By Eric Haller, Executive Vice President & General Manager, Identity, Fraud & DataLabs at Experian
As more people become accustomed to the security and convenience of the digital channel, digital transactions including mobile wallet payments are continuing to increase. According to Experian’s latest Global Insights Report, 38 percent of consumers expect to increase their online activity in the next 12 months and 60 percent of consumers are using a universal mobile wallet to make digital payments.
The rapid acceleration of digital transactions has been an even higher priority on data-driven digital identity solutions. In today's digital world, customers are represented by dozens of identities from different devices and locations. As a result, effective digital identity practices are more important to business success than ever. They are vital for presenting a compelling first contact point to customers, protecting sensitive data, enabling secure transactions and transforming business processes. The obstacle that business face is applying the necessary protocols while maintaining a positive customer experience.
The good news is that businesses are investing more resources around the digital experience and digital identity. In fact, 9 in 10 businesses have a strategy in place related to the digital customer journey, 59 percent of businesses are investing in advanced analytics and AI and 51 percent of businesses are investing in fraud detection methods or software to reduce friction in the customer experience.
According to Forbes, Gen Z consumers will make up 31 percent of the global population in 2021. This generation will have a much higher dependency on cutting-edge, automated and efficient technologies and services. As a result, the demand for digital payment systems will see continued rapid growth in the coming year.
Security is the most crucial element when it comes to mobile payments. In order to detect all of the possible threats within seconds, businesses are now using the help of machine learning. As a result, it’s becoming much easier to automate processes and decision making. Technology improvements are allowing a much broader capture of real-time data, while facilitating real-time, large-scale data processing and analysis. These advances are opening new pathways to automation and machine learning that were previously available only to leading technology firms.
Digital identity solutions and the forward-looking businesses that support this evolution using AI and ML solutions will help reduce fraud and enhance the user experience in meaningful ways as consumers continue to prefer digital transactions.
At Experian, we strive to master identity as a concept and combine it with our partnerships and industry-leading proprietary platforms to provide businesses with a solution that allows for both convenience and security.