Margot Markhorst and Amos Kater from iDIN share with The Paypers updates on already established digital identity schemes
Industry experts say: ‘To date, the focus of many digital identity solutions has been within the identification domain (i.e. customer onboarding, ID proofing, KYC etc.), however the general movement of the industry is now shifting towards a broader ecosystem enabling the sharing of trusted or verifiable data centred around the subject (person, organisation, or thing). All these factors have led to a fragmentation of the digital identity market. But all is not lost. Several collaborative cross-sector organisations are actively working to get everyone on the same page.’
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The use of electronic identity solutions (eIDs) such as iDIN, BankID, and Itsme is increasing. The use of eIDs simplifies the process of 'becoming a customer', shares reliable data, and makes it easy to log in as a returning user. Combinations of different verification methods enable a smooth digital customer journey and comply with legislation and regulations. Electronic ID Document Verification can help where an eID is not enough, for example when more attributes are needed than an eID shares, or when an additional check of an identity document is required by law. So-called 'lookup services' support flexible combinations of verification methods. With a lookup service, individuals can be matched with other records, such as the Chamber of Commerce records. Additional services can also be provided, for example to perform a check on the name and account number of a person or merchant as reported by his or her bank.
The benefits of using iDIN
With an eID like iDIN, people can identify themselves online and share attributes (name, address, gender, date of birth, email or telephone number), login or verify age (18+). This is possible because these persons have already been extensively identified and verified by their bank. iDIN is a joint initiative of Dutch banks. With iDIN, Dutch banks contribute to a secure and safe digitisation of the Dutch economy, based on many years of experience with online banking and security and the iDEAL online payment service. iDIN increases usability without compromising security and privacy. Moreover, iDIN secures and protects personal data.
Over 200 organisations in various industries integrated iDIN in their customer journeys, for many different use cases. iDIN can be used directly by (almost) all consumers with the trusted and secure login method of their own bank. Consumers used iDIN already more than 8 million times for logging in and for identification. Some results:
Market uptake
The market uptake is challenging. For example, the digitisation in some branches is far behind and decision processes take long especially within larger organisations. Furthermore, organisations and consumers are not yet fully aware of the value of e-identity.
The influence of PSD2/Open Banking on digital identity in the Netherlands
There are market initiatives to use iDIN related to PSD2 services. iDIN could be used for onboarding users to AIS and PIS, for example. iDIN could also be used for Strong Customer Authentication required by PSD2. iDIN requires two-factor authentication and with iDIN a user always gives explicit consent.
Opportunities & next steps
Citizens often expect iDIN to work for online public services, with social security numbers. This is not yet possible, however iDIN and the participating banks are committed to fulfil those expectations when it is made possible by law. iDIN ensures trust and reliability in online transactions between people, companies and authorities thanks to its universal applicability. The Dutch Tax Authorities already held a two-year pilot with iDIN, with high approval rates by participants.
iDIN is extended with functionality for signing documents. With iDIN Signature, a document to be signed is linked to an iDIN transaction that confirms that the user has signed the document digitally, with his or her bank's login method. In his familiar online banking environment, the customer gives explicit permission to share his data for signing a document.
iDIN is also extended with QR codes. Anyone with a smartphone will be able to scan an iDIN QR code for the purpose of logging in, identification or age verification. Just scan the iDIN QR code, securely approve it in your bank app and you are logged in or identified. The first pilots with iDIN QR codes are started. Thereafter the service will be rolled out this year. Try it out at https://qrdemo.idin.nl/.
The article was first published in the Digital Onboarding and KYC Report 2020, which offers insightful editorials on topics such as digital onboarding best practices and key challenges, financial crime and how to fight it, crypto, and more.
About Margot Markhorst
Margot Markhorst is Product Consultant iDIN at Currence. Her focus is on the online identification service iDIN. She has prior experience in project management at a payment service provider.
About Amos Kater
Amos Kater is Head of the Currence Team. Amos has a broad background in payments, telecom, and identity management.
About iDIN
iDIN is a service offered by banks that allows consumers to use their bank’s secure and reliable login methods to identify, login or confirm age on the websites of other organisations. The scheme management of iDIN is vested with Currence, the product owner of iDEAL, iDIN, and Incassomachtigen (eMandates).
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