When consumers provide identity data to an organization, they aren’t privy as to how their data is used or where it is stored. And with the rise of data breaches — from Target to Home Depot to Equifax and more — some credit unions are moving away from “silo” authentication methods and adopting a self-sovereign identity (SSI) solution.
“One of the main threads in our integrated architecture was determining a common authentication structure and a common identity across all of our experiences,” said Peter Nohelty, chief technology officer at Royal Credit Union in Eau Claire, Wis. “We are trying to build a common authentication platform across all of our physical and digital channels and linking that to a global credential. That is where SSI comes in – a verifiable digital trust. This is a big deal for us.”
What exactly is SSI, and should it be on all credit union radars? The answer is a resounding “yes,” according to Julie Esser, chief engagement officer for CULedger, a credit union service organization focused on delivering innovative applications on a global distributed ledger platform for CUs.
“The only way to solve the fraud and identify issue is to create self-sovereign identify, which are owned and controlled by the user and can never be taken away,” said Esser. “That is the whole premise around SSI.”
Esser further explained that SSI is a “global digital identifier” built on a distributed ledger platform permitting members to securely interact with a respective credit union. By giving individuals control over their personal identifiable information, SSI can create a “truly secure and privacy-preserving flow” of information and gain members’ trust, she noted.
CULedger’s
“Reducing member friction is so important to us and we want to make sure it is usable and members can enroll into it very quickly,” said Esser ,who added that CULedger has been working with a focus group of 14 individuals spanning all demographics and varied locales. “We will be using biometrics and smartphone technology that already exists—we are starting to work through our use cases.”
SSI evolution
Over two years ago, the $4.5 billion Phoenix-based Desert Financial Credit Union began working on SSI initiative for its 330,000 members
“When the SSI idea was presented to us, we felt it was something we wanted to be involved in,” explained EVP Rondle Amstutz.
The concept of having one ID opposed to countless “silo” IDs was a turning point for Amstutz, who added that the solution has yet to be rolled out to membership. “This is cutting-edge technology that credit unions don’t usually have an opportunity to be a part of from the beginning,” he said.
According to Royal CU’s Nohelty, the credit union receives a fair amount of feedback from its 190,000 members regarding passwords and logins as it relates to multiple logins and credentials across all platforms. That led to the credit union exploring SSI options.
“We are doing a proof of concept and an early technology pilot internally with our core system, Fiserv DNA, and we are working on getting that integrated to make it the central identify and trust mechanism to SSI,” said Nohelty.
“We expect to see that go into production in 2019, but we will probably not go to all channels all at once,” he continued. “We will likely introduce into the call center first and move to other channels as we see those integrations come together with particular vendors.”
Moving forward, Esser said that credit unions have an opportunity with SSI to do “something very easy and very powerful.” This movement, she added, is not just for members but consumers worldwide.
“It is important for us to band together, collaborate and not take a wait-and-see approach,” said Esser. “We have a number of credit unions that are very innovative and very eager to get this moving and to see the value of it.”
