BFC Bulletins Monthly News Digest
Tags Digital Transformation Identification
As the world heads toward an increasingly digitized economy, there are more and more choices for how individuals and businesses consume financial services. But in working toward this future and its seemingly inevitable integrated digital ecosystem, some important issues remain unresolved. Perhaps one of the most important is developing efficient and effective know your customer (KYC) processes. For this, digital identification offers the promise of a bright new future. Establishing enriched digital identification for the exchange of trusted data between ecosystem participants will lead to a better experience for business, retail consumers and financial institutions. Consumers will no longer face lengthy and frustrating onboarding processes such as face-to-face and paper verification. Collaboration among consumers and institutions will grow open banking ecosystems and reduce operational costs for onboarding and KYC. A shared approach to enriched digital identification also will provide collective risk management, reducing the ability of bad actors to access public and financial services as well as reducing the likelihood of fraud and cybersecurity breaches. In short, it’s time to start thinking truly digital and bring our identities with the economy into a digital world.
