However, traditionally physical forms of Physical IDs may become obsolete within the next decade, according to Jesse Franklin, Senior Vice President of U.S. & Canada at Incode.
Benefits of digital identity management
Digital authentication has risen in adoption throughout the past decade, and user demand increased due to the COVID-19 pandemic due to the contactless nature of digital solutions, according to Franklin. “In a recent third-party survey conducted among 1,000 respondents, an increasingly large number of [users] agree that they would commit to a fully digital lifestyle where they could use digital authentication for all daily processes,” said Franklin.
Aside from convenience, users of Physical IDs have shown a concern for the security of their personal information, according to Franklin. “Personal information has become more sensitive than ever following spikes of cybercrime and identity theft, making [IDs users] more attentive to how their personal information is being used and stored,” he continued.
“In fact, our research shows that most [Physical IDs users] think that authentication conducted digitally would be more secure than legacy methods for accessing money at a financial institution.”
Preparing for the digital ID wave to replace IDs (Physical)
The digital identity management (IDs) wave is already here, with the pandemic catalyzing a shift to online and contactless security. Franklin expects this shift to extend into the long term.
“By 2030, I predict that physical forms of identification will be obsolete, with all, if not most, businesses having some form of digital authentication in place,” he said.
Security leaders looking to make the shift in their organization can follow the below steps to securely update their identity management systems. “Enterprise security leaders should prepare to convert their systems to become fully reliant on digital authentication methods,” said Franklin.
“First, they need to fully analyze their organization’s security posture and vulnerabilities in order to activate a successful authentication system (IDs Physical). They then must activate a secure database, regularly updating their records of those barred from building access who may pose using false credentials. Digital authentication technology will continue to advance and will soon become the standard for all physical security settings.”
Acuity Market Intelligence estimates that by 2022, the annual production of smart, biometric “physical” identity credentials – including ePassports, National Identity Cards, and Driver’s Licenses – will peak at more than one billion a year. They will begin to be replaced by next-generation “virtual” credentials securely stored in mobile devices and accessed via biometric authentication. And, by 2030, today’s standard identity credentials will be obsolete.
According to Maxine Most, Acuity Market Intelligence Principal and lead analyst, “The platform driving this transformation is being rolled out today. More than 220 biometrically enabled smartphone models are currently on the market. By 2018, all smartphones will include biometrics and by 2020, feature phones will be obsolete. The global deployment of this platform is the tipping point for full-scale adoption of digital identity.”
Several US states have begun evaluating smartphone-based driver’s licenses and similar initiatives are underway in Australia where “passport-free” travel is also being considered. Austria has a virtual National ID that can be loaded onto smart cards or mobile devices, and India’s UIDAI announced a move to Aadhaar-enable smartphones.
Most, a biometric and digital identity expert, continues, “We are in the early stages of developing global standards for digital identity. Smart virtual credentials enabled by biometrics are an important step. Biometrics on smart devices will be multi-modal, used for active and passive authentication, and stored both locally and in secure clouds depending on the application and level of risk.”
“Biometric-based virtual credentials will also eliminate the need for separate payment mechanisms,” says Most. “By 2025, biometric authentication will be standard for trillions of annual payments and information transactions and by 2030 physical payment mechanisms such as debit and credit cards will become inconvenient and increasingly not accepted. Secure, anonymous biometric authentication will replace multiple forms of identification and payment mechanisms.”
