ID Verification - KYC

A Look Ahead: What 2024 May Hold for the Identity Management Industry

Jason Howard

January 20, 2023
Woman looking at a screen analyzing key trends in Identity Technology
Table of Content

As we near the end of another journey around the sun, it’s a time to not only reflect, but look ahead. 2023 was filled with emerging trends and new innovations in the world of identity management, verification and authentication. With 2024 just around the corner, here are some of our predictions for the identity market over the next 12 months. 

Identity and New Product Innovation

The continued evolution of how we manage digital identity will not just affect user authentication and verification, but also power new product innovation. For example, think of the “Just Walk Out” technology developed and implemented by Whole Foods, an Amazon subsidiary, wherein a customer who has registered their biometric data with the company can simply walk out of the store with items without interacting with a point of sale terminal by paying using palm recognition technology. 

In the near future, biometrics or other technology could be used to make the airport travel experience even more digital and seamless. Digital identity methods could also be involved in voting. The key in any new identity product or service is ensuring a smooth customer experience while also having the proper protocols in place to mitigate fraud and cybercrime. 

Embedded Payments and Everywhere Ecommerce

The rise of embedded payments and connected commerce, which make payments seamless and “invisible” to the consumer, will continue to change how we manage identity. This is especially true as e-commerce and the digital economy becomes more experiential and shopping experiences evolve. Consumers don't have to specifically go to a website or app to shop; think about trends such as social and live-streaming commerce.

For businesses, financial institutions and other payments providers, this means they have to be able to accurately identify who they are interacting with across the entire digital spectrum. It isn't as simple as a consumer coming to your website and entering payment information to purchase a product anymore. Now you must know everything about everyone who intersects with you in the digital realm, however they do so. 

A New Identity Infrastructure

One essential question that needs to be answered is how to build a new identity infrastructure to underpin all of the evolutions in digital identity. It is unlikely there will be one global infrastructure, so the key is getting different platforms to work with one another. Interoperability, user experience and security will be the key. 

Specifically, decentralized identity management networks will be crucial in fostering interoperability and compatibility across systems, while at the same time protecting consumer information and complying with all global data privacy laws. 

AI Powered Attacks Become More Prevalent – and Powerful

The impressive capabilities of generative AI such as Chat GPT have empowered malicious actors to craft sophisticated phishing attacks with highly convincing communication that lacks discernible red flags. 

As a result, the year 2024 is expected to witness a notable surge in both the sophistication and quantity of AI-generated phishing attacks. Traditional security awareness training will lose its efficacy, prompting organizations to explore alternative, more dependable methods for authenticating both internal and external users on their platforms. AI can also help fraudsters to bypass biometrics authentication systems, by using “deepfakes” to impersonate other faces. 

Looking Ahead: Embrace Change

Finally, I would say: do not be afraid of change. The rate of change happens quicker every year than the one prior to it. Embracing and adapting to change is crucial for the success and sustainability of any organization. Foster a culture that values learning and growth. This mindset helps people see challenges as opportunities to learn and grow rather than as threats.

It’s important to be nimble, flexible and have the ability to rapidly evolve. Nimble businesses are often more innovative. They can experiment with new ideas and quickly pivot if something is not working. This culture of experimentation and adaptation fosters creativity and continuous improvement.

From all of us here at Caf, to everyone reading, we wish you a healthy and successful 2024! 

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"A Look Ahead: What 2024 May Hold for the Identity Management Industry"