The Identity Challenge in Finance: From Analogue Identity to Digitized Identification to Digital KYC Utilities

Arner, Douglas W.; Zetzsche, Dirk Andreas; Buckley, Ross P.; Barberis, Jànos

doi:10.2139/ssrn.3224115

Cited by 10 publications

(8 citation statements)

References 17 publications

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“…At the same time, identification and KYC rules can be major barriers to accessing financial services for millions of individuals and small businesses. Arner, Zetzsche, Buckley, and Barneris (2018) argue that technology can present an opportunity to solve this challenge and ensure the objectives of financial inclusion and market integrity through the development of digital identity infrastructure and electronic KYC (e-KYC) infrastructure, but not at the cost of financial stability. A good example is India Stack, a collection of open application programming interfaces (APIs) that provides a paperless e-KYC service to instantly establish the identify of prospective banking customers in India.…”

Section: Regtechmentioning

confidence: 99%

A Survey of Fintech Research and Policy Discussion

Allen

Jagtiani

2021

RCF

147

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The intersection of finance and technology, known as fintech, has resulted in the dramatic growth of innovations and has changed the entire financial landscape. While fintech has a critical role to play in democratizing credit access to the unbanked and thin-file consumers around the globe, those consumers who are currently well served also turn to fintech for faster services and greater transparency. Fintech, particularly the blockchain, has the potential to be disruptive to financial systems and intermediation. Our aim in this paper is to provide a comprehensive fintech literature survey with relevant research studies and policy discussion around the various aspects of fintech. The topics include marketplace and peer-to-peer lending; credit scoring; alternative data; distributed ledger technologies; blockchain; smart contracts; cryptocurrencies and initial coin offerings; central bank digital currency; robo-advising; quantitative investment and trading strategies; cybersecurity; identity theft; cloud computing; use of big data, artificial intelligence, and machine learning; identity and fraud detection; anti-money laundering; Know Your Customers; natural language processing; regtech; insuretech; sandboxes; and fintech regulations.

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Section: Regtechmentioning

confidence: 99%

A Survey of Fintech Research and Policy Discussion

Allen

Jagtiani

2021

RCF

147

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“…In the European context, eIDs are developed at a rapid pace, both by government agencies building national identification infrastructures and by private corporations building 'Know-Your-Customer' (KYC) infrastructures, sometimes resulting in concerted efforts and eID solutions (Arner et al, 2019). There are substantial differences between European countries in how they organize their identification infrastructure.…”

Section: European Development Of Eidsmentioning

confidence: 99%

“…Issuers like Facebook gain value by charging users to pay with their personal and behavioural data. Other centralized issuers like banks may monetize eIDs for cash and data, building so-called ‘Know-Your-Customers’ databases (Arner et al, 2019). With each authentication session that runs via the operator’s central system, a charge can be imposed and profiles can be built; issuers who play a central role in the eID architecture can charge verifiers for each visitor’s authentication.…”

Section: Political-economic Aspects Of Eid Systemsmentioning

confidence: 99%

Electronic identity services as sociotechnical and political-economic constructs

Dijck

Jacobs

2019

New Media & Society

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Electronic identification services (eIDs) have become strategic services in the global governance of online societies. In this article, we argue that eIDs are sociotechnical constructs that also have political-economic dimensions. In the European context, governmental and corporate efforts to develop eIDs are shaped by legal EU frameworks, which are almost exclusively focussed on technical and legal interoperability, such as the European Interoperability Framework (EIF) and the European Interoperability Reference Architecture (EIRA). Public concerns such as privacy, security, user empowerment and control over one's personal information prompts developers to propose a decentralized, attribute-based system governed on a nonprofit, nonstate basis (DAN-eID). To illustrate our argument, we explore a single emerging eID system (IRMA; acronym for I Reveal My Attributes) that is developing in a national context (The Netherlands). We argue that developing eIDs requires more than engineering ingenuity and legal compliance; as sociotechnical and political-economic constructs, they involve negotiation of conflicting social and political values.

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“…As a product of the combination of digital technology and traditional finance, digital finance necessarily has financial attributes that no longer rely on the physical channels on which traditional finance relies, are more penetrating at the geographic level, and have lower cost advantages [ 5 , 6 ]. Based on theories of financial development and income distribution, we find that academics seek not only consensus but also exploration and extension of the issue, but all acknowledge the critical role played by digital finance in income distribution [ 3 , 7 , 8 ].…”

Section: Introductionmentioning

confidence: 99%

How digital finance affects income distribution: Evidence from 280 cities in China

Jiang

Shimei

2022

PLoS ONE

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This paper empirically tests the relationship between digital finance and income distribution of residents in 280 cities in China from 2011 to 2020 using linear and nonlinear models, respectively. Based on the Greenwood-Jovanovic (G-J) theory of output grow, the empirical study shows that there is a Kuznets effect of digital finance development on the income distribution of Chinese residents, and most regions have not yet crossed the inflection point of the bell-shaped curve, and the income gap within regions will continue to increase with the development of digital finance. Furthermore, the threshold model test shows that the positive effect of digital finance on the income disparity of residents may initially increase with the increase of regional economic level. However, when the regional economic development reaches a higher stage, the negative effect of digital finance development on the income distribution of residents will be significantly reduced.

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The Identity Challenge in Finance: From Analogue Identity to Digitized Identification to Digital KYC Utilities

Cited by 10 publications

References 17 publications

A Survey of Fintech Research and Policy Discussion

A Survey of Fintech Research and Policy Discussion

Electronic identity services as sociotechnical and political-economic constructs

How digital finance affects income distribution: Evidence from 280 cities in China

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