An online or networked identity adopted or claimed in cyberspace by an individual, organization or electronic device.
Source: Techopedia
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What is a digital identity?
Currently, digital identity is very fragmented.
This has created an “every man for himself” approach to creating or confirming digital identities
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Reasons for fragmentation:
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•Instability of identities
•Lack of identity standards and commercial guidelines
Name Changes: Approx. 3M changes in marital status and 50K applications for name changes each year
Address Changes: Approx. 40M people move annually and 40% never notify the Post Office
SSN Error and Misuse: 20+% of people have multiple SSNs associated with their names
This presents a big challenge for consumers.
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…and the problem will only continue to grow as Millennials drive greater adoption of digital technologies, and change the face of digital identities.
23 4.0 Shopping accounts
3.2 Financial accounts
2.7 Email accounts
2.3 Entertainment accounts
2.3 Social network accounts
2.2 Communication accounts
The average number of password protected online accounts held by U.S. adults, including:
The future of identity is being shaped by and for millennials.
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Millennials (born between 1980 & mid-2000’s) represent 1/3 of the U.S. population and are the most diverse, educated and tech savvy generation in history.
The U.S. Bureau of Labor Statistics estimates that
of the American workforce will be
Millennials by 2020 50%
9 out of 10 own smartphonesSource: Nielsen
9 out of 10 use social networksSource: Pew Research Center
…and 34% turn to their social networks when making purchase decisionsSource: Association of National Advertisers, Barkley, SMG, BCG
Over 90% have logged into a website or mobile app using an existing identity from a social network Source: Gigya)
Millennials are very different than other customer groups.
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81% of Millennials are less about
“friendly” service than “fast” service.
87% of Millennials are Facebook users.
29%
Online Uploads of Videos and Images
Source: Fromm & Garton, Marketing to Millennials (2013)
262%more likely to be influenced by smartphoneapps.
Mill
en
nia
ls
60%
Millennials Non-Millennials
The future of identity is being shaped by and for millennials.
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As Millennials, smartphones and social networks collide, it’s creating an increased demand for federated identity. Federated identity allows users to log onto third-party websites, applications, mobile devices and gaming systems with their existing identity.
It’s also referred to as “Bring Your Own Identity” (BYOID) or “Bring Your Own Credential” (BYOC).
Account 1
FederatedIdentity
Credential
Account 2
Account 3
Account 4
Account 5
Identity federation has many benefits.
USERS
• Better customer experience• Less friction during
registration/onboarding
• Need to manage fewer accts
COMPANIES
• Ease of implementation
• User verification/enhanced proofing
• Access to identity attributes
• Reduced failed login attempts
• Reduced forgotten p/w requests
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• Transferred, implied trust
• Increased user control
• Enhanced privacy
Social login is the most common form of federated identity today.
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…but it’s not the only form of federated identity.
Google+
Yahoo
Other
66%
20%
6%
4%
2%2%
Source: Gigya, Q2 2015
Social login is actually low on the trust spectrum of identity attributes and login proxies.
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Expert/electronic ID document authentication
Verified bank account
Dynamic knowledge based authentication
Electronic copy of drivers license
Mobile number
Social login
Email address
LOW TRUST
Biometrics
Electronic copy of passport
HIGH TRUST
The future of identity will move beyond social logins.
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Federation doesn’t stop with social logins. A wide variety of commercial and government organizations can be identity providers.
Becoming an identity provider is about trust.
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To participate in the world of federated identity, identify the companies with whom you share common customers and can build a logical network or trust relationship…a trust framework.
Account 1
Account 2
Account 3
Account 4
Account 5