25 September 2024, Wed |
12:30 PM
Gartner, Inc. forecasts that by 2026, over 500 million smartphone users will regularly utilize digital identity wallets (DIWs) for verifiable claims. Currently, identity verification (IDV) often involves taking a picture of an ID document alongside a selfie to confirm a person’s identity during digital interactions. However, as traditional IDV methods face challenges, portable digital identity (PDI) solutions are emerging as a more efficient alternative.
“The market is transitioning as PDI solutions mature, likely reducing the need for standalone IDV over the next five years,” said Akif Khan, VP Analyst at Gartner.
Challenges with Current Identity Verification
The existing IDV process, which involves repetitive ID-plus-selfie steps, is less than ideal. “Current methods focus on basic identity data like name and date of birth. As more processes move online, there’s a growing need to integrate additional attributes such as educational qualifications, employment proof, and healthcare data,” Khan explained.
The Rise of Portable Digital Identity Solutions
PDI represents a digital identity encompassing all necessary attributes for identification in the digital realm, with users maintaining control over their security and privacy. Users initially prove their identity with a trusted entity, which is then recorded as an identity assertion. This assertion can be stored either centrally or in a decentralized DIW on the user’s smartphone. Decentralized models offer the advantage of verifiable credentials, allowing users to make assertions, such as age verification, without revealing excessive personal data.
Governments are already addressing this shift. The European Commission, through the eIDAS Regulation, will mandate all EU member states to provide DIWs to citizens by 2026. However, numerous vendor products are currently available for organizations to leverage PDI for specific use cases.
“Chief information security officers (CISOs) need not wait for government mandates,” Khan noted. “For instance, CISOs can implement decentralized identity wallet products for employees, integrating them into onboarding, account recovery, and IT help desk workflows. This enhances security with strong authentication and improves user experience by eliminating repetitive IDV processes.”
