A Blueprint for Digital Identity The Role of Financial Institutions in Building Digital Identity An Industry Project of the Financial Services Community | Prepared in collaboration with Deloitte Part of the Future of Financial Services Series • August 2016 Foreword Consistent with the World Economic Forum’s mission of applying a multi‐stakeholder approach to address issues of global impact, the creation of this report involved extensive outreach and dialogue with the financial services community, innovation community, technology community, academia and the public sector. The dialogue included numerous interviews and interactive sessions to discuss the insights and opportunities for collaborative action. We extend sincere thanks to the industry and subject matter experts who contributed their unique insights to this report. In particular, the members of the Project’s Steering Committee and Working Group, who are introduced in the following pages, played an invaluable role as experts and patient mentors. We are also very grateful for the generous commitment and support to Deloitte Consulting LLP in the U.S., an entity within the Deloitte1 network, in its capacity as the official professional services advisor to the World Economic Forum for this project. Contact For feedback or questions, please contact: R. Jesse McWaters, Lead Author [email protected] +1 (212) 703‐6633 1 Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a detailed description of DTTL and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. WORLD ECONOMIC FORUM | 2016 2 Acknowledgements WORLD ECONOMIC FORUM | 2016 3 Acknowledgements Members of the Steering Committee The following senior leaders of global financial institutions have provided guidance, oversight and thought leadership to the “Disruptive Innovation in Financial Services” project as its Steering Committee: Bob Contri Jason Harris David Puth Vice Chairman, Chief Executive Officer, International Chief Executive Officer, Deloitte & Touche LLP Property and Casualty, XL Group CLS Group David Craig Michael Harte William Sheedy President, Risk and Financial, Chief Technology Officer and Chief Global Executive, Corporate Strategy, M&A, Thomson Reuters Operations Officer, Barclays Government Relations, Visa John Flint Axel Lehmann Dietter Wemmer Chief Executive Officer, Retail Banking and Chief Operating Officer, Chief Financial Officer, Wealth Management, HSBC UBS Allianz Kim Hammond Anju Patwardhan Chief Operating Officer, Chief Innovation Officer, Deutsche Bank Standard Chartered Bank WORLD ECONOMIC FORUM | 2016 4 Acknowledgements Members of the Working Group The project team would also like to acknowledge the following executives of global financial institutions who helped define the project framework and shape strategic analyses as its Working Group: Tom Brown Victor Matarranz Bob Reany Partner, Director of Strategy & Chief of Staff to the CEO, SVP and Group Head, Identity Solutions, Paul Hastings Santander MasterCard Lena Mass‐Cresnik, PhD Neil Mumm Peter Rutland Head of Innovation, Strategic Product VP Corporate Strategy, Senior Managing Director, Management, BlackRock Visa CVC Capital Partners Christof Edel Max Neukirchen Nicolas de Skowronski Global Head of Trading Strategy & Business Group Head of Strategy, Chief of Staff, Development, Thomson Reuters JP Morgan Chase Bank Julius Baer Rob Galaski (Project Advisor) Christine O’Connell Huw Van Steenis Head of Financial Services, Global Head of Strategy &Business Managing Director and Head of Financial Deloitte Development, Thomson Reuters Services Research, Morgan Stanley Dorothy Hillenius Robert Palatnick Colin Teichholtz Director of Corporate Strategy, Managing Director and Chief Technology Partner & Co‐Head of Fixed Income Trading, ING Architect, DTCC Pine River Capital Marc Lien Kosta Peric Fabien Vandenreydt Director of Innovation and Digital Deputy Director Financial Services for the Head of Markets Management, Innotribe & the Development, Lloyds Banking Group Poor, Bill and Melinda Gates Foundation SWIFT Institute, SWIFT Matthew Levin Justin Pinkham EVP and Head of Global Strategy, SVP and Group Head, Payments Innovation, Aon MasterCard WORLD ECONOMIC FORUM | 