Identity Tech

Identity Tech

Any person must first establish their identity in order to be eligible for both public and private advantages. Consider those who lack a formal identity because we took it for granted because it came so readily to us. They fight constantly to establish their identities in order to satisfy various fundamental necessities. They find it difficult to create bank accounts, obtain mobile SIM cards, access financial services, purchase real estate, and other things. For these people, the cost of obtaining an identity is likewise prohibitively high; they must exert significant effort and incur significant expenditures.

Additionally, a digital identity lowers an institution's acquisition costs, enabling them to provide profitable client service at a cheap price. Furthermore, establishing citizenship, property ownership, and many other things depend on an identity that has been granted by a recognised authority.

The largest digital identification programme in the world, Aadhaar, UIDAI, e-Estonia, blockchain-based identity, the future of identity, and grievance resolution in digital identity will all be covered in this business-oriented overview course. The Bank ID programme and recent developments in digital identity will be added in the future.

Significance of Identity Tech

• By creating precise client profiles, it aids in enhancing operational efficiency and removes "human error" from manual verification procedures.
• By making innovative goods or services available to customers who were previously excluded owing to verification restrictions, financial revenue is increased.
• Eliminating any obstacles to online transactions and protecting personal characteristics to deliver a greater user experience.

Challenges

Banks and financial service providers must be able to "offer goods and services (with enhanced scalability) that need to be technologically sophisticated," according to Phillip Malcolm of Refinitiv. Any significant interruption to anti-money laundering procedures might cause irreparable harm and require significant investments in digital identity infrastructure and systems.

In addition, financial service businesses will be subject to regulation for compliance and fined for any violations given the billions of dollars that are exchanged through online payments and eCommerce transactions.