On April 4, 2022, the Federal Deposit Insurance Corporation (FDIC) and the Financial Crimes Enforcement Network (FinCEN) of the USA organized a ‘Digital Identity Tech Sprint’, where eight contesting teams demonstrated their solutions to help measure the effectiveness of digital identity proofing. Note that digital identity proofing is a process used to collect and verify information to confirm that the identity is unique, existent, and linked to a real person. This is particularly important when individuals conduct financial activities remotely.
The participating teams had to develop a scalable, cost-efficient, risk-based solution to evaluate the effectiveness of digital identity proofing. Ideal solutions were expected to increase efficiency and account security, decrease fraud and ML/TF, make technology accessible, and build customer confidence in the digital banking environment. The solutions that the participating teams proposed involved developing tools to measure the effectiveness of identity proofing systems, developing a scoring methodology for remote identity proofing, and/or working on an identity provider platform.
Many solutions highlighted the individual roles of public and private sectors as well as public-private partnerships. Some participating teams utilized technologies like zero knowledge proofs and multi-party computation for secure data sharing. Many solutions also suggested the use of emerging digital identity standards, such as the Worldwide Web Consortium (W3C) Verifiable Credentials and ISO compliant mobile driver’s licenses.
Source: FinCEN, USA