2016 5 Acknowledgements List of subject matter experts (1 / 2) In addition, the project team expresses its gratitude to the following subject matter experts who contributed their valuable perspectives through interviews and workshops (in alphabetical order): Mukul Ahuja Deloitte Canada Chris Ferguson UK Cabinet Office Christoph Albers SWIFT Jerry Fishenden VoeTek Alex Batlin UBS Marissa Flowerday TradeMe Eric Benz Credits Conan French IIF Peter Berg Visa Emilio Garcia Santander Vikram Bhat Deloitte & Touche LLP Joe Guastella Deloitte Consulting LLP David Birch Consult Hyperion Alka Gupta Global ID Francis Bouchard Hamilton Place Strategies Aran Hamilton DIACC Andre Boysen SecureKey Jonathan Hardinges Thomson Reuters David Brewer Digital Catapult Adrienne Harris National Economic Council, The White House Ben Brophy ENTIQ Jonathan Hayes Julius Baer Tom Brown Paul Hastings Dorothy Hillenius ING Preston Byrne Eris Industries Bill Hodash DTCC Claire Calmejane Lloyds Banking Group Rainer Hoerbe The Kantara Initiative Alicia Carmona Identity 2020 Chuck Hounsell TD Canada Nicolas Cary Blockchain Arne Vidar Huag Signicat Shawn Chance Nymi Afsar Hussain GSMA Emily Clayton Bank of England Marta Ienco GSMA John Clippinger MIT Media Lab Raj Iyer BNY Mellon Jeff Coleman Ledger Labs Natasha Jackson GSMA Wayne Crombie Citigroup Charlotte Jacoby Agency for Digitization, Ministry of Finance, Denmark Malcolm Crompton Information Integrity Solutions Hyder Jaffrey UBS Stephen Cross Aon Andrew Johnston TELUS Mark Davies Avox Ltd. Tanis Jorge Trulioo Howard Davis RBS Sean Kevelighan Zurich Insurance Group Nicolas de Skowronski Julius Baer Alim Khalique Bank of America Merrill Lynch Rachel Dixon Digital Transformation Office of Australia Hwan Kim Deloitte Canada Ivan Djordjevic Deloitte UK Dan Kimerling Standard Treasury Justin Dombrowski Historiocity Tech Philipp Kroemer Commerzbank AG Jon Duffy TradeMe Jaap Kuipers Kantara Initiative Carlo Duprel Deloitte Tax & Consulting, Luxembourg Jo Lambert Paypal Andre Durand Ping Identity Ian Lee Citi John Edge Digital Stored Value Association Chris Locke Caribou Digital Anna Ewing Nasdaq Joseph Lubin Consensys Daniel Feichtinger Digital Asset Holdings Adam Ludwin Chain Christian Lundkvist Consensys WORLD ECONOMIC FORUM | 2016 6 Acknowledgements List of subject matter experts (2 / 2) In addition, the project team expresses its gratitude to the following subject matter experts who contributed their valuable perspectives through interviews and workshops (in alphabetical order): Joanna Marathakis Deloitte Transactions and Business Analytics LLP Rajesh Shenoy Citi Stephen Marshall Deloitte UK Nick Smaling Deloitte Netherlands Simon Martin LeapFrog Investments Stan Stalnaker HubID Todd McDonald R3CEV Matthew Stauffer Clarient Entity Hub Morgan McKenney Citigroup Gavin Steele Lloyd's of London Adel Melek Deloitte Canada Ashley Stevenson ForgeRock Pat Meredith Canadian Payments Taskforce Matt Stroud Digital Catapult Paul Morgenthaler Commerzbank Paul Szurek Blockchain Renny Narvaez BNY Mellon Pavlo Tanasyuk BlockVerify Eddie Neistat AlixPartners Marc Taverner BitFury Nina Nieuwoudt Mastercard Simon Taylor Barclays Pascal Nizri Chekk Adizah Tejani Level39 Robert Palatnick DTCC Kenneth Tessem Finansiell ID‐Teknik BID AB Cheryl Parker Rose CFPB Don Thibeau Open Identity Exchange (OIX) Justin Pinkham MasterCard Michael Turner PERC Rick Porter Deloitte & Touche LLP Keith Uber GlobalSign Reinhard Posch Austrian Federal Government Eric Van der Kleij Level39 Dan Quan CFPB Huw van Steenis Morgan Stanley Rhomaios Ram Deutsche Bank Aneesh Varma Aire.io Kai Rannenberg Goethe University Ivan Vatchkov Algebris Investments Bob Reany Mastercard Roy Vella Vella Ventures Ltd. David Richards DIACC Helene Vigue GSMA Pierre Roberge Digital and Payment Innovation Consultant Franziska von Arnim Deutsche Bank Andre Romanovskiy Deloitte Canada Patrick Walker PERC Andrew Rudd AssureUK Colin Wallis Kantara Initiative Peter Rutland CVC Capital Partners Peter Watkins Government of British Columbia Wiebe Ruttenberg European Central Bank Derek White Barclays Joel Sacmar Daon Conor White Daon Jean‐Louis Schiltz Schiltz & Schiltz Greg Williamson MasterCard Charles Schwarz