Today, identity is more important than ever since digital channels are developing and taking over as the main way consumers connect with brands and businesses. From ID verification, compliance, and fraud detection through authentication and authorization, every step of the user journey is integrated.
The market for identity verification is anticipated to reach USD 33.92 billion by 2030, growing at a compound annual growth rate of 16.7% between 2022 and 2030. Identity orchestration is gaining popularity because it helps organizations quickly and effectively address common integration and workflow challenges. When it is done correctly, businesses can deliver quality user experiences.
But what is identity orchestration and how can it benefit your business? Read on to learn more about why identity orchestration is important and how it can optimize customers’ digital experience.
What is identity orchestration?
With the help of identity orchestration, businesses can quickly create and manage dynamic user journeys for identity and access management.
To do this, automated workflows must be created for a variety of identification use cases, including fraud detection, identity verification, authentication, and authorization. Compared to the conventional hard-coded methods, orchestration offers a quicker and more flexible method of delivering change.
Why is identity orchestration important?
Identity orchestration is all about user experience and security, assisting you in determining whether you can provide your users with tailored experiences while protecting their data. What’s advantageous to your staff and consumers is also beneficial to your business.
Issues with outdated identity and authentication point solutions that weren’t made for modern use cases, making securing digital identities more difficult than ever. Achieving adaptable identification experiences is a difficult goal given that the majority of current identity and authentication systems are a complex web of ill-integrated software and API services.
What are the components of an orchestration platform?
So, how can businesses without a lot of resources adopt orchestration? How can they ensure that every channel and point of contact with customers is seamless?
Companies must first establish a single strategy for managing identities and authentication by dismantling current silos. To deliver a consistent and tailored experience, an orchestration platform combines many elements of the employee and customer journey.
Registration and Login
Identity orchestration, besides focusing on security, enables companies to find the best way for a smooth registration and login experience for their users. Adopting orchestration can help in the following ways:
- Use numerous methods to quickly verify users, such as email, phone number, and physical address.
- Integrate identity-proofing solutions with ease. For example, you may provide physical documentation and a picture.
- Automate the detection of additional possibly fraudulent behavior and the checking of IP addresses.
- Use auto-fill forms to make the registration process easier and more secure. You can do this by leveraging third-party identity providers like banks.
Many features are analyzed from third-party sources and service providers to verify identity. In addition, the level of risk connected with the transaction or action must be taken into account.
Financial services, payments, and other heavily regulated environments require robust solutions that can perform a variety of actions. Technology that verifies people based on credit checks, income verification, bank account information, social security numbers, and other factors can be implemented with the aid of orchestration.
The frequency of data breaches and account takeovers (ATO) has increased, necessitating stronger account protection. According to statistics on data breaches, the average cost of a breach rose from $4.24 million in 2021 to $4.35 million in 2022, which is a 2.6% rise. However, the average cost of a data breach for firms that provide vital infrastructure has climbed to $4.82 million. To stop fraudsters from opening new accounts and committing cybercrime, it is essential to make sure your accounts are safe.
The First Generation of Identity Orchestration
Only a small number of significant banks and digital enterprises currently see identification as a strategic component of their company. They have invested millions of dollars in building their in-house orchestration tools, as well as leveraging many point vendors’ limited workflow and hub capabilities. This strategy was successful in that it resolved the issue (perhaps momentarily). It utilizes more advanced identity proofing, authentication, and fraud detection tools fast, however, it slows down the time to market.
Consumers must make their way through a variety of identity touchpoints every day. They frequently turn to competitors with superior user experiences, leave shopping carts, and/or refuse to sign up for new services out of dissatisfaction. Make no mistake—people usually judge the quality and reputation of a brand based on their online experiences.
Security is important, but the user experience comes first. Organizations must be able to provide advanced authentication and authorization procedures to prevent reputational damage and the surge in cyberattacks and fraud.
Interesting Related Article: “A Guide To Improving The Customer Experience “