LSEG Takes on Digital Identity at Money20/20
The digitalisation of financial services has created both opportunities and vulnerabilities, according to London Stock Exchange Group (LSEG) executives speaking at Money20/20.
Dal Sahota, Head of Trusted Payments at LSEG’s Risk Intelligence Division, observes that while digital transformation has modernised business processes, it has also exposed new risks.
“The digitalisation of workflows has been fantastic,” says Dal, "but it's created more vulnerabilities in aspects of fraud, particularly push payment and vendor fraud. With interest rates rising, cashflow is of critical importance.”
Bridging the Digital Identity Gap
Daniel Flowe, Head of Digital Identity at LSEG, emphasises the democratising potential of digital finance while highlighting persistent barriers.
“The digital economy offers an unprecedented opportunity for financial inclusion because if you can access the internet, you can participate,” he explains.
“However, one in eight people globally don't have an identity that can be verified digitally.” Daniel also notes that current verification tools often contain inherent biases that “negatively affect people with different skin tones or ethnicities”.
To address these challenges, LSEG has launched a new account verification product spanning 22 markets globally.
“At the point of payment initiation, verification of the payee is absolutely critical,” Dal explains. “Our new product helps businesses prevent criminal activity in both B2B and B2C spaces, getting in front of the problem rather than dealing with the aftermath.”
The Privacy Challenge
The tension between robust security measures and user privacy remains central to digital identity management.
“None of us want our personally identifiable information running rampant in the world,” says Daniel, “but we all want personalised, frictionless, fast onboarding experiences”.
Current identity verification often requires extensive data sharing with limited user control. “Today, when you onboard with a bank or a new platform, you're providing them identity information that, in many countries, they can hold indefinitely,” Daniel notes.
“What excites me is the increased ability for consumers to have control over their information.
“The idea of having a digital identity that's completely within a consumer's control, where they can limit how much information is shared and withdraw consent at any time, is a future that all of us can comfortably embrace.”
Our conversation came after Daniel Flowe discussed the importance of digital identities at FinTech LIVE London in April 2024.
You can see more of our upcoming FinTech LIVE events for 2025, spanning Singapore, Dubai, New York and London, by clicking the link here.
**************
Make sure you check out the latest edition of FinTech Magazine and also sign up to our global conference series – FinTech LIVE 2024.
**************
FinTech Magazine is a BizClik brand.
