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Is Identity Broken?
Identity is broken, or many will have you believe so, in reality it sort of works allowing hundreds of millions of consumers and businesses around the world to activate and access services around the world. Clearly more needs to be done, and the industry is burgeoning with new solutions, approaches, strategies and movements to try and solve the conundrum or conundrums. That is really the key message here, for too long the perception is that identity is as a single thing a credential or a token, well I have some news for you it isn’t. As the digital world evolves, identity should increasingly be considered as a multitude of factors which are linked to an individual or entity, and how that end state of the identity is constructed and subsequently used has to be contextual, based on the use-case, value, time-constraints and so on.
That’s where Orchestration technology comes into play, lets therefore peel back Orchestration further and explain Orchestration technology, how it solves complex challenges in respect of AML, KYC, KYC and Fraud Management and what are the key ingredients needed to make it work.
Perhaps a good starting point is looking into what Gartner has to say about Orchestration. According to Gartner in its *Market Guide for Identity Proofing and Affirmation “by 2023, 75% of organizations will be using a single vendor with strong identity orchestration capabilities and connections to many other third parties for identity proofing and affirmation, which is an increase from fewer than 15% today.”
So the market for such technology is certainly on the upward spiral, with the potential that it becomes more mainstream over the coming years. Naturally we have seen a growth in new entrants into this product area, but it’s important to consider some of the market challenges an Orchestration platform should be able to address:
Application of Orchestration Technology
Furthermore, Orchestration can be pivotal in solving many key challenges in Identity and Risk Management one such example is with KYC/Identity Verification –
As the industry increasingly looks towards solutions such as self-sovereign identity the above example of enabling Digital Identity through Orchestration then managing contextualisation of how the identity can be asserted based on the use-case, relying party, transactional value and so on, are all core features that bring the proposition further to life in a way that erodes concerns over trust and data privacy.
Another area that is really compelling for Orchestration is with Business Verification or KYB. As the digital world (driven by the pandemic) has driven SME’s and large corporates to embrace Fintech, but the compliance processes that underpin entitlement are equally important. Here is a potential orchestration strategy to consider:
In Summary, an Orchestration platform is best summarised in the recommendations by Gartner in the same report referenced earlier :
Recommendations - Build an identity-proofing strategy on a foundational orchestration layer:
Riten Gohil is a Partner & Co-Founder at Sphonic a London-based RegTech business, he has been a practitioner in the field of fraud, identity and financial crime from his time working at the likes of the DWP Organised Fraud team, Flutter.com, Minutepay.fr, Serious Fraud Office, EY Forensics, APACS (UK Finance) and Visa.
*Gartner, Market Guide for Identity Proofing and Affirmation, September 2020. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
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