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130408 digital e-identity europe innopay douwe lycklama ips final
1.
Single European Identity
Area Can We Achieve A Single European Identity Area? Douwe Lycklama – London April 8, 2012 tomorrow’s transactions today
2.
2 Toward a
Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
3.
3 Toward a
Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
4.
Douwe Lycklama, Partner
@ Innopay • EE (engineering TU Delft, 1990) • Consumer electronics background (Philips) • Innopay since 2002: payments, e-identity, e- invoicing • Passion for consulting and product development − Complex intangible products/services − Collaborative innovations • “Make this world a (little) better place , with better services” • Co-founder and strategist of the NL E-identity framework eHerkenning • Member of SSEDIC • Only just begun … 4 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
5.
Agenda 1.
What is e-identity? 2. How is e-identity doing today? 3. The European way forward 5 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
6.
What is e-identity? E-identity
defined in daily use tomorrow’s transactions today
7.
Identity is all
around us 7 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
8.
First some Lingo…. •
Users: consumer or a person acting on behalf of a business or government • Relying party: A party that want to know who is ‘knocking on his door’ • E-identity: An electronic identity describes a subject (person, organisation or system) via its properties (attributes), in the online/mobile world, in a consistent and verifiable way • Identification: Identification is the process where a user makes himself known to the relying party in order establish a connection or to gain access to the system/website/web service etc. • Authentication: The process of making sure that an identified person or entity is indeed ‘the person who he says he is’ 8 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
9.
Identity use: Trust,
Compliance & Convenience Trust Compliance Convenience 9 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
10.
Internet = customer
not present 10 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
11.
E-identity credentials exist
in many forms 11 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
12.
Value drivers of
e-identity Why e-identity? User Relying party Higher trust Know who you are dealing with Compliance Obey the law Be recognised & better Better conversion & less Easy of use services costs 12 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
13.
What makes a
good service proposition? Profit Pleasure Practicability Source: Prof. Betty Collis, 1993 13 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
14.
E.g. mobile telephony?
Benefit Realised? Profit More efficiency in society, low cost Pleasure Use everywhere, more contact, social interaction, global reach Practicability Similar to ‘old telephony’, extend old habits 14 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
15.
E.g. online banking?
Promise Realised? Profit More efficiency in society, no paper Pleasure Use everywhere, global reach Practicability New habits needed because of security 15 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
16.
How is e-identity
doing? Along the 3Ps tomorrow’s transactions today
17.
How does e-identity
score on the 3Ps? Promise Realised? Profit Cost saving in business processes Better service quality Pleasure Use everywhere, seamless working Practicability Ease of use, easy to on board 17 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
18.
More specific for
e-identity Promise Key issue to be solved Benefits (Profit) 1. Cost saving in Huge untapped business processes potential due to low penetration, still many 2. Better service paper processes, lack of quality awareness Functionality (Pleasure) 3. Reach for both users Fragmented solutions, and relying party silo thinking Ease of use 4. Limited barriers to Many sign up processes, (Practicability) on board and to use too easy means unsecure 18 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
19.
Key issue 1
and 2: cost and quality • Cost saving: less paper, more straight through − Sign up − Log in − Digital contracting • Better quality: ease of use for customer − Mobile: less typing small screens − Recognise returning customers, profiling • Government policies geared toward digital services. Governments can enforce ‘adoption’ by killer apps (tax, permits, subsidies) • Awareness in business relatively low, except in e-commerce sector Huge market potential 19 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
20.
Key issue 3:
the current market is full of silos Authentication ‘Mandate’ Citizen Government Company Government Company 20 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
21.
Key issue 3:
large number of passwords • As a result customer are put up with large numbers of credentials 21 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
22.
1st generation e-identity:
direct model User Relying party (Person, Provide Identity (Business, Entity) Government) 22 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
23.
2nd generation e-identity:
platform User Relying party (Person, Provide Identity (Business, Entity) Government) User name / password Identity platform Identity platform Identity platform 23 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
24.
Key issue 4:
ease of use • Ease of use is a trade off with security − Avoid lengthy sign up processes − Security should be managed adequately 24 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
25.
The European way
forward Single European Identity Area? tomorrow’s transactions today
26.
The key to
EID success is Interoperability (…or the whole planet will have to sit with one provider) 26 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
27.
