Identifying and Supporting Financially Vulnerable Consumers in a Privacy-Preserving Manner: A Use Case Using Decentralised Identifiers and Verifiable Credentials (original) (raw)

Know Your Customer: Balancing Innovation and Regulation for Financial Inclusion

ArXiv, 2021

Financial inclusion depends on providing adjusted services for citizens with disclosed vulnerabilities. At the same time, the financial industry needs to adhere to a strict regulatory framework, which is often in conflict with the desire for inclusive, adaptive, privacy-preserving services. In this paper we study how this tension impacts the deployment of privacy-sensitive technologies aimed at financial inclusion. We conduct a qualitative study with banking experts to understand their perspective on service development for financial inclusion. We build and demonstrate a prototype solution based on open source decentralized identifiers and verifiable credentials software and report on feedback from the banking experts on this system. The technology is promising thanks to its selective disclosure of vulnerabilities to the full control of the individual. This support GDPR requirement, but at the same time, there is a clear tension between introducing these technologies and fulfilling ...

Distance Personal Identification in the On-line Environment: Problems of Financial Institutions in the EU

Independent Journal of Management & Production

Electronic financial services are of key importance in the EU. However, the actual policies adopted in the field by individual member states differ from country to country. A great deal of legal acts have been adopted by the EU to encourage FinTech development, to prevent money laundering and in particular to lay down secure procedures of personal identification. However, measures applied by individual member states frequently differ. The purpose of this article is to focuses on actual legal instruments used by EU financial institutions and FinTech agencies in the digital environment for client identification and on major problems faced by FinTech companies rendering modern financial services. Financial institutions and FinTech agencies often face the problem of client identification which is of key importance in the field. The complex legal regulation of the field has been extended to include such concepts as customer due diligence, simplified customer due diligence, enhanced custo...

CUSTOMER AUTHENTICATION, AS A MATTER OF RISK IN FINANCIAL SERVICES

According to some experts' opinion, in such a technocrat society as ours, in the last decade of the 20 th century the speed of the technical developments can be equal to the changes in the first 90 years of the same century. Besides the chances and opportunities, which came into existence with the spreading of the Internet, the exact recognition of the real dangers caused by the development and the changing of the customer relationships is of an enormous significance. The 'information highway' incredibly reduces the time needed for spreading the news, and at the same time shortens the lifecycle of the information. The most obvious sources of danger of the information revolution are remarkably increased: 1 • without the introduction of appropriate restrictions and measures, the faceless contact between people and computers on the data-network can easily become a hotbed of anonymous crime, • the mistakes arising during the increased information-flow can cause chain-reactions, that can forecast a so-called information-catastrophe, • in a world that becomes more and more automatic, people are less and less prepared for managing unexpected actions, • the mixing of the real and the virtual information, i. e. the merging of the borders of the real and an imagined world can become a serious danger for the users.

An Anonymity Preserving Framework for Associating Personally Identifying Information with a Digital Wallet

Advances in Science, Technology and Engineering Systems Journal, 2021

Article history: Received: 23 October, 2020 Accepted: 19 December, 2020 Online: 10 January, 2021 Growing adoption of cryptocurrencies by institutional investors coupled with recurring incidents of loss of access to digital wallets have resulted in emergence of custodial services for high net worth individuals and institutions. However, such services are not economically feasible for the wider community of crypto owners who are left with no recourse for recovery of lost funds. This paper proposes a framework, AFAP, for associating certain personally identifying information with a digital wallet so that a user may prove ownership of the said wallet. Thus, the owner is able to establish his/her claim over funds associated with such a wallet in case of loss of access to it. We show that the proposed scheme has no adverse effect on anonymity, privacy and forgetfulness of personal information of the wallet owner.

Power To The People: How Blockchain Based Digital Identity Can Empower Disadvantaged Individuals

2019

Blockchain technology is thrown around as a fix for many logistical issues, including how societies keeps track of identity. 1.1 billion people currently lack any form of identity, and billions of people with identity find their personal data out of their control. Billions suffer when physical forms of identity are taken, destroyed, misplaced, or forged. The Equifax and Facebook-Cambridge Analytica hacks demonstrate the severe impacts of identity and data mismanagement. The European Migration Crisis exemplifies the drawbacks of immigration systems when physical identity forms are missing and the strenuous process of determining backgrounds and identity. This thesis evaluates blockchain technology as a solution to the identity crisis. The thesis analyzes the specifics of the technology to see if it can function as an identity management system. It will then assess the viability of blockchain based digital identity projects. The paper will then apply the technology in hypothetical use cases and determine how blockchain architecture can empower individuals to reclaim control of their identity, especially in refugee and trafficking crises.

From security versus privacy to identity: an emerging concept for policy design?

info, 2010

Purpose -The purpose of this paper is to examine the electronic identity (eID) market from a social, technical and regulatory viewpoint, and the opportunities/challenges for policymakers. The paper also aims to discuss whether a single European market for identity is realistic and whether a common eID framework for Europe is timely and appropriate.

Identity and Privacy Governance - Edited Volume

Frontiers in Blockchain, 2021

The design and management of digital identity is a complex challenge. On the one hand, it requires a clear understanding of the parameters that are involved in identity management. On the other hand, it requires the cooperation of many stakeholders. In particular, this involves those public authorities and private organisations that need to be aligned to define technical standards, develop identification infrastructures and maintain them. A shared understanding of fundamental concepts that define identity in the digital age is then a prerequisite. Such a complimentary reflection and evaluation of what the emergence of distributed-ledger technologies means from the perspectives of human rights, human dignity, as well as individual and collective autonomy are essential to ensure their use for good purposes. While technical capabilities are important, they are increasingly insufficient without guiding theoretical frameworks. Sound governance mechanisms which respect, protect and promote human rights such as privacy are equally essential. The COVID-19 pandemic has only further increased the desire to use data to understand and manage our societies (Zwitter and Gstrein, 2020), which also increases the degree to which we are defined through data and our access to digital services.

Secondary Uses of Personal Identity Information: Policies, Technologies and Regulatory Framework

Although personal identity information must primarily be used for protecting and promoting the physical needs of individuals, it has also become central to the business models of the digital age due to its use for other secondary purposes, resulting in various innovative identity management (IdM) solutions in OECD countries. Nonetheless, developing countries have still not been able to address basic identification challenges such as civil registration, real-time credentials verifications, etc. This paper discusses a means of communicating identity-related concepts to policy-makers, technologists, credential issuers and other stakeholders by addressing core issues relating to secondary use of personal information. The results of a stakeholder workshop in Ghana on secondary use of personal information are presented by stating the core issues and recommendations. We propose the adaptation and application of existing IdM research and experiences from OECD countries to deal with issues involved in using personal information for secondary purposes.

Privacy and identity management for everyone

Proceedings of the …, 2005

The shift from a paper-based to an electronic-based society has dramatically reduced the cost of collecting, storing and processing individuals' personal information. As a result, it is becoming more common for businesses to "profile" individuals in order to present more personalized offers as part of their business strategy. While such profiles can be helpful and improve efficiency, they can also govern opaque decisions about an individual's access to services such as credit or an employment position. In many cases, profiling of personal data is done without the consent of the target individual.