Blog

Author

Experts speak on today’s key challenges in digital identity solutions

The digital identity space is at a critical turning point. As technology advances and threats multiply, identity systems must adapt. Not just to protect users, but also to enable better, more inclusive experiences. At the recent Future Identity Finance and FID Fraud & FinCrime event in London, 19th March, leaders from Keyless, Ping Identity, HID Global and Plaid shared their perspectives on some of the major obstacles facing digital identity today – and how we can tackle them together.

1. Strengthening authentication and rebuilding trust

Dean Stevenson, Pre Sales Director at Keyless, focused on what many see as the foundation of digital identity: authentication. According to Dean, legacy credentials (passwords, PINs, and security questions) remain among the biggest security gaps in digital systems today. These outdated methods are vulnerable to phishing, credential stuffing, and other attacks, and they place an unfair burden of security on the end user.

To address this, Dean emphasised the importance of developing authentication solutions that are not only secure but also seamless and user-friendly. The goal is to reduce friction without compromising protection, so users can access services easily while remaining safe from fraud. Dean also highlighted the critical need to re-establish the link between digital credentials and the real-world person behind them. Too often, credentials exist in isolation, creating opportunities for fraudsters to exploit them. By using technologies like biometrics, cryptography, and passwordless authentication, the industry can rebuild trust in the digital credentialing process.

2. Identity as a strategic business asset

Adam Preis, Director of Product Solution Marketing at Ping Identity, offered a broader view of digital identity as a strategic enabler. In today’s landscape of rising fraud, scams, and AI-driven attacks, identity is no longer just about protecting access or satisfying compliance requirements. Adam argued that identity is now central to business success, as it shapes customer experiences and enables competitive differentiation.

Companies are increasingly recognising this at the board level, dedicating resources and investments to modernise their identity infrastructure. A strong identity strategy not only protects users but also builds customer loyalty, drives market share, and supports growth. Whether through centralised systems that offer tight organisational control or decentralised approaches that give users more autonomy over their identities, modern identity solutions are a key lever for innovation and business performance.

3. The challenge of brand visibility for identity providers

Paul Jones, Senior Director of Strategy and Product Delivery at HID Global, highlighted a challenge that is less technical but equally significant: brand awareness. HID is a major player in physical security, known globally for technologies that secure access to buildings and facilities. However, Paul noted that HID’s reputation has not fully extended into the digital identity and authentication space.

Despite its size and capabilities, HID is not yet widely recognised for its digital authentication solutions. Paul stressed that building visibility and shifting market perceptions are crucial for the company’s growth. HID aims to move beyond being seen solely as the brand that provides physical access to being associated with securing digital workspaces and data. Raising awareness of these capabilities and effectively telling the HID story in the digital identity space will be essential in achieving that goal.

4. Financial inclusion, regulation, and the user experience

Liam Gray, Account Management Lead (Europe) at Plaid, identified three interconnected challenges shaping the future of digital identity in financial services.

The first is financial inclusion. Current credit systems tend to favour individuals with well-established credit histories, leaving those with thin or no credit files – such as young people or recent immigrants at a disadvantage. Liam explained that open banking and alternative data can help address this imbalance by giving lenders a more comprehensive view of a person’s financial behaviour, ultimately broadening access to credit.

The second challenge is the ever-changing regulatory landscape. As data privacy laws and financial regulations evolve, companies must be able to adapt quickly and effectively. Liam emphasised that success depends on not just complying with new rules but using them as an opportunity to build trust and competitive advantage.

Finally, Liam discussed the importance of creating seamless, positive user journeys. It is not enough for identity systems to secure transactions; they must also deliver an intuitive, frictionless experience that encourages users to return. Plaid plays a key role in supporting partners to streamline these journeys, but as Liam pointed out, the effort requires collaboration across the entire ecosystem to truly deliver the best possible outcomes for end users.

The path forward?

While the challenges in digital identity are varied, spanning technology, strategy, brand positioning, inclusion, and compliance, they are all part of a shared mission: to build a digital identity ecosystem that is secure, inclusive, and transformative.

Overcoming these challenges will require innovation, collaboration, and a user-first mindset. By modernising authentication methods, positioning identity as a growth driver, enhancing brand trust, expanding financial inclusion, and staying ahead of regulatory change, the industry can shape a future where digital identity empowers individuals and organisations alike.

P.S. Curious about what’s next for digital identity? You don’t have to wait until next year – join the conversation at the Future Identity Festival on 10th – 11th November at The Brewery, London.

Author