Within the fast-changing digital space where users, companies, and financial institutions interact together, there’s a need to preserve users’ data. Data protection is inherent within the blockchain — as well as the implementation of innovative solutions for financial institutions or banks concerned with digital identity.
In the blockchain sphere, the concept has reached new heights. In this risk-averse, trust-driven field, everyone is curious to know more about digital identity and what it unfolds. idCredit is an actor that puts digital identity at the forefront of its strategy. To deliver trust and provide better customer-focused solutions, IdCredit shares insights on its processes.
What is a digital identity and why does it matter? How to enhance trust and transactions? What are the best implementation tools to preserve digital identity for your business? How about KYC and AML checks? What solutions are available for businesses and end users today? Let’s explore.
Within this digital identity guide, we unfold the true nature of trust, transparency, and best practices within the blockchain, and how to deliver value for any company. We furthermore highlight the full competencies of a leading blockchain actor focused on digital identity within blockchain and financial services, idCredit.
Defining Digital Identity
1.1 What is a digital identity?
The concept of digital identity has become predominant in the online world for multiple reasons. First of all, users interact on the Internet with governments, services, and organizations in various portals or URLs. Users disclose personal information to various parties, and it’s necessary to protect their data from theft or misuse. Indeed, misuse is widespread putting actors at risk of fraud. For example, a report indicates that in the U.S. alone, there were over 15 million individuals victims of fraud in 2017. Second, digital identity goes well beyond online data verification. So what is all about and what can we say about digital identity precisely?
Hence, defining digital identity and implementing actions to foster, protect, and use of digital identity more efficiently are necessary. According to Mastercard, digital identity may be defined as follow:
- a verifiable, reliable source of data around an individual
- up-to-date, highly classifiable, from reliable institutions that define an individual
- a trust and transparent way to verify an individual’s identity
Techopedia defines digital identity as a source of information and data that have the following attributes:
- personal information such as username, medical history, date of birth
- online information such as search and purchasing behavior
- digital identity is linked to multiple websites and URLs
1.2 Financial services, governments, and communities pay attention to digital identity and here is why
In the financial sectors — and extendedly within governmental organizations and online communities — digital identity is a critical element as data is private and needs protection. The need for trusted digital identity is rampant and exclusive to these domains where confidentiality is key as well protection against fraud.
Financial services and banks, especially, are in the need of a trusted digital identity — that emanate from a single source of truth, according to an analysis by Atos. Not only do trust matter but also a single source of trusted information is necessary for convenience and steering away of “old-school” ID verification.
1.3 Our vision (idCredit) of what digital identity is
idCredit has set up high standards as far as digital identity is concerned. Trust, transparent, and due diligence is at the core of the business. Protecting clients’ identity in order to execute safe operations over the platform is something the team worked on, with great success. KYC/ AML checks undergone by idCredit is at the highest standard.
Proof of this, the flexible solution provided by idCredit cover all compliance needs related to KYC / AML checks in order to make customer’s onboarding efficient. Processes are automated but keep the standard of protection needed to operate online at zero risk of fraud or identity theft. Digital identity is at the forefront of IdCredit and is never underestimated.
idCredit embodies what an exchange can do in the blockchain sphere, ensuring customers disclose their data within a top-notch institution. For clients after a regulated, trustworthy service provider that offer a easy-to-launch, flexible, and great support solutions, idCredit is the best answer.
The role of Trust within the consumer landscape
2.1 Why is trust so important for a user-centric digital identity?
Trust is capital within the online space and especially as far as user-centric digital services are concerned. As clearly exposed in a whitepaper by PwC, the provision of a digital identity comes from a cycle of repeated events, rather than a single event, which require extra trust and transparency from one service to another.
Digital identity lifecycle can be captured as follow:
Source: Digital Identity Whitepaper, PwC
The user enters attributes such as biographical information as well as online data that track purchasing behavior. The identity provider then verifies the information to ascertain the data is reliable, trusted and unique. Once the information has been securely validated, the digital identity information is issued.
Within the entire process, it’s fundamental to gather data from trusted and reputable sources so the data is concise, clean, measurable, and precise. As digital identity is maintained throughout a stage-by-stage process, data must be immutable and verified accordingly — hence trust plays a critical part in ensuring the information is correct.
2.2 How to preserve trust and transparency in blockchain?
Within the blockchain, where idCredit is active and built on, the element of trust is even more important. As the concept is still new for many users, ID protection and digital identity makes even more sense. As the sole idea of blockchain is based on trust and transparency, KYC/ AML checks are prevalent to ensure the users are real users with verified data.
