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EDITOR’S QUESTION
MARIUS COETZEE,
CEO OF IDECO
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B
anking as we knew it is on its way out,
with a bold new world of seamless,
cardless, cashless financial systems set
to change the way people live and transact
forever. But this next level banking depends
entirely on the ability to create a trusted link
between the physical and the digital world.
Innovation in banking is taking hold around
the world and South African financial
institutions are not lagging. Major local
banks and financial services firms are rapidly
moving to use next generation technology
to innovate and improve the customer
experience, harnessing facial recognition,
voice recognition and biometric scanners to
verify customer identity and authenticate
transactions; as well as Blockchain systems
to secure and track transactions. In future,
consumers will enjoy ‘ERA’ – effortless,
reliable and accurate – authentication,
with no need to remember their identity
document, bank card and proof of residence
in order to transact.
These developments are bringing consumers
new levels of financial services and greater
convenience through mobile banking,
cashless banking, self-help kiosks, cross
border payments and faster inter-bank
transfers. With any innovation comes a
certain level of risk, but since innovation
drives a competitive edge, this progress
cannot – and should not – be slowed.
Banks may be taking the lead in this brave
new world, but soon, digital identity will
become the key to unlocking all transactions,
services and government processes.
Digital identity will ultimately enable
everyday life, promising convenience, lower
cost and greater trust in processes. But this
can only be achieved when digital identity is
effectively linked with physical identity and
underwritten by an oracle who maintains
this trusted identity, to ensure that the
www.intelligentcio.com
processes of engaging is seamless, trusted
and accurate. identity, so facilitating transactions with an
approved acquirer.
As digital identity becomes the most critical
factor in unlocking a world of services
and transactions, it becomes increasingly
important to ensure that this digital identity
is a trusted one. Identity 4.0 therefore seamlessly
establishes trust by linking the identity
owner, the acquirer and the issuer in a
single on-chain transaction. There can be
no room for error, since once captured and
authenticated, flawed identity data could
exist within financial services Blockchain
environments forever.
Ensuring that there is a trusted link between
the physical and the digital identity
depends on an Identity 4.0 environment,
in which world-class, infallible biometric
systems accurately capture biometric data,
impenetrable algorithms ensure this data
is secured and trusted custodians serve
to safeguard the data and authenticate
The growing importance of digital identity
as a valuable asset is reflected in moves
internationally to call for sovereign identity,
in which individuals seek to establish and
‘own’ their identity in the digital world.
INTELLIGENTCIO
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