Towards cross-border interoperable digital identity in electronic banking
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For years, banks have been required to secure their online banking services and manage number of customers’ identities, addressing security and privacy issues. Identity management systems facilitate cost-effective and secure way of managing these identities. However, the heterogeneous identity landscape, when every bank employs its own "siloed" identity infrastructure, causes many obstacles for development and popularization of online-banking services along with increasing costs of managing identities. The emergence of identity management solution accepted by multiple parties and operating cross-border and cross-organization can lead to enormous benefits for both banks and their customers. The research is comprised of two multifaceted multiple-case studies of current identity management solutions in Europe, Norwegian BankID, and current cross-border interbank systems such as VISA, SWIFT, and IdenTrust. During the research, we identified the fundamental factors influencing identity management system acceptance and adoption rates. Furthermore, the analysis of socio-economics, success factors, explicit and implicit requirements of previously mentioned solutions was the base for designing cross-border and multi-party accepted identity management system for e-banking with the goal of saving costs and simplifying market. It was found that cultural background and public trust in identity provider predefine security requirements and, along with ease of implementation, usability, interoperability and exploitation in “a must” applications, facilitate adoption to a great extent. The economical consideration and business aspects showed, among other findings, that in general identity management system should be considered as a two-sided platform leveraging interests of relying parties (service providers) on one side and identity-holders on the other. Finally the results were leveraged by designing prototypes of business model and architecture, adhering to the identified success principles of identity management systems. The project establishes a solid ground and a roadmap for future research in crossborder identity management; it contributes to better understanding of digital identity in terms of driving factors, economic and cultural implications.