3 strategic actions for leveraging digital identities to transform customer experiences


Neha Kodi

NA Senior Business Designer • Strategy

Digital identities, also known as online identities, are digital representations of who you are. These identities contain vital personal information, such as your account names and even your medical history. Unlike physical ID cards, there is no application or sign-up process to obtain a digital identity. Everyone who uses the internet in any capacity has some form of digital identity. The landscape of digital identity technologies is driving new verification capabilities, with significant advancements influencing various industries. In the financial sector, for example, companies like Mastercard are pioneering biometric cards incorporating fingerprints for enhanced security for users. Another example is the healthcare industry, where the SMART Health Cards framework has been developed in the U.S., which streamlines patient identification and health records access, enhancing productivity. In the retail domain, Amazon One’s palm recognition technology is revolutionizing the shopping experience by offering a unique blend of convenience and security.

These developments suggest a growing trend towards seamless, secure, and efficient identity verification processes. In light of these developments and through our collaborative efforts with various companies, we have collected three key strategic actions for the effective implementation and adoption of digital identities, aimed at transforming customer experiences for the better.

/ Reduce Device or App Reliance

In a previous article, we shared how convenience is the new innovation for customer experiences in 2024. Following this trend, companies should aim to minimize reliance on additional devices or apps for digital identity verification. To achieve this, leveraging built-in smartphone features, such as biometric sensors for fingerprints or facial recognition, offers seamless integration into users’ daily routines, negating the need for external hardware. Furthermore, implementing web-based verification processes allows for universal access across devices without the requirement of downloading dedicated applications, thus broadening accessibility and reducing friction for users. Companies can also utilize QR codes for identity verification in physical spaces, which users can scan using their smartphone cameras to access secure, web-based verification portals. This approach not only simplifies the process but also leverages the ubiquitous nature of smartphones, ensuring a wide-reaching, user-friendly method of identity verification that aligns with modern technological habits and preferences.

/ Authenticate Identity Verification

Companies can enhance the integrity of digital identities by incorporating Multi-Factor Authentication (MFA), which adds layers of security by requiring users to provide evidence of their identity from two or more verification methods. This could include something the user knows (a password), something the user has (a smartphone), and something the user is (biometric verification). Blockchain technology presents another avenue for enhancing authenticity, providing a secure, decentralized ledger that is resistant to tampering. By storing digital identities on a blockchain, companies can create an immutable record of identity verification, significantly reducing the risk of fraud. Continuous authentication methods, which monitor user behavior post-login for anomalies, can also help maintain the authenticity of a user’s identity throughout their session, offering ongoing protection against unauthorized access.

“Minimizing device and app dependence for identity verification isn't just convenient; it's a leap towards universal accessibility and seamless user experiences, leveraging the power of smartphones and web-based technologies.”

Neha Kodi

NA Senior Business Designer • Strategy at propelland.

/ Assess Background and Risk at Enrollment

Organizations should implement comprehensive Know Your Customer (KYC) protocols, utilizing digital solutions to conduct thorough background checks. This involves verifying personal details against global databases to screen for any criminal history, financial fraud, or other red flags. Adaptive authentication techniques can further tailor the verification process based on the risk associated with a user, adjusting the level of scrutiny based on the sensitivity of the transaction or the user’s behavior. Additionally, employing behavioral biometrics as part of the authentication process can provide a dynamic assessment of risk, analyzing patterns in how the user interacts with their device to detect any deviations that may indicate fraudulent activity. Through these strategies, companies can establish a robust framework for assessing and managing the risks associated with digital identities, ensuring a secure and trustworthy environment for both customers and employees.

The adoption and implementation of digital identities present a unique opportunity for businesses to enhance customer experiences. The strategic actions mentioned above will not only help your company bolster security and trust but also streamline interactions, making digital spaces more accessible and engaging for users. As we continue to navigate the complexities of the digital landscape, it is clear that the thoughtful integration of digital identities will be crucial in shaping the future of customer engagement. At propelland, we can help your company embrace these advancements, allowing you to stay at the forefront of innovation and ensuring you are well-equipped to meet the evolving needs and expectations of your customers in the digital age.

Get in touch with our team and let’s embark on a journey toward digital transformation.