Understanding the value of digital identity to you and the consumer
By 2021, consumers worldwide will make a forecasted 876 billion digital payments[1]. Over the next three years, digital payments will grow globally at a rate of 12.7% a year. In some markets, uptake of digital payment methods will grow at 20% or more. This change, which is just beginning, will have profound implications for retailers, financial-services providers and even companies that sell B2B.
The move to digital payments is not the only driver of change. More and more people are choosing digital-only banks and bank accounts. A study by Deloitte found that 73% of consumers already bank online and that 59% use mobile banking apps[2]. What’s more, 16% of consumers say they plan to switch to digital-only banking within the next five years[3].
The customer of the near future will live, work and shop in a hyper-connected world. Which services he or she chooses to use, will depend on how well those services fit into this new, accelerated digital economy. Does your bank integrate with your favourite retailers, allowing one-click payment? Can you use money-transfer services to move digital cash instantly to a friend’s e-wallet?
If the answer is no, the next question will inevitably be, ‘Well, where can I find an alternative service that does support seamless connectivity to the services I want to use?’ The key to ensuring that you don’t end up on the wrong end of this question, is effective management of digital identity.
Securely authenticating and authorising customers as they pass from one service to the next, or use inter-connected services can be difficult, cumbersome and frustrating. Anyone who has ever had to enter a PIN and then a passphrase several times knows this. But this no longer has to be the case. The standards and technology exist to make secure authentication seamless and near instantaneous.
By adopting open standards, modern patterns and implanting the necessary technology, companies — including banks, retailers, fintechs and others — put themselves at the heart of the digital economy. They allow their customers to pay, share, transact and transfer instantly, with no wait and no frustration.
In doing so, not only do these companies enable the best possible customer experience — a key to customer acquisition and retention — they also generate a multiplier of value, by offering their customers instant, secure and seamless access to all the services the digital economy has to offer.
In this white paper, we look at how you can harness the power of digital identity to give your company a decisive competitive edge in the global, connected economy.
[1] World Payments Report 2018, Non-cash Payments Volume, Cap Gemini
[2] The value of online banking channels in a mobile-centric world, Val Srinivas and Richa Wadhwani, Deloitte, 13 December 2018
[3] Digital-only banks: Traditional players copy challengers, WUP.digital, 14 February 2019
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