Dutch digital security company Gemalto has built a digital identity solution, dubbed Trust ID Network, which allows consumers to provide digital services with their verified answers to ID verification questions.
The solution was built on R3’s Corda platform, and enables consumers to enroll with a variety of digital banking, e-commerce, and e-government services without dealing with repetitive and time-consuming due diligence processes for each.
Users can control their Trust ID Network via Gemalto’s mobile app, dubbed ID Wallet, where they can add personal data to their digital identity, and provide consent to share their digital ID with chosen service providers. Gemalto is now inviting financial institutions (FIs) and other stakeholders to take part in the pilot, which will launch later this year.
The digital ID solution will likely be particularly attractive for FIs. The finance industry has to comply with an increasing number of regulations, many of which affect know-your-customer (KYC), data privacy, and customer authentication processes.
A digital ID verification process would make it easier for FIs to conduct these checks, while also ensuring that they stay compliant with regulations. Additionally, this makes onboarding less time-consuming for customers, which is especially important, as almost a third of consumers believe that the account opening experience with banks could be improved, according to Deloitte.
Gemalto isn’t the only player looking into digital ID verification, and the space is getting crowded.Tech firm Synechron trialed a KYC compliance app built on Corda in June, which included BNP Paribas and Deutsche Bank; and 10 of R3’s members, including BBVA, ING, and UBS, tested a KYC registry in November last year.
Additionally, Microsoft, together with Accenture and others, is looking into developing a blockchain-based identity system to help the 1.1 billion people in the world without a legal form of identity. Many influential players are getting into this, but at the end of the day, success depends on how many companies eventually employ a particular digital ID, as these solutions get more useful as additional players opt in. As such, the success of Gemalto’s offering will depend on who participates in its pilot, and which companies use the solution once it’s live.
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