Consumer Digital Identity Today is Broken. Research by Liminal Navigates a Path to Its Restoration
NEW YORK, Oct. 7, 2021 /PRNewswire/ -- Consumer identity is in need of an intervention, according to a new research report from Liminal titled, "The Consumer Digital Identity Landscape 2021 — Migrating to Personal Identity Ecosystems."
Decades of neglect have led to the current state of play – identity fraud is rampant and consumers are justifiably paranoid about the lack of control that they have over their digital destinies. According to a survey of over 1,500 US consumers conducted by Liminal in July 2021:
- Over 44% of consumers use just two to five password variants for all accounts, with 16% using the same password for all accounts.
- 42% of consumers have abandoned an online or mobile account application due to onboarding friction.
- A quarter of consumers state that they actively avoid using mobile biometrics due to privacy concerns.
- Three-quarters of consumers have chosen "Do Not Track" as an option for sharing their personal data with third-parties in the Apple ecosystem.
As the report highlights, a considerable amount of work must be done to rebuild the trust between consumers and service providers, but the challenge is not insurmountable. According to Nick Holland, Liminal's director of research and co-author of the report, "unlocking the current one to one marketplace will require the development of Personal Identity Ecosystems (PIEs) as the connective tissue between consumers and service providers, streamlining four consumer identity traits that are critically important to them — privacy, commerce, reputation, and data protection."
A fundamental step on the journey to PIEs will be the development of digital identity wallets, and signs are strong that consumers will be comfortable with a range of activities, including storage of driver's licenses, passwords, medical and vaccination records, as well as making age restricted purchases, and even voting in a national election.
Liminal founder and CEO, Travis Jarae, states, "getting from where we are today will not occur easily or quickly, but this evolution is necessary to resolve today's identity management challenges. A fundamental first step will be charting a course that will actively recalibrate the industry towards building and relying on trusted personal identity ecosystems, which will only be possible if consumers are shown the value of the fusion of physical identities and digital personas."
The report is 46 pages and contains 26 exhibits.
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ABOUT LIMINAL:
Liminal is a boutique strategy advisory firm serving digital identity, fintech, and cybersecurity clients, and the private equity and venture capital community. Since 2016, we have offered objective, high impact strategic advice, and analytical services, helping to support clients in crucial business decisions at all stages of the product and business lifecycle. We've advised many of the world's most innovative business leaders, investors, and government officials on building, buying, and investing in the next generation of integrated digital identity platforms and technologies. As a result, our clients trust us to set strategic direction in light of radically evolving ecosystem dynamics, pursue new growth strategies, capitalize on M&A opportunities, and optimize deal flow. We see the solutions to these complex digital challenges not as a 'what' but as a 'how.' We don't just tell you about the destination, we show you how to get there.
Contact: Kristen Grazia
Contact email: [email protected]
SOURCE Liminal Strategy Partners, LLC
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