The need for a well designed Digital Identity solution
By Abhijit Singh, Technology Thought Leader
Identity is a very important part of our lives. Identity documents provide us with a way to prove we are who we say we are. We use documents like address proof, driving license, passport, electricity bills etc. These are then verified (in most cases) manually or with other manually verified records to confirm our identity. In a completely digital world, our first step in our digital journey to avail services like bank accounts etc begins manually. Is this the right model for the future?
The problems with the current model are plenty. The challenges which have come with the current COVID-19 pandemic have brought this out to the fore. As more and more businesses and services move online, customers and businesses are increasingly driven to make identity and verification checks remotely. This is required to eliminate face to face verification. Given the lack of true digital identity, more often than not, these are being done by people having to send scanned copies of their identity documents to the organisation in the trust that these will be stored securely and would not be misused. Storing all the identities in a single place also opens up the risk of misuse. We hear of these stories every day wherein the identity of people have been compromised.
Many governments and regulators across the world are realising the importance of digital identity. They believe it is a foundational element for a true digital infrastructure.
A digital identity solution, therefore allows one to prove his/her identity online without relying on physical documents. It is a method through which one can electronically verify who one claims to be. The digital identity is secured by advanced cryptographic techniques which helps the consumer to confirm or deny the criteria required to avail a service rather than transferring his or her entire personal information which may not be needed. A common example is that we share our date of birth for a number of services that may not require the date of birth as a criterion to avail of the service.
A digital identity solution comprises of a few building blocks – a method to create a provable digital identity, an ability to authenticate across a variety of services to avail those services, the ability to digitally sign and optionally a secure digital locker.
A number of benefits would accrue to the consumers and businesses and indirectly the economy at large. A correctly designed solution can help consumers increase data privacy and control, protect people from the threat (increasing daily) of cybercrime. For businesses, it would reduce the cost of doing identity checks and verifications , seamlessly get willing consumers onto the online services quickly and provide a means for the prevention of fraud. As per some media reports, identity fraud is showing an increasing trend year on year. The most important currency in the digital world is trust. Digital identities are how trust can be conveyed and embedded in a completely digital world. As such the necessity to come up with a comprehensive digital identity solution is the need of the hour.
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