By How automakers can become trusted digital identity providers. The automotive industry has the potential to offer secure and convenient identity solutions for consumers, according to a recent article by Automotive World. The article argues that automakers have the necessary capabilities and credibility to become digital identity stewards, and that they can leverage this opportunity to enhance their customer relationships and create new revenue streams.
Digital identity management is a growing challenge and opportunity in the digital era. Digital identity management refers to the process of verifying and authenticating a user’s identity for accessing various online services and platforms. As consumers use more and more digital services, they face the burden of managing multiple passwords and credentials, which can compromise their security and privacy. Moreover, many digital services rely on third-party identity providers, such as Google and Facebook, which can pose risks to the user’s data and control.
To address these issues, there is a need for more secure and user-friendly identity solutions, such as biometric authentication, passwordless login, and decentralized identity. These solutions can offer more convenience, privacy, and trust to the users, as well as more efficiency and innovation to the service providers.
Automakers have the unique advantages and assets to become digital identity stewards
Automakers have the unique advantages and assets to become digital identity stewards. Automakers have several factors that make them suitable for providing digital identity solutions to their customers, such as:
- They have established billing and verification relationships with their customers through leasing and financing agreements, which can be used to create digital wallets and credentials.
- They have dedicated and frequently used mobile applications, which can enable biometric authentication and identity verification for accessing various in-car and out-of-car services.
- They have a high level of trust and loyalty among their customers, who value their brand reputation and quality.
- They have an exclusive and recurring audience in the vehicle, which can be exposed to a range of subscription-based services and experiences, such as entertainment, navigation, and e-commerce.
By becoming digital identity stewards, automakers can offer their customers a seamless and personalized experience across different services and platforms, both inside and outside the vehicle. They can also create new revenue streams by monetizing their identity data and offering value-added services to their customers and partners.
Automakers are already taking steps to integrate digital identity solutions into their vehicles and services
Automakers are already taking steps to integrate digital identity solutions into their vehicles and services. For example, at CES 2024, Mercedes-Benz showcased its new MBUX virtual assistant and native integration of various third-party apps, such as Booking.com, Zoom, Microsoft Teams, and Antstream Arcade. The automaker also announced its partnership with Mastercard to enable secure and convenient payments from the vehicle.
Other automakers, such as Ford, Toyota, and Hyundai, have also announced their plans to offer digital identity solutions to their customers, such as facial recognition, voice authentication, and blockchain-based identity verification. These solutions are expected to enhance the customer experience, loyalty, and retention, as well as to enable new business models and partnerships.
The article concludes that automakers have a golden opportunity to become one of the few major identity stewards that consumers collectively trust, and that they should seize this opportunity to differentiate themselves from their competitors and to create value for their customers and stakeholders.