The future of identity: Preparing for mobile driver licenses

The identity verification landscape is undergoing a rapid transformation, propelled by technological advancements, the establishment of REAL ID for Americans and evolving consumer expectations. 

Meanwhile, industries are actively seeking to create more streamlined and secure experiences. From cruise lines optimizing passenger onboarding to car rental companies aiming for better customer service and greater efficiency, the demand for seamless and reliable identity verification is higher than ever. 

Mobile driver’s licenses and digital IDs are emerging as pivotal elements in this evolution, promising a future where identity is more portable, convenient and deeply integrated into our daily routines.

Understanding REAL ID and Its Impact

A significant development in the identity verification landscape is the Real ID Act, which is a federal law that sets security standards for driver's licenses and identification cards. The law was passed in 2005 in response to recommendations from the 9/11 Commission. 

While its implementation has been delayed several times due to technological delays and the COVID-19 pandemic, starting on May 7, all domestic travelers in the U.S. must possess a state-issued ID card or driver's license that adheres to the REAL ID standard. The Transportation Security Administration is strongly advising individuals to acquire REAL IDs as soon as possible to avoid potential delays as the deadline approaches.

REAL ID is designed to enhance the security of driver's licenses. A REAL ID is marked by a star in the corner, and individuals without this mark on their state-issued ID or driver's license will need to obtain one to pass through security checkpoints and board domestic flights.

Obtaining a REAL ID typically involves a visit to the Department of Motor Vehicles and requires documentation such as a valid ID, passport, or birth certificate, proof of Social Security number and date of birth, and two documents verifying state residency. 

REAL IDs are also necessary for accessing federal buildings that require identification. According to a recent article by Conde Nast Traveler, many Americans still do not have REAL ID compliant driver’s licenses.

The Current State of Identity Verification

Currently, identity verification relies heavily on visual cues and physical documents. Some companies utilize computer vision models, coupled with data integrity checks to ascertain the authenticity of IDs. When done right, this can facilitate the development of incredibly compact mobile device options. 

The absence of a national ID card in the U.S. further complicates the process. Driver's licenses serve as the primary form of identification, but connecting to each state's Department of Motor Vehicles is both expensive and complex. 

Given that each DMV operates differently and major states like New York, California and Texas are not part of a unified consortium, the establishment of a seamless, nationwide identity verification system is significantly hindered.

The Promise of Mobile Driver Licenses and Digital IDs

Mobile driver’s licenses offer a promising solution by digitizing identity credentials and securely storing them on smartphones. A few states, such as Arizona, are already in the process of developing mDLs, signaling a move toward digital identity. 

While adoption in the U.S. is still in its nascent stages, we anticipate that digital IDs will gain traction over the next five to seven years. Europe and parts of Asia are more advanced, and already have functioning digital ID systems in place.

For instance, India employs a national ID card called Aadhaar, which incorporates biometric data. This system enables swift and secure identity verification, as businesses can connect to the government database and verify a user's identity in real-time. Saudi Arabia and Indonesia have also adopted similar models, underscoring the scalability of such systems.

Challenges and Opportunities in a Connected World

While the shift to mobile driver’s licenses and digital IDs provides advantages and challenges:

• Data connectivity and privacy: A connected identity ecosystem necessitates secure data connectivity to government databases. It is imperative to address privacy concerns and ensure the protection of sensitive information.
• Interoperability: For mobile driver’s licenses to be truly effective, they must be interoperable across different states and countries. Standardized protocols and frameworks are essential to guarantee the seamless recognition and acceptance of digital IDs.
• Fraud prevention: As identity verification becomes increasingly digital, the risk of fraud escalates. Advanced technologies, such as liveness detection for credit cards, and collaborative fraud-fighting efforts are crucial to outpace malicious actors.

Despite these challenges, the benefits of a connected identity ecosystem are significant:

• Enhanced user experience: Mobile driver’s licenses can streamline processes including airport check-in and car rentals, by eliminating the need to present physical documents.
• Improved security: Digital IDs can incorporate advanced security features, such as biometrics and encryption, making them more resistant to counterfeiting than traditional documents.
• Reduced fraud: Real-time verification against government databases can aid in preventing identity theft and fraud.

Preparing for the Future of Identity

To prepare for the future of identity, organizations and governments must adopt proactive measures:

• Embrace digital transformation: Invest in technologies and infrastructure to facilitate the issuance and acceptance of mobile driver’s licenses and digital IDs.
• Foster collaboration: Promote collaboration among government agencies, private companies, and industry groups to develop standardized protocols and frameworks.
• Prioritize Security: Implement robust security measures to safeguard sensitive data and prevent fraud.
• Educate consumers: Increase awareness of the benefits and security features of mobile driver’s licenses and digital IDs to encourage widespread adoption.

For businesses, particularly those in the travel, hospitality and banking sectors, preparing for the widespread adoption of REAL ID and digital IDs is crucial. This involves ensuring that their systems are capable of verifying the new IDs and training staff to recognize them. The integration of REAL ID and digital IDs can streamline identity verification processes, and so potentially enhance customer experience and reduce fraud.

For travelers, understanding the requirements for REAL ID is essential to avoid disruptions. Those who do not have a REAL ID-compliant driver's license or another acceptable form of identification like a passport, beginning May 7, will not be allowed to board domestic flights.

The transition to mobile driver’s licenses and a connected world presents a significant opportunity to enhance security, improve user experience and reduce fraud. The embracing of technology like artificial intelligence and biometrics addresses the challenges of identity verification. The true breakthrough will occur as bureaucratic barriers are shattered. REAL ID implementation will go a long way in this regard.

Albert Roux is EVP of Product, Identity for Microblink Identity.