OLIMPIA

There is no denying that the world is undergoing a paradigm shift in the way people interact regarding communication, modes of production, forms of work, participation, information records and, certainly, in terms of identification.

The rise of technology presents challenges that imply the convergence of everyday processes on technological platforms, resulting in a greater amount of user data being stored in the cloud every day.

This means that any kind of interaction on digital platforms leaves a mark on who we are, what we think and what we want, which in turn brings a digital1 identity to life.

Not only this landscape offers opportunities but, as it offers benefits such as virtuality in service creation and process traceability, it also raises challenges when it comes to ensuring that whoever is on the other side of the screen is actually who they claim to be.

For this reason, the case of Fintech, understood as technological solutions around financial services, is a perfect example of digital identity’s transcendence in the XXI Century.

1 Torres Gastelú, Carlos Arturo & Lagunés Domínguez, Agustín. (2018).

Daniel Medina, CEO of Olimpia IT, is taking part in the transformation of nearly 1,500 companies by means of four fintech initiatives for biometric customer identification, e-contracts, e-payments and e-invoicing.

With this in mind, identification and validation tools such as biometrics, navigation information, online reputation data and, in general, every alternative that allows a person’s historical behavior on digital platforms to be recorded is increasingly relevant.

Any approach to a digital identity must implement high standards of security and validation, that vary according to the platform, and ensure the proper use of each user’s personal data.

In Colombia, the future becomes present regards the surge of biometric facial recognition platforms and the verification of identity documents as an opportunity for companies in the financial industry, specially Fintech, not to mention all industries.

One of the biggest problems digital platforms face in all economic sectors, and specially in financial services, is identify theft.

According to a study conducted by researchers from the Tank of Analysis and Creativity of ICT (TicTac), the Colombian Chamber for Informatics and Telecommunications (CCIT) and the Colombian Cybersecurity Capacity Center (C4) of the National Police of Colombia on cybercrime trends in Colombia, from 2017 to 2019, 52,901 complaints were filed for criminal activities, of which 8,037 were related to identity theft.

Additionally, the study also concludes that the main motivation of cybercriminals in Colombia is economic. Thus, identity theft makes up for 28 percent of the most common types of cybercrime.

In any case, it must be acknowledged that over the last five years, Colombia has made significant progress in creating mechanisms for in-person identity verification, with alternatives such as identity verification being integrated into the biometric database of the National Registry for Civil Status. The rise of Fintech and the digital transformation process of banks certainly allows for a new work environment for identity verification through digital media or non-face-to-face channels.

In this regard, the new dynamic reached by document verification on mobile devices has been well-received by the industry, as greater digital confidence is ensured through identity document verification (citizenship card, passport, among others).

This is an element that allows citizens to feel supported when digitalizing their identity and, to trust that the state and justice are in tune with this digital transformation.

Undoubtedly, biometrics has become a popular agile and low-friction vehicle in users experience through the use of facial recognition. It has created a new mechanism for the development of the so-called digital ‘onboarding’ or remote purchase of financial products and services.

Colombia has been working on a digital identity card since 2019.

This alternative will allow for further growth and deepening in the area of digital identity, as it provides citizens with a means of an electronic identification issued by the National Civil Registry that can be remotely verified by other applications.

This mechanism will also create safer ecosystems and will gradually allow for the adoption of digital citizen procedures and services.

However, it is important for the State to be able to implement interoperability, and build trust in technologies such as Digital Signatures, Digital Certification bodies, Blockchain; and any other alternatives that forward integrity, confidentiality and transparency in the flow of information.

The current issuance of certificates and time stamps indicates that a standards-based age has begun and that it is now possible to use a fintech registration platform to secure transactions.

Today, there has been significant progress in electronic financial services being opened remotely, making processes such as the creation of a savings account faster for users.

However, it is necessary to bring forth digital banking initiatives that enhance the process in terms of timing and effort so that, at the next step, digital identities become linked to electronic transactions such as contracts, promissory notes, guarantees and amendments to contracts, among others. It is clear that digital identity will spawn confidence not only when a register is made but also when the entire operational route currently needed for rendering a service is simplified.

It’s worth noting the work carried out by companies to standardize initiatives such as XRoad or Fido (to name a few), which help simplify and ease interoperability standards and attain reliable electronic authentication methods.

The challenge is to reduce the operational model of Fintech and the Legal Tech industry (applying technology for rendering or commercializing legal services) to make it more efficient; accomplish a vision that supports customer knowledge, their identification; and make transactions and contracts reliably in the digital ecosystem.

The opportunity is knocking, and the national software industry is fully suited to overcome this challenge by making use of international standards.

“We are the financial partner of those Colombians who don’t have favorable credit reports, in order to help them with their life projects and thus also contribute to financial inclusion of the country. “