Presentation on the future of e-identity in Europe

1. Single European Identity Area
Can We Achieve A Single European Identity Area?
Douwe Lycklama – London April 8, 2012 tomorrow’s transactions today

2. 2 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

3. 3 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

4. Douwe Lycklama, Partner @ Innopay
• EE (engineering TU Delft, 1990)
• Consumer electronics background (Philips)
• Innopay since 2002: payments, e-identity, e-
invoicing
• Passion for consulting and product development
− Complex intangible products/services
− Collaborative innovations
• “Make this world a (little) better place ,
with better services”
• Co-founder and strategist of the NL E-identity
framework eHerkenning
• Member of SSEDIC
• Only just begun …
4 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

5. Agenda
1. What is e-identity?
2. How is e-identity doing today?
3. The European way forward
5 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

6. What is e-identity?
E-identity defined in daily use
tomorrow’s transactions today

7. Identity is all around us
7 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

8. First some Lingo….
• Users: consumer or a person acting on behalf of a business or government
• Relying party: A party that want to know who is ‘knocking on his door’
• E-identity: An electronic identity describes a subject (person, organisation or
system) via its properties (attributes), in the online/mobile world, in a
consistent and verifiable way
• Identification: Identification is the process where a user makes himself known
to the relying party in order establish a connection or to gain access to the
system/website/web service etc.
• Authentication: The process of making sure that an identified person or entity
is indeed ‘the person who he says he is’
8 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

9. Identity use: Trust, Compliance & Convenience
Trust Compliance Convenience
9 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

10. Internet = customer not present
10 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

11. E-identity credentials exist in many forms
11 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

12. Value drivers of e-identity
Why e-identity? User Relying party
Higher trust Know who you are dealing with
Compliance Obey the law
Be recognised & better Better conversion & less
Easy of use
services costs
12 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

13. What makes a good service proposition?
Profit Pleasure Practicability
Source: Prof. Betty Collis, 1993
13 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

14. E.g. mobile telephony?
Benefit Realised?
Profit More efficiency in
society, low cost
Pleasure Use everywhere, more
contact, social
interaction, global
reach
Practicability Similar to ‘old
telephony’, extend old
habits
14 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

15. E.g. online banking?
Promise Realised?
Profit More efficiency in
society, no paper
Pleasure Use everywhere, global
reach
Practicability New habits needed
because of security
15 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

16. How is e-identity doing?
Along the 3Ps
tomorrow’s transactions today

17. How does e-identity score on the 3Ps?
Promise Realised?
Profit Cost saving in business
processes
Better service quality
Pleasure Use everywhere,
seamless working
Practicability Ease of use, easy to on
board
17 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

18. More specific for e-identity
Promise Key issue to be solved
Benefits (Profit) 1. Cost saving in Huge untapped
business processes potential due to low
penetration, still many
2. Better service paper processes, lack of
quality awareness
Functionality (Pleasure) 3. Reach for both users Fragmented solutions,
and relying party silo thinking
Ease of use 4. Limited barriers to Many sign up processes,
(Practicability) on board and to use too easy means
unsecure
18 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

19. Key issue 1 and 2: cost and quality
• Cost saving: less paper, more straight through
− Sign up
− Log in
− Digital contracting
• Better quality: ease of use for customer
− Mobile: less typing small screens
− Recognise returning customers, profiling
• Government policies geared toward digital services. Governments can
enforce ‘adoption’ by killer apps (tax, permits, subsidies)
• Awareness in business relatively low, except in e-commerce sector
 Huge market potential
19 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

20. Key issue 3: the current market is full of silos
Authentication ‘Mandate’
Citizen Government
Company
Government Company
20 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

21. Key issue 3: large number of passwords
• As a result customer are put up with large numbers of credentials
21 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

22. 1st generation e-identity: direct model
User Relying party
(Person, Provide Identity (Business,
Entity) Government)
22 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

23. 2nd generation e-identity: platform
User Relying party
(Person, Provide Identity (Business,
Entity) Government)
User name /
password
Identity platform
Identity platform
Identity platform
23 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

24. Key issue 4: ease of use
• Ease of use is a trade off with security
− Avoid lengthy sign up processes
− Security should be managed adequately
24 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

25. The European way forward
Single European Identity Area?
tomorrow’s transactions today

26. The key to EID success is
Interoperability
(…or the whole planet will have to sit with one provider)
26 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

27. The same key as to other two
sided markets
payments
invoicing
telecom
…
27 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

