As the identity space matures into an industry in its own right, startups and incumbents alike are finding new ways to build products that enable solutions across multiple industry segments.
The most apparent reason for the upsurge in industry participation is due to the increase in the number of connected devices globally, predicted to near 21 billion by 2020 says Gartner Research. As the number of connected devices increases the need to develop new and innovative ways to create, verify, and authenticate identity, also increases.
The breakdown of identity industry segments are as follows:
- Advisory & Industry Organizations – This segment is made up of for-profit firms (PwC, Innovate Identity) providing consulting services, as well as nonprofits (Open Identity Exchange, IDESG) aimed at aiding in the development of industry standards for identity creation, verification, authentication, privacy, and security
- Background Checks – An established segment that is being disrupted with the proliferation of digital identity and advances in automation, young companies like Onfido are poised to make pre-employment, housing applications, and other screening a breeze.
- Biometrics & Psychometrics – This segment represents the nexus of the digital and physical identity convergence. These companies are looking to authenticate users via iris scans (eyeLock), use behavioral biometrics to stop fraud (Biocatch), and build future identity platforms (Suprema). Although each of these companies can fit into other segments, we felt it worth segregating out to acknowledge the huge growth in biometric and psychometric applications due to the proliferation of cheap and universally accessible sensors (i.e., smartphones).
- Blockchain & Distributed Ledger – A growing segment with many new tech startups, such as Cambridge Blockchain who recently raised $1.7m in funding, aimed at utilizing blockchain and distributed ledger technologies (DLT) to create identity protocols outside of established centralized authorities.
- Civil Identity & Public Security Applications – An established segment that provides for government identity needs, such as issuance of driver’s licenses and passport documentation, as well as identity management for defense applications. Companies, such as Gemalto and MorphoTrust leverage a suite of biometric technologies, digital and social information, etc. to develop trusted identities.
- Consumer Applications – This segment includes companies looking to empower people with their own data by providing platforms to control your information in a single, secure, personal library (digi.me, meeco, id.me), as well as companies that naturally build digital identities through consumer engagement (facebook).
- Customer Identity Management & Marketing – Companies such as GIGYA and neustar are turning anonymous visitors into known customers through social and traditional data sources, thus improving sales conversion rates.
- Financial Inclusion & Development Orgs – Although this segment does not appear to fit naturally into the industry landscape, the role these companies & organizations play is vital to the growth of the industry. Companies like Juvo and Visa understand that identity is fundamental to accessing critical goods and services, and thus aim to help people around the world create and maintain their identities. Organization groups like the GSMA and World Bank support development through convenings, grants, and research.
- Fraud & Identity Protection – These companies include those that focus on using big data and predictive analytics to prevent fraud and identity theft issues, and make better near real-time transaction-based decisions in order to stop bad guys (such as Experian, which uses machine vision and artificial intelligence).
- Health & Patient Identity – Companies, such as CrossChx, look to disrupt a bulky and slow-moving healthcare industry by providing universal identity management, secure patient biometrics, and more.
- Identity & Access Management – This segment includes companies who put identity in the center of computer security (Ping Identity, Okta). Identity and Access Management (IAM) “enables the right individuals to access the right resources at the right times and for the right reasons” (Gartner). This segment is ripe for consolidation as rumors swirl around IPOs and M&A.
- Identity of Things – As the Internet of Things (IoT) marketplace continues its rapid expansion, established companies like GE and Amazon are competing with startups like everledger and Dojo-Labs to build security into all connect things.
- Know Your Customer & AML Compliance – This regulation-based segment, also commonly referred to as RegTech, is transforming high-cost and high-touch processes into customer-friendly, fast, accurate, and automated regimes. Companies like Trulioo and Socure connect the many disparate data sources, both traditional and non-traditional, to establish confidence when verifying customer identities.
Note that some companies may overlap with different segments and are grouped by their main use case.
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Have questions about the landscape or see that we are missing someone? Contact us and let us know!
Click here for the PDF version – OWI Identity Industry Landscape_January 2017
About One World Identity:
One World Identity is a team of identity experts driven by a desire to create a neutral platform for leaders in the industry to collaborate, connect, and learn. Its 2nd annual KNOW Identity Conference will be held in Washington D.C. March 26-28, 2018.
One World Identity
Director of News & Media