible whilst still meeting identity verification and authentication requirements. Look out for lots of shouting between marketers, UX and compliance stakeholders as companies seek to get the balance right between compliance and convenience.
Secondly, 2019 is the year of preparing for further Know Your Customer regulations. AMLD 5 in finance will bring more firms into regulation and lower the threshold at which KYC must be performed. New licencing conditions in online gambling will see more online gamblers go through initial and enhanced due diligence. PSD2 will see the need for retailers, PSPs and banks to ensure that customer identity is authenticated for online transactions. Watch out for firms that implement the regs, but see customer abandonment and churn because they aren’t obsessing about the customer experience.
Thirdly, in today’s age of data breach, traditional identity technologies such as database checks or ID document validation in isolation are no longer the defense they used to be. As such we will see this year a trend where companies use multiple identity technologies to stay one step ahead of the fraudsters. Blending technology such as geo-location or digital footprint analysis together with traditional identity tech will be used to layer new defenses against fraud. The key focus in this coming year will be stitching those technologies together in such a way that 2+2=6.
For more information on AMLD 5 download our compliance guide HERE