Operators’ Opportunity in Emerging Identity Technologies

The habits and expectations of mobile users have changed dramatically since smartphones became standard. Constant mobile data connectivity provides immediate and reliable access to various services, from chat and social media apps to e-commerce mobile websites or apps. With the emergence of cloud-based storage, sharing and productivity services, the extent of what can be done with a mobile phone has massively expanded and brought even more options to users at a tap or a double-click.

Having things available any time and immediately, with no lag or administration, has also created the perception and the expectation that everything should work seamlessly at every point. This is most evident when it comes to login procedures, where the user is impatiently waiting for a one-time PIN to arrive in an SMS message, or a voice call to authenticate and complete the installation or login. It’s little wonder that there are a number of authentication options available, based on social media and cloud logins, or authenticator apps, touted as the safest option available. This satisfies the need for immediate access but also brings into question legacy authentication methods currently used.

SMS is the most widely used one-time PIN (OTP) delivery channel and with good reason – it’s platform and device agnostic, widely accessible and familiar to users, easy to deploy and cost-effective. It’s also a significant money maker for mobile operators, especially as P2P SMS continues to decline. However, new methods and technologies are appearing and quickly developing a business case by meeting the need for seamless authentication and supporting new, advanced use cases that SMS just cannot service.

Click the image to expand the 2FA process

These use cases are driven by new technologies and digitally native businesses that understand the needs of new generations of consumers and technology users. The privacy and security conscious users will look for more resilient and flexible solutions than OTPs delivered in an SMS, and from the business standpoint, enterprises will be ready to pay a premium for new services demanded by their audience.

This presents mobile operators with the task of future-proofing their enterprise business to stay a relevant player in the field by adding new authentication methods. When it comes to user authentication, few competitors can match mobile operators’ deep connection with their subscribers and the wealth of data that they have access to. That’s what operators need to leverage in order to compete with emerging authentication providers.

Mobile Identity is one of the emerging tech solutions for better user experience, accommodating new, currently unavailable use cases. Mobile Identity (MI) allows operators to create new revenue streams, using subscriber data to enable various use cases, from basic silent mobile verification to more elaborate cases such as form filling.

Click the image to expand the Mobile Identity process

MI also offers benefits to operators’ subscribers – less hassle, more security during e-commerce checkouts, and SIM card hijacking protection. All of these use cases are currently not available to them, especially not in a seamless and user-friendly way, but they hold great appeal for users looking for streamlined mobile and digital experiences.

Operators have the central role in the Mobile Identity value proposition. Their relationship with the subscribers, their image and reputation with enterprises, as well as the ability to scale and expand services, are the key drivers of the MI ecosystem, but there’s also space for other players.

The A2P SMS ecosystem has been growing for well over a decade, with messaging providers now equal partners and the key innovators in the messaging and cloud communications space. The A2P model of cooperation can be easily translated into the next-gen authentication ecosystem bringing together operators and providers.

In a situation where not all operators are prepared to launch MI services, either for technical or financial reasons, the opportunity is still there with a 3rd party product.Infobip’s iGate solution enables a quick rollout of MI services, complete with hardware, business logic and software, and a number of existing Infobip enterprise clients interested in this service.

Infobip has mastered the managed service business model and is translating that experience into the iGate value proposition, combining the low resource and investment requirements from the operators, with the global client base and experience with business models and use cases.

Through iGate, the operator and Infobip can quickly launch a range of authentication use cases, from silent mobile verification, periodic transaction checks, SIM swap checks, and KYC services, without affecting existing authentication revenue streams and processes.

The new age of user verification is here. Enterprises are lining up to test and launch advanced use cases that cater to digitally native consumers, a highly desirable demographic that embraces new technologies and sets tech trends. Getting in on the opportunity doesn’t need to be a long and complicated process, as Infobip’s client testimonials have proven in the past.