# The Future for Banks and Digital ID Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-10-18 Category: BANKING Category URL: https://financedigest.com/category/banking Meta Title: Introduction to Digital Identity: What is it? Meta Description: Learn what digital identity is, why it's targeted by thieves, and how to protect it in today's digital world. Secure your online presence now. URL: https://financedigest.com/the-future-for-banks-and-digital-idhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/woman-showing-display-of-her-new-touch-mobile-cell-phone-sbi-300056293-1736837551571-compressed.jpg) Identity thieves typically target one’s digital identity when they want to steal your identity. But what is digital identity? Why do they want it? How do you protect it? And what is the future for [banks and digital](https://www.financedigest.com/how-to-enhance-banking-services-with-digital-performance-intelligence.html "HOW TO ENHANCE BANKING SERVICES WITH DIGITAL PERFORMANCE INTELLIGENCE") ID, given the sheer volume of attacks by identity thieves? **An [Introduction to Digital](https://www.financedigest.com/how-will-the-introduction-of-digital-banking-impact-customer-perception-and-overall-loyalty.html "HOW WILL THE INTRODUCTION OF DIGITAL BANKING IMPACT CUSTOMER PERCEPTION AND OVERALL LOYALTY?") Identity** [What is digital identity](https://www.jumio.com/what-is-a-digital-identity/)? Your [digital identity](https://www.financedigest.com/why-an-orchestrated-digital-identity-strategy-is-vital-for-financial-organisations-in-fighting-fraud.html "Why an orchestrated digital identity strategy is vital for financial organisations in fighting fraud") is more than your social media profiles, though that is part of the equation. It also includes your search history, your purchase history, your interaction with apps and your phone records. It includes your credit history and accounts, as well. For example, your digital identity includes your credit card number and the login information to your [online banking](https://www.financedigest.com/dutch-online-bank-bunq-applies-for-u-s-banking-licence.html "Dutch online bank Bunq applies for U.S. banking licence"). It also includes the personal information like Social Security Numbers, driver’s license numbers and birthdate used to open new [credit cards and take out new loans](https://www.financedigest.com/6-reasons-to-take-a-car-loan-from-a-credit-union.html "6 Reasons to Take a Car Loan From a Credit Union"). This is why digital identity protection is intimately tied to the [financial sector](https://www.financedigest.com/how-can-the-financial-sector-safely-use-the-iot.html "How can the financial sector safely use the IoT?"). **Why Do Businesses Need to Protect Consumers’ Digital Identities?** For one, you can’t afford to have the [biggest headline related to your company being a data](https://www.financedigest.com/open-data-represents-the-biggest-challenge-to-banks-in-a-generation.html "Open data represents the biggest challenge to banks in a generation") breach that affected all of your customers. Furthermore, you can’t afford to [pay the claims associated to lawsuits and canceled orders due to a massive](https://www.financedigest.com/in-inflation-hit-germany-massive-strike-over-pay-to-cripple-transport.html "In inflation-hit Germany, massive strike over pay to cripple transport") data breach.  And your customers’ [data is the lifeblood of your business](https://www.financedigest.com/reckon-introduces-link-to-bank-data-to-help-small-businesses-streamline-the-reconciliation-process.html "Reckon introduces link to bank data to help small businesses streamline the reconciliation process "). If someone can steal the customers’ [credit card](https://www.financedigest.com/what-happens-to-credit-card-debt-when-you-die.html "What happens to credit card debt when you die") numbers, they could compromise your business in other ways. This could be anything from ransomware installed on your server to malware on the website that scares [away would-be customers who get a warning](https://www.financedigest.com/finance-industry-one-court-case-away-claims-management-company-onslaught-quadient-warns.html "Finance Industry Is “One Court Case Away” from Claims Management Company Onslaught, Quadient Warns") when they follow links to your site. **How Can Businesses Protect Digital Identities?** You can start by [ensuring that your website and backend software are secure](https://www.financedigest.com/with-greater-freedom-comes-heightened-risk-how-to-help-ensure-consumer-data-remains-secure-in-an-open-banking-system.html "With Greater Freedom Comes Heightened Risk: How to Help Ensure Consumer Data Remains Secure in an Open Banking System"). Keeping the software up to date and hiring IT [security](https://www.financedigest.com/winning-the-security-race-how-financial-services-can-keep-pace-with-cybercriminals.html "Winning the security race: how financial services can keep pace with cybercriminals") experts to keep it safe are a good start. Don’t assume that your web hosting [service is protected](https://www.financedigest.com/protecting-the-uk-financial-services-sector-from-cyberattacks-now-and-in-2023.html "Protecting the UK financial services sector from cyberattacks now and in 2023") your website. Some of them simply host the site and won’t even notice if a hacker installs Trojans that load whenever someone loads your website. There’s a delicate [balance between identity verification and privacy](https://www.financedigest.com/balancing-cybersecurity-and-individual-privacy-new-whois-data-protections-in-2018.html "Balancing Cybersecurity and Individual Privacy – New Whois Data Protections in 2018"). After all, many of your would-be [customers don’t want to hand over a ton of information to buy a product or service](https://www.financedigest.com/video-collaboration-is-pushing-the-boundaries-of-the-customer-experience-in-financial-services.html "Video Collaboration is pushing the boundaries of the customer experience in Financial Services"), especially if it will be used to spam them. You can reduce these [fears by promising not to advertise](https://www.financedigest.com/alphabets-miss-fans-inflation-fears-across-digital-advertising.html "Alphabet’s miss fans inflation fears across digital advertising") them without their consent and not sharing their information with other retailers. For example, you should send a thank you for their [order as confirmation you received](https://www.financedigest.com/glastons-interim-report-1-january-31-march-2018-orders-received-grew-23-comparable-operating-profit-at-previous-years-level.html "Glaston’s Interim Report 1 January – 31 March 2018: Orders received grew 23%, comparable operating profit at previous year’s level") it and let them know when the product has been shipped. A tactful compromise between marketing and service is asking them to review the delivery of the item while giving them the option to review the product itself. When you [integrate “know your customer” protections into payment verification](https://www.financedigest.com/what-is-id-and-verification-and-why-is-it-such-an-integral-part-of-digital-life.html "What Is ID and Verification and Why is it Such an Integral Part of Digital Life?"), educate consumers. Tell them that this prevents identity theft, so it is worth the additional five seconds to take a photo of themselves or perform a liveness check. You can verify that contact [email addresses](https://www.financedigest.com/how-to-create-a-professional-email-address.html "How to Create a Professional Email Address") and phone numbers are correct by requiring the customer to confirm they received a notification before you can process their order. However, this [approach only confirms](https://www.financedigest.com/britains-co-op-bank-confirms-tsb-approach.html "Britain’s Co-op bank confirms TSB approach") they didn’t enter a fake email or phone number, and it won’t prevent someone who has the victim’s phone or contact information from entering contact methods they control. ### **This is a Sponsored Feature** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---