We live in a fast-changing world where businesses must adapt to a growing digital population, rising consumer expectations and the increasing risk of fraud.


of organisations have suffered fraud and economic crime


of B2C organisations differentiate through customer experience


Internet users

A more uncertain world

Changes in technology, regulation and the social and political landscape create ever-increasing uncertainty, for consumers, businesses and public-sector organisations. At the same time, digital business models allow unprecedented reach, flexibility and cost economics, with the consumer identity sitting central to this.

To trust an identity, we have to trust that organisations responsible for managing and accessing those identities are doing so securely; a challenge that is growing. In the UK, the National Cyber Security Centre chronicles the growth of cybersecurity issues, from ransomware, to data breaches to supply chain breaches, a trend mirrored around the world.

PwC’s 2018 Global Economic Crime and Fraud Survey showed fraud at an all-time high, and forecast to grow. 49% of organisations globally admitted they’ve been a victim of fraud and economic crime in the last two years – up from 36%.

Sources: NCSC, PwC

Evolving regulatory landscape

Regulations are changing in an attempt to keep up with technologydriven change. This is driving investment in solutions that deliver a positive customer experience while meeting compliance and risk-management requirements.

Recent developments include:

  • The EU General Data Protection Regulation (GDPR), affecting all businesses operating or using data processed in the EEA
  • The new EU Payments Services Directive (PSD2) and Open Banking in the UK
  • Age Verification as part of the Digital Economy Act in the UK
  • Stronger anti-money laundering (AML) regulations in the UK, Canada and Singapore
  • Regulatory bodies across the Asia Pacific region reviewing electronic and biometric verification

Ever increasing transactions online

Despite these challenges the digital economy continues to grow globally, with 3.4 billion internet users, growing at ten percent p.a. Online retail continues to grow with US parcels growing at nine percent p.a. and US eCommerce growing at 15 percent.

While talk of trade disputes and national interests has heightened, these aren’t reflected in global trade which remains above trend in the latest World Trade Organisation report. This is against a backdrop of broad-based economic growth, increasing to 3.9 percent in 2018 and 2019.

Sources: Mary Meeker, WTO, IMF

Consumer expectation

With competitive intensity increasing, fuelled by innovation, deregulation and globalisation, businesses are having to work harder to stand out. Consumers have more choice, less time, shorter attention spans and higher expectations.

It is not surprising, therefore, that more and more businesses are competing on the basis of customer experience. 47 percent of B2C and 41 percent of B2B organisations say this is their primary source of differentiation, balancing the apparently conflicting requirements of seamless experience, fraud mitigation and rigorous compliance across their customer journey.

Sources: eConsultancy/Adobe

Technology-fuelled innovation

We are all generating more and more personal data. It exists in many different formats including multilingual, dynamic, unstructured, crowd-sourced and ‘official’ data.

With this, technology continues to drive innovation across all sectors, as access to high-speed fixed and mobile internet becomes the norm, and cloud and mobile apps and services mature. Newer technologies build on these, including:

  • Blockchain and other distributed ledgers to manage trust
  • An ever-increasing range of biometrics to identify people
  • AI and machine learning bringing new meaning to data

Each technology has strengths and weaknesses; the key is getting the right combination of technology and data to ensure that you are making confident decisions when it comes to detecting fraud and onboarding consumers.