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Jan 25, 2021

Digital Identity Companies: guidelines, patterns and how to choose

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Digital Identity Companies: guidelines, patterns and how to choose

Digital identity companies are transforming and promoting the way we operate online. Acquisition and onboarding of customers are crucial for any business that wants to grow today. For this reason, digital identity companies are the reference partner when planning the global businesses and organizations strategy in any sector.

In the same way, digital identification is not only a reality in the online environment but also in the offline plane. The integration of digital devices at the point of sale and other types of devices and places to which people access is driving the activities of society.

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What is a digital identity company

Digital identity companies are organizations or businesses dedicated to the development of technological solutions focused on qualified verification of identity of users.

These companies, framed within the sector Regtech, are usually innovative startups that focus their products and services around the digitization processes of their clients. As SaaS providers of software and digitization, this area is crucial for businesses to operate on the internet with security, guarantees and confidence.

Due to the digital transposition of all sectors to the online plane, especially those sensitive ones such as banking (Fintech), investments (Wealthtech), or insurance (Insurtech), digital identification needs skyrocketed and acquired the importance it has today.

At the same time that this change was happening, governments and institutions of all states began to legislate in such a way that a series of concrete requirements were established so that companies could carry out client onboarding and that these ones can subsequently carry out delicate procedures in a totally remote way.

Thus, digital identification processes became both a technical and regulatory obligation for companies and institutions to carry out their activity.

Main types of available solutions

Digital identity companies offer a range of products and comprehensive services tailored to the needs of all those business or institutions that have a presence both onsite and online:

Get here a free 15-day trial of the main eID digital identity solutions. 

Identification

The concept of identification is self-explanatory: It is the way we have to ensure that the identity of an individual corresponds to the one who is supposed to be present, operating or managing. Thus, any identity fraud is eliminated in intentional order to commit other additional crimes.

Especially for the financial and banking sector, which has even more specific digital identity needs, this process is widely known as KYC (Know Your Customer).

Thus, digital identity companies must offer a comprehensive identity verification solution that is secure, adapted to the regulations of the client’s state or region, reliable and versatile, being able to be integrated into the client’s systems, channels, and applications with ease and cohesion.

Authentication

As an extension of the first identity verification in the user’s onboarding appears later authentication. Once the user’s identity has been registered and verified, they must be able to access the products, services and platforms available

Thus, user authentication solutions are crucial for any business and its customers. Digital identity companies strive to offer advanced, easy and agile authentication solutions that continue to respect regulation and technical needs in terms of security and experience.

Electronic Signature

The electronic signature services offered by digital identity companies represent a fundamental part of the process. The electronic signature links the identity of a user to a document, certificate, recording or any type of medium

Companies and organizations have a digitized, agile and secure way of establishing contractual relationships with their clients both remotely and online. It is important that digital identity providers can offer comprehensive solutions for simple, advanced and qualified electronic signature.

The application of their solutions

These identity verification solutions are designed to completely transform the organizations that adopt them by creating an infinite range of possibilities for the business or organization in question.

Previously unimaginable operations and activities are now possible thanks to the possibilities offered by the solutions developed by digital identity companies.

Check here more than 20 use cases in which digital identity is necessary.

Their approach

It is important that digital identity companies focus on user experience. They must not only attend to the needs of their customers but also think about their customers in turn

The implementation of digital identity solutions with a quality approach produces a very important cost reduction, boosts customer acquisition and makes business models scalable thanks to its innovative nature and its commitment to growth of companies and organizations.

Regulatory framework for digital identity companies

As RegTech partners, digital identity companies must be experts when it comes to regulation that affects their customers. Their solutions must not only be adapted to current regulations, but they must be vigilant to comply with those to come before they even come into force.

In the framework of online operations, the AML (Anti-Money Laundering) and eIDAS (electronic IDentification, Authentication and trust Services) standards stand out.

Download here for free our complete guide to AML5 and eIDAS.

Their third-party support 

Choosing a Digital Identity company is not easy. However, on many occasions, there are certain signs that can make us opt for one provider over another. 
Endorsement by third parties; ffficial bodies and the quality seals awarded by certification institutions are crucial. The awards and recognitions obtained as well as the fact that it is recognized as a certification authority are key elements that confirm that we are dealing with a quality supplier.