Digital identity rollout critical for digital wallet confidence and growth

UK organisations and consumers are ready to embrace a new era of digital identity according to a new report from Curity.

The term digital identity is not new, it is a term that can refer to different concepts often with considerable overlap. The definition for this report is that digital identity is information used by computers to verify and allow access to online services by a person, organisations, applications or devices.

Secure digital identities are a critical component in the ongoing digital transformation.

Businesses rely on technology to enhance and improve their services and competitive edge. Usernames and passwords will wane in popularity and methods such as biometric authenticators and Passkeys will help deliver these new services and thwart the hackers.

The developments we are now seeing in digital identity signal a move away from disparate methods and pieces of information to verify identities.

Many of these are inconvenient and some are even insecure.

As digital identity develops, the authentication tools that organisations have available to them are set to become some of the defining features of this next stage of digital transformation.

From the report:

63% of UK organisations either currently use digital identity or have plans to incorporate digital identity solutions into their operations, with 61% of those planning to do so within the next year.

Additionally, 52% of UK firms have plans to incorporate new and emerging identity solutions.

UK consumers are also displaying a growing familiarity with digital wallets, with 58% of consumers currently using them and half of consumers that don’t currently use digital wallets considering them in the future.

The report entitled “Plotting the Roadmap for Digital Identity” surveyed 200 IT decision makers (ITDMs) in the UK and US as well as 1,000 consumers to better understand the rapidly changing digital identity landscape.

This report comes as the UK government has introduced a new trust framework for digital identities.

The report reveals that 60% of organisations surveyed expect identity to have a transformative impact on their industry, with financial services (89%) and health (86%) seen as industries set to benefit most from latest innovation in this area according to ITDMs.

Finance (62%), retail (61%) and travel (46%), were the most popular services used by consumers with digital wallets.

Financial institutions (38%) are current leaders in public trust when it comes to storing personal data in digital wallets, followed by medical providers (35%), whereas the government (22%) and transport providers (17%) were the least trusted, according to the research.

Key findings include: 

• Among UK consumers that currently use digital wallets, 77% use it weekly and 30% use it daily
• 60% of consumers in the UK & US highlighted data privacy risks and fraud as reasons they would be hesitant to store personally identifiable information in a digital wallet.
• Top security challenges posed by digital ID for ITDMs are hacker sophistication (39%) and lack of appropriate infrastructure (37%).

“As consumers demand seamless digital experiences and organisations face increasing pressure to protect customers’ data, continued innovation and development in the digital identity space could not be of greater importance,” says Travis Spencer, Curity CEO.

“While there are encouraging signs that businesses are adequately prepared for the paradigm shift that decentralised identity will cause, the winners after the move will be those that cultivate trust among consumers.

The question of how digital identities are managed and by who will continue to be a key question over the coming years. To keep up with this pace of change and consumer expectations, digital identity must be on the priority list of enterprise architects and strategy makers.”

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