Before the widespread adoption of digital technologies, identity authentication primarily relied on usernames and passwords, sometimes supplemented by devices or email accounts. However, with advancements in digital technologies, the landscape of identity authentication is shifting away from traditional passwords.
Digital identities are likely to replace traditional password-based systems. This evolution highlights the need to explore current trends and future directions in authentication methods, focusing on the shift towards more advanced and secure technologies.
Biometric authentication and digital IDs, including fingerprints, facial recognition, and smart cards, are emerging as robust alternatives to traditional passwords. These methods enhance security, resist phishing attempts, and ensure access is limited to authorised users.
Advanced encryption protocols further safeguard against identity theft and unauthorised access; thereby, strengthening the overall security framework of digital identities.
Mr Peter Kawumi, the regional managing director, Interswitch East Africa, says it depends on how you understand digital identity.
Historically, authentication for financial transactions relied on signatures. With the advent of the Internet and mobile banking, passwords became the norm. Today, some financial institutions have transitioned to requiring passwords or facial recognition for authentication.
“This is a digital identity that confirms who you claim to be. It may eventually replace passwords, but it is important to understand the perspectives of those who grew up in Sub-Saharan Africa,” Kawumi says.
If he were to ask his mother or grandmother to use facial recognition to prove their identity, they would probably prefer using their signature instead.
“It will take time, especially since our population is still young. The impact on how people identify themselves will take time to manifest fully. Perhaps it will replace passwords when our young population has matured. The question is when this transition will occur - will it happen within the next five to 10 years?” He wonders.
Advantages
Kawumi says it is difficult to forge a fingerprint on his face, especially with modern technologies. It is significantly more difficult than forging a signature or learning his PIN for his ATM card, providing a lot more security.
“We expect that fraud will significantly decrease in sectors like financial services and healthcare as both the suppliers and consumers understand how to use this technology,” he explains.
Digital identities are not only relevant to the financial sector but also other sectors. For example, in the education sector, a digital identity can verify the identity of teachers and students, reducing exam malpractice and fraud.
While there are many advantages to using emerging technologies, he quickly notes that there are challenges in obtaining consumers’ confidence in sectors like finance, healthcare, and education.
Investing in consumer education is essential to build trust in new authentication methods and ensure that the cost of these services remains affordable for end users.
“The adoption of these technologies is inevitable. The benefits may outweigh the drawbacks, especially in reducing fraud, which is a significant issue for the financial sector. The main task is to strike a balance and bring consumers along with us without confusing or scaring them. We need to ensure that these solutions are utilised and provide value to the consumers and not just the sector providers,” Kawumi adds.
According to Mr Douglas Kikonyogo, a tech expert, at TechJajja, digital identity refers to the online representation of a person, comprising various pieces of information that identify an individual in the digital world, such as usernames, passwords, biometric data, and other credentials.
“We have been exposed to a world where digital identities are essential. Right from the Covid-19 pandemic, which greatly accelerated the shift towards online interactions and transactions, digital identities are more relevant than ever. They allow us to securely access a wide range of digital services, from banking and healthcare to social media and e-commerce,” Mr Kikonyogo says.
Digital identities have the potential to replace traditional passwords as the primary means of authentication. Passwords have well-known vulnerabilities, as they can be easily forgotten, stolen, or compromised.
He, however, notes that digital identities leveraging biometrics like fingerprints or facial recognition provide a more secure and convenient way to verify one’s identity.
With digital identities, the focus shifts from remembering complex passwords to simply presenting your unique biometric data. This, Kikonyogo says, enhances security and user experience, making digital identities a superior alternative to traditional password-based authentication, improves user experience and convenience, enablement of seamless access to digital services, and potential for greater privacy and control over personal data.
However, some potential disadvantages range from concerns around data privacy and the centralisation of personal information, the potential for biometric data to be compromised or misused and the challenges in ensuring universal accessibility and inclusion.
Protecting digital identities
Kikonyogo cites ways the public can protect their digital identities such as using strong, unique passwords and enabling two-factor authentication wherever possible, being cautious of phishing attempts and other social engineering tactics, monitor their online accounts and credit reports for any suspicious activity.
In addition, limit the amount of personal information shared online and consider using a digital identity management service.