Digital Identities

Digital Identity:What's Driving the Shift and How to Navigate

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.

Facebook

Google+

Twitter

Yahoo

Other

LinkedIn

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

For more information and best practices around managing digital identities, visit our blog at http://blogs.lexisnexis.com/identity-management/