While consumers value digital identities for access to new services, they remain concerned over security risks and struggle to find a balance between the two
SAN DIEGO, Calif., Nov. 20, 2019 — Mitek (NASDAQ: MITK), a global leader in mobile image capture and digital identity verification software solutions, today announced the findings from its new report, Digital Identity 2020 – Drivers and Challenges. The report examines consumer’s understanding and use of digital identity, and the trends impacting future adoption.
The report found that while only 25% of consumers say they fully understand digital identity, 65% report using it every day – indicating early stage confusion about what it really is. Moreover, while respondents value the convenience and accessibility that digital identities provide, a majority are still wary of potential security risks. Together, the findings show that while consumers appear ready to further embrace the convenience of digital identity, misgivings around the specifics of the technology and the risk of having personal data exposed remain a barrier to broader adoption.
“As digital transactions become more pervasive in our everyday lives, consumers are increasingly turning to their digital identities to validate and secure the accounts they use to bank online, transact with apps and interact with each other,” said Max Carnecchia, CEO of Mitek. “The problem, however, is that while consumers show a growing appetite for digital convenience, many users have a different understanding of what digital identity actually means and remain concerned over the protection of their information.” He advises that as businesses look to adopt digital identity solutions into their own practices to meet this demand, they will need to invest in consumer education initiatives to better inform their users of its application and how they are keeping personal identity data secure.
The report also found that consumers are especially interested in applications for digital identities within the gig economy, setting the stage for the next frontier of digital interactions. A majority of consumers are already actively using online marketplaces for shopping, ridesharing and banking — but the next generation of offerings will bring digital identity into the home. For instance, 48% of users show a desire to use digital identity for in-home services such as family care series, delivery and cleaning services.
Additional highlights from the report include:
Consumers enjoy benefits, but want control over what information is shared with companies:
While consumers enjoy the rewards and benefits of sharing their data, 88% still want to maintain control over what personally identifiable information is provided to companies
Faster and better access to services is the primary driver of digital identity adoption:
79% of respondents agree that having their identity digitized would be faster than using a physical ID in the future, and 75% agree that having a digital identity would provide easier access to services than a physical document
Biometric adoption is in its early stages:
Only 17% prefer to verify their identities through biometrics, despite the technology's growth, and a majority of consumers prefer more traditional verification methods they believe are more secure
To read the full Digital Identity 2020 – Drivers and Challenges report, click here.
Mitek, in partnership with OpinionRoute, surveyed 1000+ respondents located in the United States and over the age of 18 on their awareness and use of digital identity. The survey was fielded from July 9-16, 2019, and included 40 questions on respondent’s awareness, comfort level, usage, benefits and concerns about digital identity, as well as demographic information on respondent’s location. Results were collected with an overall margin of error of +/- 3.1% at a 95% confidence level.
Mitek (NASDAQ: MITK) is a global leader in mobile deposit and digital identity verification solutions built on the latest advancements in computer vision and machine learning. Mitek’s identity verification solutions enable an enterprise to verify a user’s identity during a digital transaction, which assists businesses operating in highly regulated markets to reduce financial risk and meet regulatory requirements while increasing revenue from digital channels. Financial services, marketplaces and other organizations around the world use Mitek to reduce friction creating the digital experiences their customers expect. Mobile Deposit® and Mobile Verify® are used by millions of consumers for check deposit, new account opening and more. The company is based in San Diego with offices in New York, London, Amsterdam, Barcelona, Paris and St. Petersburg. Learn more at www.miteksystems.com.
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LEWIS for Mitek