Victoria Saporta, BoE executive director for prudential supervision, has said recently that minimum resilience requirements should be required for the tech giants’ (and others’) hosting services, before they may process and store banking data. We strongly support these comments. We have identified this issue as one of a number of new risks arising from modern financial systems architecture, in recent Structured Risk Analyses that we have carried out for financial and retail organisations in North America, Asia-Pac and EMEA.
In our Live 5 for 2021, we said that governance would be a major topic for digital identity this year. Nowhere has this been more true than in the UK, where the government has been diligently working with a wide set of stakeholders to develop its digital identity and attribute trust framework – the rules of road for digital identity in the UK. The work continues but with the publication of the second iteration of the framework I thought it would be helpful to focus on one particular aspect – how might the framework apply to decentralised identity, given that is the direction of travel in the industry.
I was delighted to be asked to present a keynote at the FIDO Authenticate Summit and chose to focus on digital identity governance, which is something of a hot topic at the moment. Little did I know that the day before my session was recorded the European Commission would propose a monumental change to eIDAS, the Europe Union’s digital identity framework – one of the main examples I was planning to refer to. I hastily skimmed the proposed new regulation before the recording but have since had the time to take a more detailed look.
Earlier this year we were delighted to be part of the Consult Hyperion webinar on Request to Pay. A common thread in post-event conversations that followed was an interest in the parallel developments of the UK and European flavours of Request to Pay and how they might work together. With the launch of the European version on June 15th, we thought it an ideal time to signpost the bigger differences.
In the new digital economy, digital identity is a key component to ensuring security, privacy, and convenience for people and businesses.
As an example of creative thinking in promoting inclusion, I would like to highlight John Patrick Crichton-Stuart, 3rd Marquess of Bute, a thoroughly modern Victorian, educated by his mother until the age of 12. He was ridiculed by society for his progressive views in paying great attention to the education of his daughters as well as his sons. Considered the richest man of his time, his hobby was building the finest fairy tale castles. He also built a magnificent building for the medical school at the University of St Andrews and endowed the Bute Chair of Medicine. When the male anatomy lecturer refused to teach women, he simply hired a woman as an additional lecturer, to teach any students who wished to learn with her. In this way, he managed to provide an environment in which women and men could train alongside one another, without coming into conflict with the existing hierarchy. Perhaps surprisingly, we still have lessons to learn from his approach.
This weekend marks an anniversary. Although Consult Hyperion’s romance with smart cards had started many years before that, it will be fifteen years on Sunday that chip and PIN went live in the UK. I remember St. Valentine’s Day 2006 as if it was yesterday!
When we look forward to 2021, it is no surprise that COVID-19 is the dominant factor. So far as the merchant payments world is concerned, the shape of the post-pandemic new normal transaction environment must be the key strategic consideration for stakeholders and I am desperately keen to hear the variety of informed opinion on this topic that I have come to expect at Merchant Payments Ecosystem every year. At Consult Hyperion we like to contribute to these conversations by providing a useful framework for discussion: our annual “Live 5”, our yearly set of suggestions for strategic focus. This year, we choose to look at the key issue of pandemic transformation and its impact of on the three key domains where our clients operate: Payment, Identity and Transit, together with (as is traditional!) a suggestion as to a technology that the POS world may not be thinking about but probably should be.
Today marks the 10th anniversary of Safer Internet Day in the UK. Each year Industry, Educators, Regulators, Health & Social Care workers and Parents rally to raise awareness and put into action, plans to tackle findings from significant research on the topic of trust and safety on the internet. This year one of the research pieces talks of the challenge ‘An Internet Young People Can Trust’. As a mum of two school age children, I am sat here wondering if the internet will ever be safe … for them or me.
If I think about life BC (before COVID), my eldest used social media for broadcast communications to her friends. She was guided on the appropriateness of certain apps and our acid test on the content she was posting, was always ‘would you go up to a stranger in the street and give him your name, age, location and a photo of you in a bikini’ … her reaction was always ‘err, no’. My youngest had never been online apart from BBC Bitesize for homework assignments. We’re not online gamers so have never had constant nagging to go online. Additionally, you have to remember the internet (and mobile internet) has been significant in my work world since 1990 so I have a heightened understanding of the pitfalls and have seen many fall foul of their online reputation, tarnishing their in-person reputation.
At the (sadly, virtual) Fintech South event the year, I was asked to chair a discussion on identity and privacy with three extremely well-qualified experts who had informed perspectives on the state of, and trends in, those important pillars of a digital society. These were Adam Gunther (SVP, Digital Identity for Equifax), Andrew Gowasack (Co-Founder and President at TrustStamp) and Megan Heinze (President, Financial Institutions, North America for IDEMIA). It was great to talk to a group of people who were not only well-informed on these topics but had some passion for them too.
I won’t go over everything that was discussed, but I do want to pick up on a comment that was made in passing when I was chatting to the panelists: someone said that a guiding principle should be “no scary systems”. Hear hear! But what is a scary system? It is, in my opinion, a system that privileges security over privacy. This is not how we should be designing the identity systems for the 21st century!