Verifying your identity online sells somehow means uploading scanned images of your real IDs, which is managed by a central party; may it be your passport number, Aadhaar Card, proof of address, or other means. This also means that a user has to remember more than a few passwords and usernames to log into different accounts for different services. Acknowledging this trouble, Mastercard tweeted that they, along with Microso, are about to work on a universal digital identity. Did we hear it correctly? In this article, we’ll tell you how we feel this affects consumer experience and the banking sectors as there are no new updates from both companies.
Why is there a need for a single Digital Identity
Let us all agree on- the passwords and security questions we have been using for identifying us are unsafe and overused. The idea of building a single electronic identity is to create one universally accepted ID that will allow your authenticity. Diagnosing the problem is easy, but the treatment is, however, isn’t.
For what could this digital identity be used
- Digital services like movies, music, games, social media, streaming services, and e-mail
- Government transactions- tax filing, passport renewal, etc
- Social Security Payments
- Seng up a new bank account, loan approval, or payment services via banks
- It can also be used for a more customized and efficient online and physical shopping experience
- It will solve identity verification problems, fraud prevention, and give identity to more than 1 billion unrecognized people.
How big the picture is
NY-based Mastercard is one of the leading technology companies that handle payments processing transactions more than $20 billion in a single day across 210+ countries and territories securely.
On the other hand, Microso is amongst the top e-commerce merchants in the world. People thought of it as dystopian technology at first because if Microso and Mastercard come up with a single, reusable, universal digital identity, then it means that these two companies will have a database of every piece of information of a person on this planet. Isn’t it frightening enough?
But, with Mastercard’s simple transaction process and fraud security solutions and Microso’s software services, we can rely on what’s coming next. Whilst me, hold your horses in the stable because there isn’t any update on how will this digital identity look. All we know is that this identity will let people enter, share, and manage their identity their way.
Will it be customer-centric
A Mastercard spokesperson confirmed that the program is still under construction but will surely be customer-centric.
“We intend to give people more control over their own digital identities, allowing them to easily manage and share their information their way with the devices they use every day. With our service, which is still in development, people would be able to easily verify their digital identity through trusted sources to whom they have already provided their information such as banks and mobile network operators or government and postal services, sharing only the information needed to conduct their transactions.”
One more concern of a lot of people is unlimited access to their information to different parties. But a dive the algorithm of this program could be a relief.
You initiate the process of Mastercard identification at your bank or an institution authorized by Mastercard. It will gradually start accumulating your information in a data collage. This is the form of a digit token, will later be stored on your phone. MasterCard confirmed that it wouldn’t hold these token in its central repository nor will it have access to store uploaded physical documents.
This identification will work on ‘zero-knowledge proof.’ This means that you can prove your point without disclosing any information about it. For example, this ID will determine if you are 18+ or not to open a bank account without revealing your actual age. Or it will let hotels know if you have a valid passport without allowing them to hold of your passport number. This will surely help with cutting down shady breaches and data transaction frauds.
Benefits of universal selling identity in banking sectors
- Faster reporting mes that lead to onboarding of a large number of users at one me.
- An elevated level of accuracy as typing errors are reduced.
- Improved security. Traditional methods like passwords and security questions are a thing of the past.
- Lower operational rates and effective management of resources.
- Beer customer experience overall due to fewer touchpoints and increased speed of the process.
- A single token of information approved worldwide.
This program will be run under Mastercard’s expertise in digital transactions and Microso’s identity technology. The world will soon know what’s coming on the surface.
A single program that universally recognizes 7 billion people across the globe or a Mastercard-Microso powered information sucking powerhouse.
We shall wait!
Come join us at the second annual of The Future Of Digital Onboarding & Customer Experience Summit 2020, Another leap in Onboarding for Bank :