As the New Year unfolds, digital technologies will play an important role in making customers’ lives easier, but also safer. It’s up to technology companies and banks to ensure that becomes a reality.
In light of this, Mitek’s CTO, Stephen Ritter and VP, Sanjay Gupta share their top predictions for 2022.
An AI Bill of Rights will create new opportunities for solution providers and limit irresponsible use of data
Next year, the US government will officially establish its new advisory commission on AI technologies, and the AI Bill of Rights proposed by the current administration likely won’t be far behind. Legislation that limits the non-consensual scope and impact of AI on consumers is badly needed, as demonstrated most recently by the whistleblower accusations against Meta’s use of algorithms to prioritise engagement even on harmful content. Somewhat like the EU’s GDPR, a bill focused on consumer protections won’t limit innovation or value by companies providing AI solutions so long as they obtain consumer’s consent to use their data, but it will act as a shield against businesses marketing or otherwise using that data without disclosing it. And as important as these protections will be in the next year, we will also likely continue to see regulations further refined in the years ahead as AI technologies continue to grow and become more sophisticated.
Touchless technology is here to stay – but not for the reasons you think
We saw a big spike in the availability and use of touchless technologies last year, largely in response to concerns about infection during the earlier days of the COVID pandemic. By introducing consumers to these technologies through touchless ATMs, QR code sign-in at hotels and other applications, service providers also showed the public how much more convenient they are. When customers don’t have to pull out their wallet or manually navigate through an interface, that reduces a lot of friction to make services faster and easier – and most people won’t want to give that up even once the pandemic is over. In 2022, we’ll see more airlines use touchless technologies, as well as new industries like concert/sports arenas, public transportation, stores and more. In addition to decreasing wait times in lines, biometrics-based authentication also prevents ticket fraud, an issue that’s been on the rise in recent years as more consumers are buying digital event tickets.
We will see the new age of Apple vs. Microsoft in decentralised identity platforms
We’re poised for yet another major Apple vs. Microsoft competition in the next year, not in devices or software but in establishing the industry’s dominant decentralised identity platform. Apple’s approach to decentralised ID has thus far been limited to customers within its own ecosystem, creating what some have called a “walled garden,” and hasn’t made decentralisation a major selling point of its offerings. Meanwhile, Microsoft made waves announcing its own decentralised system with Azure Active Directory verifiable credentials and developer kits earlier in 2021, which in principle would allow a broader segment of businesses to use the service. If last year saw the launch and initial growth of these two platforms, 2022 will be the year competition really heats up to determine which approach and ecosystem customers choose for decentralised identity.
Banks will focus more than ever on the digital consumer
During the height of COVID fears, consumers were no longer coming into big branches to manage their finances, and competition from smaller more digitally focused banking groups began to steal customers away. As a result, banks poured an influx of funds into their digital strategies to add more value for digitally-minded consumers, and in seeing the success of those efforts last year, will continue to push for more mobile-first, customer-focused technologies in 2022. These digital services will focus heavily on minimizing friction to make apps faster and easier to access. Combining a focus on digital technologies with consumers’ longstanding trust in the banking industry will also provide opportunities for banks to explore newer and sometimes riskier financial services, such as decentralised finance, where consumer interest is growing.
Voice and behavioural biometrics are the future of authentication
The use of AI, including biometrics, to verify identification and support secure online transactions will continue to expand in 2022. According to new research from airports that have implemented biometrics systems in 2021, many consumers support these common types of identity verification, such as fingerprint matching. In the next year, we will hear more about behavioural biometrics and voice matching as these new methods enable people to more securely conduct business and transactions online.