28. Why interoperability? Remember 3P’s
• Users: want to identify themselves with as much as possible relying parties
− Want less passwords
− Harmonised user experience
Maximise ease of use, minimise hassle
• Relying parties: want to identify as much as possible users
− Want lower costs
− Maximum audience
Minimise cost, maximise usage / sales / conversion
28 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

29. Interoperability in a fragmented
market implies cooperation
between
competing parties
29 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

30. Cooperation on
Business, functionality,
infrastructure
30 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

31. Europe’s blueprint
31 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

32. 3rd generation e-identity: Trust Framework
User Relying party
(Person, Provide Identity (Business,
Entity) Government)
Authenticate Network Access
Authentication Authentication
Authentication
Identity issuer Real-time Routing Authentication
Identity router
Provider
Authentication Router
Authentication
Provider Router
Provider Router
32 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

33. Remember payments ?
Buyer Merchant
Issuer
Authentication Acquirer
Authentication
Authentication Authentication
Provider Router
Provider Router
33 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

34. Trust Frameworks: a few defined around across
the globe
• Open Identity Exchange (OIX)
− Different Trust Frameworks for different contexts
− The U.S. Government ICAM Trust Framework, The Telcom Data Trust Framework, Respect Trust
Framework
− A Trust Framework is a certification program that enables a party who accepts a digital identity
credential (called the relying party) to trust the identity, security, and privacy policies of the party who
issues the credential (called the identity service provider) and vice versa.
• bankID
− One Trust Framework developed by several large Nordic Banks
− BankID is the leading electronic identification in Sweden, and is used for multiple context
− Nine issuing banks, just banks…
• eHerkenning
− One single trust framework for multiple contexts
− A Trust Framework is a coherent set of agreements in order to facilitate a digital identity ecosystem
which is operational in order to collaboratively create trust, security and privacy to serve end users in
the market.
• Key differentiators
− OIX uses different Trust Frameworks for different contexts, bankID is just offered by banks
− eHerkenning is one e-identity Trust Framework for every context
34 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

35. More initiatives
• UK Identity assurance program
• USA: NSTIC
• STORK: EU interoperability of ID tokens
• Standardisation: SAML, XACML, ISO, …
• EU regulation
35 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

36. Key points of EU proposed regulation
• Aimed at cross border acceptance of government e-identity tokens for
government services
• Digital signature (repair earlier 1999 directive), electronic seals and time
stamping
• Countries can register their e-identity token in Brussel => all EU27 countries
have to accept the token
• The registering country has to:
− accept liability in return
− offer free on-line access for relying parties to the tokens
• This seems to incentivise countries to issue high assurance level EID’s and
register them with EU
36 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

37. Reflection on EU proposed regulation
• Which problem are we solving? Only the governments as relying party or
the European society at large?
− Marrying, medical, tendering, incorporation, studying: how often does this
happen in a persons or companies life? Or as part of the whole economy?
• No business-to-business and business-to-consumer focus, therefore not
addressing the fragmentation in the most relevant area’s.
• No common understanding of levels of assurance will hamper
harmonisation. Relying parties will need to know what to trust and what
not
37 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

38. Potential winners in the identity market
• Regulated industries: banks, governments, telco’s => all have an existing
relation with the customer
• Social media players: Facebook, Google, LinkedIn
• Specialised (local) e-identity players
38 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

39. Huge challenge: business model
• Benefits for the relying party not aligned with cost of the user for the
credentials and check
• Willingness to pay increases of time: as more services become available, it
becomes more attractive to have an e-identity token
• Governments can drive adoption via exclusive and compulsory service (e.g.
tax)
• Innovation still has to take place in this domain
39 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

40. Take away’s of this session
1. E-identity is the critical component for advancing online business, because
it adds trust. Trust leads to more business. It is the ‘new money’
2. E-identity should be ‘right’ (3P!) for BOTH user and relying party, including
the business model. That will push for ‘non silo’ and ‘multiple assurance
levels’
3. Standardise part of today’s e-identity offerings in such a way that they
become easier available for relying parties. Via separate gateways or as
part of a trust framework. We can learn from the payment industry here!
4. Take the non-national view (first European, then global?)
40 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

41. Above all: think 3P!
Profit Pleasure Practicability
Source: Prof. Betty Collis, 1993
41 Toward a Single European Identity Area? Douwe Lycklama – 8 April 2012. © Innopay BV. All rights reserved.

42. Thank you
For your attention
Douwe Lycklama - douwe@innopay.com tomorrow’s transactions today