Disclaimer: This blog reflects my personal assessment of the Money 2020 conference and is not a sponsored post. The opinions shared here are based on my own observations and conversations with industry professionals.
Attending the Money 2020 conference in Las Vegas (Oct 27-30) provided invaluable insights into the evolving landscape of identity verification. Here’s a breakdown of key themes, capabilities, differentiators, and innovations that were highlighted at the event. If you'd like to dive deeper into any of these topics, please reach out!
Key Themes: Industry Trends and Shifts
Lack of Document Authentication Standards
A significant challenge across the industry is the absence of universal standards for validating document authentication and measuring solution performance. Without these benchmarks, there’s considerable variability in approach and quality among vendors.
A Saturated Yet Evolving Space
The document authentication space is undoubtedly competitive, with many vendors offering similar capabilities and approaches. While this saturation presents challenges for differentiation, it also reflects the high demand and importance of robust authentication solutions in today’s digital landscape. Many vendors emphasize similar core features, which underscores the need for clear, standout innovations that can set solutions apart and add unique value for customers.
Apple’s Role as a Key Player
Apple’s entrance into digital identity verification has garnered significant attention, and many view it as a potential partner rather than a competitor. With Apple’s potential need for document authentication providers to support document additions to its digital wallet, many in the industry see collaboration opportunities on the horizon. However, there’s also a concern regarding customer support. If users encounter issues with Apple’s digital identity products, the lack of direct, responsive support may present challenges. This highlights the continued importance of customer service provided by other identity verification vendors, who are often better equipped to offer prompt, dedicated assistance to users.
Emphasis on Deepfake Detection
As deepfake technology advances, the ability to detect altered media has become a crucial part of identity verification, with companies racing to stay ahead of potential threats.
The Vision for Reusable Identity
The concept of reusable digital identities gained significant attention, with a general consensus that this will be a key direction for the industry. Reusable identities could streamline the verification process, providing a single, verified digital identity that can be used across various platforms.
Capabilities Landscape: The Baseline and Beyond
Vendors showcased both baseline capabilities and advanced differentiators that offer distinct value to customers.
Baseline Capabilities
Consortium for Fraud Insight Sharing: Companies are part of consortiums that allow for the sharing of fraud insights. This includes checks like face velocity, name velocity, and document number velocity to identify anomalies.
Single API and Signal Orchestration: Many solutions now offer a unified API with orchestration capabilities, allowing for the integration of signals for comprehensive verification.
Customizable User Journeys: Drag-and-drop tools for defining rules and signals are now common, making it easier to create customized user flows.
Global Coverage: Support for over 1,700 documents worldwide has become standard.
Auto-Capture and Liveness Detection: Automatic data capture and document liveness detection ensure secure and seamless user experiences.
Doc-to-Selfie Comparison with Liveness Checks: Matching document photos with selfies using liveness checks has become a standard anti-fraud measure.
Differentiators
Several companies stood out with unique capabilities that address specific customer needs:
Validation for Thin-File Customers: Solutions that can authenticate individuals with minimal data histories offer a competitive edge.
Speed and Accessibility: Enhanced speed and accessible design remain priorities in a competitive market.
Deepfake Detection: This capability is increasingly essential as deepfakes become more sophisticated.
Identity Graphing: Building a 360° identity graph allows for a more comprehensive understanding of a consumer’s identity.
OCR and Identity Graph Validation: Extracted OCR data from documents can be cross-referenced with identity graphs for added accuracy.
Differentiating Regular vs. Abnormal Behavior: By identifying abnormal account behavior, companies can effectively reduce fraud.
Regional Certifications: Compliance expertise across regions (such as Mexico, Peru, and Central America) and certifications like NIST iBeta Level 2 provide added trust for global markets.
Silent Authentication for Phone Possession: An innovative approach where user possession of a phone can be verified without additional input from the user.
Innovations to Watch
Several forward-thinking innovations were showcased at the conference, pointing toward the future of identity verification.
Short Video for Enhanced Liveness Detection: Current single-frame liveness detection algorithms achieve 95-98% accuracy but struggle with complex scenarios like makeup, lighting conditions, and reflections. The hybrid approach of using short video clips allows for more precise detection. By analyzing subtle movements, these solutions can even detect deepfakes without requiring heavy processing on the client side.
Multi-Layered User Authentication Service: One company has developed a robust, multi-layered approach that moves beyond SMS OTPs to include options like voice calls, WhatsApp, and Passkeys. This versatility allows customers to configure authenticators based on connectivity conditions, ensuring reliable user verification even with low or no network access.
DMV Partnerships for Mobile Driver’s Licenses (mDLs): Some vendors are collaborating with state DMVs to pioneer mobile driver’s licenses. For instance, a recent mDL hackathon hosted by the California DMV attracted several document authentication vendors, highlighting the potential of these partnerships to advance digital identity.
Leveraging Identity Graphs for Non-Identity Document Verification: One company applies a unique application of identity graphing by validating non-identity documents like bank statements to verify a person’s identity, particularly for lending purposes. For example, OCR can read and cross-check bank statements against identity graphs to confirm authenticity.
Ranking User Journeys: One company offers a tool to rank user journeys (e.g., account opening processes) based on customer feedback, reviews, and success rates. This data-driven approach allows businesses to optimize their processes based on what’s already working in the industry, reducing the need to reinvent the wheel.
Companies to Watch
While I’m not declaring any single “innovator” in the field, my discussions at Money 2020 highlighted FacePhi, Socure, IDVerse and Twilio as companies to watch. Their unique approaches and dedication to advancing identity verification technology make them standout players in a competitive landscape.
Final Thoughts
Money 2020 underscored the rapid evolution and unique challenges within identity verification. From standardization issues to the potential of reusable digital identities, this industry is rife with opportunities and obstacles. Solutions in deepfake detection, regional certifications, and versatile authentication methods are just some of the innovations driving progress.
Please don't hesitate to reach out if you’d like to discuss these trends or explore specific solutions further. Let’s continue the conversation on shaping the future of identity verification!
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