The volume of financial transactions made with digital identities will replace conventional credit card operations. In the financial services industry, the trends for 2023 aim at a growth in authentication of transactions based on the digital identity of the user in detriment to traditional payments inputting credit card numbers. Tools based on artificial intelligence (AI) and biometry will be essential to increase the security of these operations.
In the midst of the global economy transformation, users’ behavior pattern changes can also be observed. According to Robert Prigge, CEO of Jumio, biometric authentication facilitates the consumers’ access to their information, when it comes to digital credit cards, bank applications, and digital methods of payment.
“With this, we should see the number of completed transactions using digital identity surpass the number of transactions using credit cards,” said Prigge.
A study conducted by Jumio (a global company specialized in end-to-end identity verification, eKYC, and in anti-money laundering solutions), points out the most relevant security trends for 2023. In the eyes of the experts, the pressure for social media networks to verify the age of their users will increase.
Prigge highlights that the use of platforms and sites by underage individuals, without the consent of their legal guardians, will be monitored more and more by security solutions.
“We will see more social media networks following in the steps of Instagram, when it comes to implementing security measures to verify the age of their users with precision, but the debate about privacy versus protection will also continue,” he said.
The combination of AI and biometry will take on a fundamental role in verifying users’ ages. Prigge emphasizes that only 39% of users believe that the verification methods for digital identity within social media networks function as they should. This data is part of 2022’s Global Study on Digital Identity, published by Jumio in the second trimester of 2022.
Advancement in the regulation of digital identity
Within the trends mentioned by Jumio for 2023, is the advancement of the regulation process for digital identity. In the United States during 2022, the legislative branch worked on projects related to digital identification. This movement has also gained traction in other countries. From Jumio’s CEO’s point of view, this trend will be materialized into law bills that regulate the digital verification for organizations within the government sphere.
In Latin America, the expansion of fintech services has stimulated the application of security processes to reinforce digital credibility. Samer Atassi, the Vice-president of Jumio Latin America, explains that the movement of online financial services offerings, which extrapolate fintech operations, takes the digital credibility to another level.
“This must mainly be seen among shared economy and online game brands. As a result, these companies will seek to make the users’ experience as fluid and simple as their services, customizing their streams and allowing different levels of verification, depending on each clients’ risk profile,” said Atassi.