Ok, so here’s a rough draft of my “Future of Issuing is IDM”. This is one of the future scenarios I think we should consider in planning to prepare financial services products for the future.
- Plastic Cards and Paper Statements are last century's innovative representations of accounts and transaction histories. I’m not suggesting they will go away entirely, but the economic value of issuing plastic and paper is diminishing.
- The need to protect accounts and transaction history continues. Issuing has always been about Knowing Your Customer (KYC), Customer Relationship Management (CRM), Customer Intimacy or Insight (CI) or whatever other buzzwords mean servicing customers. It has grown into being the business of provisioning, protecting and servicing those accounts ensuring compliance with anti-money laundering (AML), PCI, SAS-70, HIPAA and other related regulatory compliance guidelines.
- The world is increasingly interconnected and moving towards real-time wireless access to everything. Otherwise known as ubiquitous or pervasive access. This drives the need for integration and usability (simplicity and ease-of-use).
- Increasingly sophisticated multi-factor biometrically authenticated devices are self-acquired and provisioned, (i.e. people buy their own mobile phones). Even today’s most BASIC no-frills phone has multi-factor authentication (MFA) built-in to guard against fraudulent use and privacy.
- Real-time risk and fraud detection and management become paramount.
The future of Issuing is, at its core, really about protecting and servicing Identities, Reputations and Relationships.
The company that architecturally dominates this capability will be a valuable part of the financial ecosystem.
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