The same key
as to other two sided markets payments invoicing telecom … 27 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
28.
Why interoperability? Remember
3P’s • Users: want to identify themselves with as much as possible relying parties − Want less passwords − Harmonised user experience Maximise ease of use, minimise hassle • Relying parties: want to identify as much as possible users − Want lower costs − Maximum audience Minimise cost, maximise usage / sales / conversion 28 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
29.
Interoperability in a
fragmented market implies cooperation between competing parties 29 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
30.
Cooperation on
Business, functionality, infrastructure 30 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
31.
Europe’s blueprint 31 Toward
a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
32.
3rd generation e-identity:
Trust Framework User Relying party (Person, Provide Identity (Business, Entity) Government) Authenticate Network Access Authentication Authentication Authentication Identity issuer Real-time Routing Authentication Identity router Provider Authentication Router Authentication Provider Router Provider Router 32 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
33.
Remember payments ?
Buyer Merchant Issuer Authentication Acquirer Authentication Authentication Authentication Provider Router Provider Router 33 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
34.
Trust Frameworks: a
few defined around across the globe • Open Identity Exchange (OIX) − Different Trust Frameworks for different contexts − The U.S. Government ICAM Trust Framework, The Telcom Data Trust Framework, Respect Trust Framework − A Trust Framework is a certification program that enables a party who accepts a digital identity credential (called the relying party) to trust the identity, security, and privacy policies of the party who issues the credential (called the identity service provider) and vice versa. • bankID − One Trust Framework developed by several large Nordic Banks − BankID is the leading electronic identification in Sweden, and is used for multiple context − Nine issuing banks, just banks… • eHerkenning − One single trust framework for multiple contexts − A Trust Framework is a coherent set of agreements in order to facilitate a digital identity ecosystem which is operational in order to collaboratively create trust, security and privacy to serve end users in the market. • Key differentiators − OIX uses different Trust Frameworks for different contexts, bankID is just offered by banks − eHerkenning is one e-identity Trust Framework for every context 34 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
35.
More initiatives • UK
Identity assurance program • USA: NSTIC • STORK: EU interoperability of ID tokens • Standardisation: SAML, XACML, ISO, … • EU regulation 35 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
36.
Key points of
EU proposed regulation • Aimed at cross border acceptance of government e-identity tokens for government services • Digital signature (repair earlier 1999 directive), electronic seals and time stamping • Countries can register their e-identity token in Brussel => all EU27 countries have to accept the token • The registering country has to: − accept liability in return − offer free on-line access for relying parties to the tokens • This seems to incentivise countries to issue high assurance level EID’s and register them with EU 36 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
37.
Reflection on EU
proposed regulation • Which problem are we solving? Only the governments as relying party or the European society at large? − Marrying, medical, tendering, incorporation, studying: how often does this happen in a persons or companies life? Or as part of the whole economy? • No business-to-business and business-to-consumer focus, therefore not addressing the fragmentation in the most relevant area’s. • No common understanding of levels of assurance will hamper harmonisation. Relying parties will need to know what to trust and what not 37 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
38.
Potential winners in
the identity market • Regulated industries: banks, governments, telco’s => all have an existing relation with the customer • Social media players: Facebook, Google, LinkedIn • Specialised (local) e-identity players 38 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
39.
Huge challenge: business
model • Benefits for the relying party not aligned with cost of the user for the credentials and check • Willingness to pay increases of time: as more services become available, it becomes more attractive to have an e-identity token • Governments can drive adoption via exclusive and compulsory service (e.g. tax) • Innovation still has to take place in this domain 39 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
40.
Take away’s of
this session 1. E-identity is the critical component for advancing online business, because it adds trust. Trust leads to more business. It is the ‘new money’ 2. E-identity should be ‘right’ (3P!) for BOTH user and relying party, including the business model. That will push for ‘non silo’ and ‘multiple assurance levels’ 3. Standardise part of today’s e-identity offerings in such a way that they become easier available for relying parties. Via separate gateways or as part of a trust framework. We can learn from the payment industry here! 4. Take the non-national view (first European, then global?) 40 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
41.
Above all: think
3P! Profit Pleasure Practicability Source: Prof. Betty Collis, 1993 41 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.
42.
Thank you For your
attention Douwe Lycklama - douwe@innopay.com tomorrow’s transactions today
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