Experts Discuss Identity Verification Trends in Financial Services

Jivana Y Brokolyn
  • The financial services industry is central to the evolution in identity verification technology.
  • Demand for convenient digital payments and transfers without compromising security is driving innovation.
  • In the recent event, “Cutting-Edge Identity Verification Is Transforming Financial Services,” experts discuss balancing consumer choice with fighting fraud.

In today’s world, our identity is linked to everything we do, even brushing our teeth. “Like this morning, I was brushing my teeth and this toothbrush has AI built into it. It actually recognizes who is brushing and adjusts to their pressure points — authenticating the user every second,” commented Sudan Sethuramalingam, head of Twitter service tech, while moderating our recent digital event. 

And while consumer goods, social media, and the sharing economy are all driving advancements in identity verification, many believe that financial institutions are the real trailblazers behind this evolution. 

From the early days of digital banking to today’s robust fintech landscape, the financial services sector has continuously created safer and more convenient ways for people to lend, move, and access their money. This motivation still remains, now with factors like trust, inclusivity, and user experience at the top of mind.

The event, “Cutting-Edge Identity Verification Is Transforming Financial Services,” sponsored by AU10TIX, covered the latest developments in the convergence of identity and payments. Speakers included Ravi Devesetti, global chief technology officer, CIS, Experian; Linda Duncombe, executive vice president and chief marketing product and digital officer, City National Bank; and Carey O’Connor Kolaja, CEO, AU10TIX. 

Two major trends were prominent during the conversation: contextual identity and consumer choice.  

“I think we have this really unique opportunity to change the way in which we verify,” Kolaja said.  “Tokenizing data — allowing it to be used in interesting and safe ways without sharing — is definitely at the forefront. And I think it’s going to take a lot of education on all of our behalf to have the average consumer understand what it is and why [context] matters.” 

During the event, the panelists also discussed the tension of preventing fraud, protecting money and meeting customer expectations, and the importance of collaboration and transparency between organizations and individuals.  

This is where the second major trend — consumer choice — comes into play. 

“I would say the client base is far more vocal now,” Duncombe said. “And as they’ve become more highly engaged in our digital platforms, especially around payments and transfers, we need to get, I think as an industry, very fast in understanding what that means for different behavior and our overall value proposition.” 

Devesetti added that consent — or co-creation, according to Duncombe — between consumers and financial institutions is very powerful. 

“Consumers love when they have control,” Devesetti said. “Consent is very critical, and [Experian] built something called a permission hub. Consumers can manage [their] experience — how they’re sharing and how they’re working with banking or payments. They have those choices.”  

Watch the full event below to learn more about the growing importance of identity management.

This post was created by Insider Studios with AU10TIX.

https://www.businessinsider.com/sc/identity-verification-and-financial-services-trends-2022-3

Next Post

How the financial services industry can impact retirement

Investment management firms are well positioned to influence the outlook for aging societies — and not only by helping them save and invest. Retirement investments are a form of economic energy, and that energy can be sent coursing into companies and sectors whose products and services will help meet the […]

Subscribe US Now