The Sharing Economy is transforming how we interact and conduct business, commerce, healthcare, and more. As the sharing economy is built on interactions between partners and consumers, lack of trust is the most important hurdle. The absence of a standardized, fully reliable method of verifying the identity of participants and equipping them to prove the authenticity of their credentials could pose a real challenge to the success of sharing economy participants. If you are looking for some identity verification service provide i would like to recommend Cognito Identity Verification.
Challengers Of Online Identity Verification
- The Online Identity Verification Process Creates Friction
A good online identity verification system should be nearly invisible. The sharing economy is continuing to grow and diversify, and customers are going to pick the businesses that offer simplicity and an assurance of security. Conversely, if onboarding is too lengthy, rigid or intrusive, a would-be participant experience ends before it ever started.
- There is no Single Definition of Online Identity Verification
Traditional identity verification is a relatively standard process. Most people are compliant with (even comforted by) requests for ID in offline environments like banks or airports. But in this digital world, despite of billions of online interactions (personal, enterprise, government), there is a lack of understanding of what identity verification means. Even the terminology varies widely by source and channel.
- Identity Verification Processes Change by the Moment
The sharing economy is young and growing. Fresh players and segments are continuing to come online almost daily. With the introduction of new marketplaces, new opportunities and new risks comes the challenge of practices and compliance required to build the trust needed to keep these marketplaces growing safely. At the moment, there are no standard verification requirements because guidelines and privacy regulations change frequently and inconsistently across industries and geographies.
- Online Identity Requires a lot of PII
Personally identifiable information (PII) is very prevalent in processes that distinguish or trace individual identity. It can include someone’s full name, Social Security Number or credit information, and is linked to a secondary source of personal information like date and place of birth, or mother’s maiden name.
- Current Methods Reveal Very Little “Real” Information
The challenges around PII are compounded by the fact that PII may actually reveal very little about a person’s qualifications. PII does not reveal much that is useful for creating security and comfort between participants in a sharing marketplace. Knowing someone’s name, birthday, or Social Security number tells you nothing of the qualifications that make them a valuable partner – and even less about personal qualities that will impact the transaction’s nature.
- You Must Verify (and Re-Verify) Constantly
Online identity verification is complex and successful verification is vital to the health of your brand. Companies working to grow a vibrant user base have to keep up with the changes within it. These efforts may require large amounts of time and financial resources than are available. Keeping up with constant verification needs should not be a challenge for your developers. It costs time and money, and ignoring it leaves you vulnerable to events that could seriously impact your brand.
- Regulatory Requirements Add Complexity
With the sharing economy positioned to double in size every year, it’s not surprising that online security and privacy regulations are becoming more complex and thorough, particularly in industries that require large amounts of PII.
- Ensure that you are able to verify the identities of all users involved in a transaction
- Give people ownership of their own online ID, eliminating the need to house private information inside your system.
- Thwart potential threat actors from stealing the PII of those participating in your marketplace
- Confirm (and automatically re-confirm) the credentials of your user base
- Protect individual identities, reducing your risk because only the owner can store, keep, and employ the data