By definition, the nature of blockchain is immutable, transparent, and governed by trust in the way users verify other users’ information within an ecosystem. Hackernoon has set up a set of standards to enable trust within the blockchain, by any blockchain organisations:
- Disclosing information around the ICO (Initial Coin Offering) in real-time and with trusted sources (CEO talk and online trusted sources that list ICOs)
- Presenting a real and live product in front of your customers and stick the roadmap initially presented to the clients
- Talking to the community and engaging in active online discussions, while providing easy-to-reach contact methods is mandatory
2.3 idCredit vision of trust and processes
Taking trust at a core element of its vision, IdCredit has set up easy processes to preserve users’ digital identity while making KYC/ AML checks simple. IdCredit works as “a distributed system that provides the functionality of identification for physical and legal entities, confirmed by identifiers with their electronic signatures and intended for use by financial or other companies who obliged to identify their clients.”
idCredit has incorporated an all-in-one solution to verify users’ data with trust and transparent so new users can verify and get their digital identity easily while organisations can enjoy fresh, clean data that’s been protected within the blockchain space of IdCredit.
idCredit can gather personal information (ID card, passport, documents, and driver license) compiled with a list of data used on the web (bank, government, exchange market and car rent, for instance) to establish a trusted profile of users. The data is safely secured on a single app. The sole user decides if his or her data can be disclosed to a third-party — stepping away of misused information. idCredit innovative solution, lastly, grasp complete personal data sharing history.
For organisations, the process is made simple, secure, and safe to validate users’ data, ensuring trust is met.
idCredit provides an aggregator of identifiers that save cost on compliance costs and procedures. The solution offers a flexible choice of verifications needed by the business while maintaining data integrity solid — with multiple data sources verified and trusted within the online and physical spaces.
Lastly, independent KYC companies can use idCredit network to verify new businesses and dealing with compliance issues.
An overview of KYC/ AML checking solutions
3.1 Defining KYC/ AML
With the expansion of the FinTech industry and blockchain, the need for a regulated environment happened to be necessary. That’s exactly where KYC and AML checks come handy but not only—KYC and AML checks are true responses to an industry concerned by trust, transparency, and technological development, with the blockchain at the forefront.
KYC can be defined as Know Your Customer — which is the process of verifying an identity. In KYC, each customer is supposed to provide credentials such as proof of ID before they can use a service. Let’s say users should be verified prior to access an organization’s service online.
AML is known as Anti Money Laundering and refer to measures taken by banks and financial institutions to fight against online crime. AML and KYC are distinct. AML regulations encompass a broad range of regulations — among them KYC — but also a diverse program to manage risks efficiently (audits, internal controls, risk-based policies).
A company that implements an AML program efficiently should be able to monitor and report risk of fraud, tax evasion and terrorist financial activities.
3.2 Solutions implemented by idCredit
idCredit has put KYC/AML at the epicenter of its program — to serve a panel of demanding customers while using the best of blockchain for its program.
The solution is convenient and cost-efficient, and enables clients to reduce their costs while having the best security. Plus, the effective burn & return (spam attack) system enables protection to data and users can enjoy the native utility tokens (IDC) for processing internal payments at ease and at zero risk.
Lastly, the solution is GDPR compliant — which is the toughest privacy and security law in the world. The General Data Protection Regulation requires organisations to report accordingly on data protection for their customers.
3.3 Why does it matter for your business?
For any customer looking into an innovative solution for KYC/ AML checks within the blockchain, IdCredit has everything at hand.
Choosing idCredit is best if such business has needs for an efficient, cost-friendly solution that is easy to implement at every stage of their business.
Being highly compliant reduces risk to the maximum — risk of money laundering or identity extrapolation — which is an important criteria for a business to conduct its operations safely.
The system is also operational and easy-to-set up thanks to an ongoing, dynamic team of professionals who are expert within financial services, blockchain, and KYC/ AML procedures.
The automation of processes related to KYC/ AML enable any business or end user to focus on suspicious cases rather than operational activities. Relying on top-edge technologies such as idCredit simply decrease operational costs and save time.
Digital Identity Verification – Summary and Solution
idCredit is an advanced service provider of KYC/AML powered by the blockchain. An one-of-kind company, idCredit offers a flexible solution to cover quickly, efficiently, at a lower cost all customer’s compliance needs related to KYC/AML checks. With top solutions and services that improve the customer experience during onboarding, idCredit will not only boost customers’ reputations on regulatory KYC/AML checks but also their overall performance.
As financial institutions, banks, and service providers within the blockchain are increasingly concerned with KYC/AML checks, idCredit has set up himself at the forefront of the business, with a leading reputation that goes beyond the simple provision of excellent services. Electronic signatures used for financial companies are made easy and verified, to provide an efficient and safe ecosystem for the entire industry.