More than just a trend: Why proving digital identities is so important
Why is it also important to be able to prove a digital identity online? How does it work? The latest article from IFH Cologne reveals exactly that. Read more here!
In the analog world, it’s easy to prove your identity: You show your ID card and can prove beyond doubt that you are indeed who you say you are.
In digital commerce, this process is more complex. A business partner is not physically present and thus cannot present an ID or show his or her face. A verifiable digital identity is therefore required, with the help of which an online user can prove that the information provided is true. This is the only way for the requested company to have correct customer data and to protect itself and its business partner from fraud. The loss in online trade due to identity fraud should not be underestimated: Every year, this results in damage amounting to several billion euros. Even more dramatic, however, is the loss of opportunity costs, which can hardly be quantified, because verification checks in B2B business processes are only being digitized hesitantly.
Proof of digital identity is provided via verification processes that must meet high security standards. This often makes such ident procedures complicated and time-consuming – especially because the procedure has to be repeated for each subsequent login. This is at the expense of user-friendliness and leads to a higher purchase abandonment rate. However, if a company forgoes such verification procedures, it sometimes runs high risks.
Companies are therefore faced with several challenges at the same time: On the one hand, they have to offer online users fast and smooth business processes so that they don’t just make a one-time purchase. On the other hand, digital identities require secure management and must offer an appropriate level of security. These are circumstances that make it difficult to establish a trusting customer relationship online.
Special feature B2B business: information about person and company
Especially in B2B business, where purchase on account is one of the most popular payment methods, the proof of digital identity is not only about reliable information about the person, but also about the company:
- Is a user really the person he or she claims to be?
- And does this person really represent the specified company?
At the latest since the corona pandemic, companies are increasingly digitizing their business processes – regardless of whether they involve purchasing, registration, factoring, leasing, credit, onboarding or supply chain processes. How convenient would it be to already have all the necessary proof of a person’s identity and simply outsource the verification process? And how much more convenient would it be for the online user:in to verify themselves only once with a trusted entity and be able to use that proof of identity over and over again?
Like a digital identity card: CrefoTrust
The CrefoTrust solution from Creditreform pursues precisely this idea – to create a digital proof that securely verifies identities online and also checks and proves authorizations to represent. Similar to the PayPal principle, online users will in future only have to prove their identity once and will then be able to reuse it securely on other platforms – a digital identity to go, so to speak, which can be used online at any time.
Online-Event B2Best Digital 2021
Would you like to learn more about the topic of “Digital Identity”? Register for the online event B2BEST DIGITAL 2021 on September 9, 2021, starting at 2 pm. Creditreform, along with other speakers from Bosch and Zalando Payments, will provide exclusive insights into practice-oriented innovations and developments around digital identity in B2B.
You want to learn more about the topic? Visit the IFH Cologne page or read the original article here!