Analysis of the current digital identity verification market

Digital relationships between a company and its clients are based on trust. One of the manifestations of this trust is ensuring that the identity of the person is valid. In other words, on one hand ensuring that the digital identity corresponds to a real identity, and on the other, that this real identity corresponds to the person we have at the other end of the line, and that it is not a case of identity fraud or theft.

A recent study by Gartner, entitled “Market Guide for Identity Proofing and Affirmation”, involved an in-depth analysis of the current digital identity verification market, especially with regards to new developments in this field, and the rapid progress in the digitalization of many companies and sectors as a result of the COVID-19 pandemic.

What have we learned from the Gartner study?

1. A more complex and in-depth view of the digital identity verification market

According to the study, the identity-proofing market encompasses a broad range of capabilities in two tool categories. On one hand, identity-proofing tools, which show that the identity corresponds to a real person, and on the other, identity affirmation tools which include a wider range of capabilities. These affirmation tools help generate trust, but they cannot validate identity themselves as they cannot prove that the user who is claiming the identity is authentic.

2. An update on the impact of COVID-19 on digital transformation

In many organizations, digital transformation has been accelerated by the COVID-19 pandemic. For example, the use of digital banking increased, both because of the lockdown and because of consumers’ perception of physical money as a possible transmission channel for the virus. This has refocused attention on the digital onboarding process as a critical requirement for operating online.

3. A global analysis of the existing solutions

Currently, there is a wide range of identity verification solutions on the market that include multiple capabilities. This can become a problem for companies, both when choosing the solution and the provider, and when integrating the solution into their system and managing process flows. But ultimately, the most suitable technology will be defined by the interaction channel and the level of trust required in identity verification, and it will probably be necessary to combine different techniques to achieve the desired results.

According to the study, it is predicted that in 2022, 80% of organizations will be using document-centric identity proofing, such as Mobile Verify by Mitek, as a part of their onboarding workflows, which is an increase from approximately 30% today.

4. A breakthrough for biometric facial verification

The data shows a demographic bias in the results of facial recognition algorithms. Although this possible bias in terms of race, age, gender and other characteristics was detected some time ago, in the last few months this factor is attracting more interest due to the negative impact poorer verification results for a certain segment of the population could have on a brand.

The conclusions of the study are particularly interesting, including the recommendation of selecting the capabilities of an identity-proofing solution depending on the ‘customer journey’, as well as evaluating at what point in the process the identity-proofing and affirmation tools can add value when combined with authentication and fraud detection tools.