Digital Identity

Using Digital Identity

Digital identity is the lynch pin in each of the activities we have just discussed, along with a wide variety of other activities important to business. Consequently, how your organization manages digital identities will have a great impact on whether you are constantly fighting problems brought on by a lack of attention to managing identity, or whether you are exploiting opportunity enabled by a flexible and rational digital identity infrastructure.

The common ATM machine is a great example of how digital identity enables new business opportunities. Before ATMs were invented, a bank's customers took care of their banking needs by presenting pieces of paper to a human teller. The papers included instructions to the bank (e.g., deposit slips), cash, checks, and other financial instruments. Unless the teller personally knew the customer, the customer usually also presented some kind of identity credential, such as a driver's license. The teller was able to verify the identity of the customer and the validity of the various pieces of paper.

The ATM was possible only because banks created a means of identifying their customers digitally. We're all familiar by now with the debit card and PIN that ATMs require from us before service. The card carries identity information and the PIN tells the bank that the person presenting the identity is entitled to use it. With the advent of a digital identity infrastructure, banks no longer needed a human in the loop to verify ...