Daon Forecasts Expanding Digital Identity Ecosystem in 2022 Predictions

Daon is gazing into the crystal ball with a series of five predictions for the biometrics and identity industry in 2022. In that regard, the company believes that many of the trends that have been observed during the pandemic will continue and even accelerate in the coming year.

The growing ubiquity of digital identity solutions is foremost amongst those trends. Daon noted that the financial industry has become increasingly digital, to the point that 41 percent of retail banking customers in the US in 2021 engaged primarily through digital channels. That number is expected to climb above 50 percent in 2022. At the same time, digital onboarding and authentication tech will spread to other industries (including healthcare) as consumers start to expect the same conveniences in other areas of their lives.

On that front, Daon argues that businesses that deliver a better user experience will ultimately come out ahead in a crowded marketplace. To deliver, those companies will need to find a way to leverage the biometric templates collected during onboarding to enable a smoother authentication process beyond that initial interaction. (Daon, of course, pitched its improved IdentityX web application as an example of such a solution.)

Daon’s second prediction builds on the first, insofar as it suggests that more and more companies will in fact try to link identity proofing to authentication to build a strong root of trust with individual customers. The increased adoption of such technology will help reduce fraud and support a more streamlined customer experience.

The next three predictions are a response to COVID-19. To begin with, call center volume spiked early in the pandemic, and many facilities are still struggling to deal with employee burnout and a high number of calls. Daon predicts that more call centers will use voice biometrics instead of knowledge-based authenticators to reduce call times. Other call centers will automate their operations with an Interactive Voice Response platform, and use voice recognition to authorize a greater number of transactions without any human agent.

2022 will also see growing support for multi-factor biometric systems. Daon suggests that that is a response to mask mandates, which limit the utility of facial recognition as a lone modality. As a result, businesses will start to offer support for multiple modalities to provide customers with another option if one form of authentication is difficult to use in a given situation.

Finally, Daon believes that more physical venues will start to use mobile applications to simplify the health checks that were introduced during the pandemic. An app like Daon’s VeriFLY allows people to consolidate all of their documents in one place, and makes it easier for venue operators to screen people while still maintaining a safe environment.

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February 3, 2022 – by Eric Weiss