Ethical Data Practices Builds Consumer Trust in Biometric Identity Verification

Digital Identity Tracker December 2021/January 2022 - Learn how businesses can leverage biometrics to ease consumers' security and privacy concerns

Digital Identity Tracker December 2021/January 2022 - Learn how businesses can leverage biometrics to ease consumers' security and privacy concerns

Consumers continue to use digital tools to safely and conveniently interact and transact during the pandemic — but when it comes to trust, many are concerned about how companies are handling their data. A fair share is even concerned that most companies they interact with are ill-equipped to safeguard their information or keep it private, putting the onus on Cloud Concerns: Four out of five U.S. adults are concerned about storing their private data in the cloud.businesses and digital identity solutions providers to ease their worries and communicate more openly and transparently about how this sensitive information is used and managed.

This is not to say that consumers are willing to forgo convenience, however. After all, they have experienced the ease of digital interactions in all facets of their daily lives during the past two years. Too much friction can send them seeking out competing businesses or service providers that offer simpler, smoother processes. Walking the fine line between convenience, security and privacy during verification and authentication can seem daunting for businesses, but there is a technology well-suited to the task: biometrics.

The January edition of the “Digital Identity Tracker®,” PYMNTS assesses consumers’ growing demands for digital identity solutions that offer security and privacy without sacrificing ease. It also examines how biometrics give consumers the smooth, secure verification and authentication experiences they crave, so long as businesses and solutions providers are open about why they need personal data and what they are doing to keep it safe.

Around the Digital Identity Space

One space where consumers are warming to the use of biometrics is the air travel industry, where frictionless authentication can mean the difference between spending several hours stuck in lines or a matter of minutes cruising through security checks. A recent survey from the International Air Transport Association revealed that 73% of travelers are now willing to provide their biometric data to receive more streamlined experiences, a notable increase from the 46% of passengers who said Data Handling: Almost two-thirds of North American consumers say data-handling methods and ethics affect whether they choose to do business with a given company.the same in 2019. However, just 36% of consumers report having undergone biometric scans, and more than half are still worried about data breaches and bungled data handling. This shows that biometrics providers must do more to ease consumers’ minds about the technology’s security and privacy to increase adoption.

Digital identity providers in other sectors also rely on emerging technologies to enhance authentication and verification. Many are developing solutions that hinge on using a now-ubiquitous tool: the mobile device. Technology giant Apple recently submitted a patent application that could signify the company’s interest in allowing iPhones and Apple Watches to be used as digital ID devices outside of serving as digital driver’s licenses. The patent outlines a framework that would enable sharing of private, identifiable data among a group of mobile devices without imperiling privacy.

For more on these stores and other digital identity headlines, read the Tracker’s News and Trends.

How Emphasizing Transparency Can Get Consumers to Buy Into Biometrics

Biometrics can help consumers unlock smooth authentication experiences, but many are wary of sharing too much information with companies until they are assured that their data is handled ethically and securely. This means businesses must communicate with customers about why their biometric data is needed, how it is being collected and whether it will be shared with other entities.

In this month’s Feature Story, Robert Tappan, managing director for industry trade group International Biometrics + Identity Association, explained why it is crucial for organizations using biometrics to operate transparently and reassure consumers that they — and their data — are protected.

Why Consumer Trust Hinges on Ethical Data Handling, Addressing Privacy Concerns

KYC Gaps: Using several KYC vendors can create technological and logistical gaps in organizations' defenses that fraudsters may exploit.Today’s consumers are no strangers to digital interactions, and their experiences are making them focus more intently on privacy and security. Digital identity solutions are particularly promising when giving consumers smooth and secure verification and authentication processes, but consumers place a premium on trust and are increasingly unwilling to deal with companies that cannot ease their concerns about how their data is shared and handled.

This month’s PYMNTS Intelligence explores consumers’ desires for security and privacy as they conduct more of their daily tasks online, and what companies must do to earn their trust in the new digital age.

About the Tracker

The “Digital Identity Tracker®,” a PYMNTS and Jumio collaboration, examines the latest developments and trends in the digital identity space.