The identity landscape is undergoing a major transformation and digital credentials are at the center of it.
In a recent live discussion, we explored how digital identity is reshaping Identity and Access Management (IAM) and Identity Governance and Administration (IGA). We were joined by two industry experts: Henrique Teixeira, SVP of Strategy at Saviynt, and Tim Cappalli, Senior Architect of Identity and Standards at Okta.
Together, they unpacked where digital ID credentials can deliver the most value, how to think about ROI, and what it will take to integrate these technologies into existing architectures.
Here are the takeaways from the session:
Strategic Shifts in Identity
- The identity market evolves in cycles.
- Example: Passkeys reimagining X.509 certificates.
- IGA now split into:
- “Full IGA” (complex, policy-rich).
- “Light IGA” (simplified adoption).
- Complexity is a major challenge:
- 50% of IGA projects fail due to implementation difficulty.
- Simplicity is deceptively hard to design.
Tech Trends Shaping IAM
- Digital verifiable credentials and passkeys are redefining user authentication.
- Passkeys:
- Bring strong, hardware-bound credentials to workforce devices.
- Eliminate the need for security keys with built-in biometric support.
- Digital credentials:
- Unlock new use cases like cross-company collaboration without federation.
- Enable decentralized trust through reusable verified claims.
- Caution:Digital credentials bring challenges of trust and standardization. Anyone can issue a credential.
Real-World Digital Credential Use Cases
- Sharing secure documents across companies without federation:
- Example: Google doc access for a Microsoft user. Trust the org, not the person.
- Workforce collaboration:
- Contractor or supply chain access without federated identity setup.
- Verifiable credentials as alternatives to:
- Federation.
- Manual onboarding.
- Fragile consumer account creation.
Digital Identity and Workforce Overlap
- Consumer-grade experiences expected in workforce environments.
- Simplicity + security = key driver.
- B2B collaboration use cases pushing demand for portable credentials.
IDV and Credential Integration in Workflows
- Identity Verification (IDV) now included in IGA flows (Henrique):
- Biometric, document-centric, mobile signal–based.
- Used to validate remote workforce or external contractors.
- Example: When someone opens a ticket, ID verification can re-authenticate identity securely.
Identity for Agents and AI
- AI agents and bots present emerging security risks:
- They hold high-privilege credentials, often managed by non-security professionals.
- Identity for machines is becoming a critical gap.
- Verification for AI agents will require new frameworks:
- Proving personhood (human vs. bot) is growing in importance.
- CAPTCHA-style proof of humanity may become default.
Credential Architecture Challenges
- Interoperability remains immature:
- Wallets use early OpenID Connect standards.
- Many credential APIs are still incomplete or unaligned.
- Classes of credentials:
- Long-term (e.g. birth certificate).
- Mid-term (e.g. employee ID).
- Short-term (e.g. loyalty card).
Wallets and Credential Managers
- Wallet = evolving concept:
- Password managers, system-level wallets, workforce-specific wallets all merging.
- Credential UX should mirror familiar experiences:
- Like tapping a card or entering a PIN.
- Users shouldn’t need to understand how the tech works, just outcomes.
Use Cases Driving Market Adoption
- Government credentials catalyze interest:
- Especially in the US (mDLs) and EU (EUDI Wallet).
- Private credentials gaining relevance too:
- Companies issuing credentials for proof of employment, account recovery, or digital receipts.
- Closed-loop vs. open-loop use cases:
- Issuer = verifier vs. cross-org use cases.
ROI and Merchant Adoption
- Benefits to organizations include:
- Improved security and breach prevention.
- Better privacy (minimal disclosure, selective sharing).
- Enhanced UX and onboarding flow.
- For merchants:
- Reduced need to store personal data = less risk.
- Challenges: Who funds this? What’s the business case?
Regulation, Risk, and ROI
- Henrique’s hypothesis: Adoption will require both:
- Regulatory pressure.
- Incentives similar to the credit card model (merchant networks, consumer convenience).
- Anticipated triggers for adoption:
- Security risk from non-human identities.
- Regulatory mandates for identity assurance.
- Return on investment through reduced fraud and friction.
Crystal Ball: Next 3–5 Years
- Tim’s prediction:
- 40% of enterprise onboarding will involve verifiable credentials.
- Derived employee IDs will gain traction for remote work and recovery.
- Henrique’s prediction:
- Developers and agents will drive adoption by embedding standards.
- AI-generated apps will bake in identity standards (e.g. passkeys, OpenID).
