How Daon and G+D Are Unifying Identity, Payments, and Digital Onboarding

Good morning everyone. My name is Clive Burke from Daon. I’m president of EMEA in Asia. What we do is customer onboarding, customer authentication, and I lead the EMEA in Asia business and strategic initiatives across the business. And I’m here with Philippe Serres from GND. Philippe? Yes, absolutely. Hello, good morning, good afternoon. My name is Philippe Serres. I’m the Chief Sales Officer of the ePayment division of GND. Great. Philippe, it’s great to be here talking to you. Part of the partnership, we have a lot to cover. But actually, first thing I wanted to ask about was we’ve seen a lot here at this conference and in other places we talk about this idea of convergence and also things changing and fraud shifting across channels and the need to be able to deal with customers across different channels. And also AI coming into the picture and how do we deal with those threats and how do we be consistent. So what’s your thoughts on that, VeriFace? Yeah. So what we’ve been seeing over the past months recently has been a convergence, a double convergence actually. So first one is a convergence between payments and identity. So those two were kind of like separate and now are getting together and merging together. And they’re merging together across two dimensions. The first one is at the KYC level to initially onboard and know a customer. And the second one, which we’re seeing now with also some regulation, is at the authentication level, meaning that every time you do a payment, you need to authenticate yourself through an identity. So that’s the first level of convergence we’ve been seeing. The second level of convergence we are seeing is a merge between the physical and the digital world, where today you have the ability to onboard people physically within within a branch, and you need to have the tools that enable you to ensure that that person that you have is not a fraud. And in the same time, need to also to be able to onboard people digitally, meaning the ability to, for example, take a passport, you know, with a biometric chip into there through NFC technology, be able to authenticate the person that you are having within the onboarding. Great. So it’s the combination of like the Daon and GND technology that’s allowing this to happen or enabling this. But what you’re trying to say is that someone could onboard in one channel and complete in another and vice versa. Is that right? That’s exactly what we’re seeing. And, you know, our objective is to ensure that the bank can onboard as many as good customers as possible. And in order to do that, you need to offer the possibility to somebody to, as you said, onboard somebody first digital and then potentially physically or the opposite. Start with a physical onboarding and then move to the digital. And it should be seamless for the customer and for the bank. Whatever channels you use, you need to be onboarding the right customers to increase your revenue. So basically, you’re saying it’s also about conversion then. So you can convert more customers through the process of registering new customers through the KYC process. Absolutely. But I guess you’re also saying that you’re getting closer to that consistency across channel from a security perspective in the know your customer process as well. Absolutely. And and I have you fully nailed it. I think it’s absolutely around the ability to be consistent across those two worlds that initially were separate and that are now converging. Alright. So, Clive, we’ve been talking a lot about, you know, EU ID wallets. There’s been a lot of of of buzz around this. We know there’s a regulation that is coming into place. Whenever I travel overseas, a lot of other countries and people are asking me about this regulation and what is gonna be the impact of that. We know that by end of twenty twenty seven, banks will need to be ready. Right? Could you maybe elaborate a little bit on what is the implication for the bank and what are consequences of this new regulation? Yeah. To be ready shouldn’t be understated. So as you said, there’s global eyes on Europe because of the EU digital legislation, which is amazing because it’s gonna bring this concept to all EU citizens. So every member states, the governments have to issue a wallet to a citizen. What does that mean? It means that a citizen will have an app on their phone issued by the government, and within that app, there’ll be credentials. But the first one will be a personal credential that you can use as an alternative to an ID card or passport, and then you can use that to assert your identity when you’re engaging with anybody. So whether it’s a bank or a fintech, you can now use that EU digital wallet in the future to onboard in a KYC process. And in the past where they might have said, show me your passport or re ID, now the customer or user can use their EU digital wallet. So by the end of twenty twenty seven, when you said ready, the banks and fintechs have to be ready to accept the EU digital wallet from people in any of the member states that have them issued by their governments. So that’s the first thing. The second thing, is less known but is definitely coming, is that users should be able to use that wallet to authenticate to their bank accounts. So in the past, you have this thing called strong customer authentication. The bank issues you the credentials and you use those credentials to get onto the banking app and initiate payments, proof payments. With the EU digital wallet, the citizens should be able to use the wallet to authenticate to the bank as well. So that’s really what’s coming. Now on a broader level, there are mobile credentials globally in different sectors, but really here, financial services, banks need to get ready. And what about cross border then within the Europe? What is the impact on cross border opening of accounts and and transacting? And that’s really the elegance of this is that every member state will issue an EU digital wallet, and every member state will put a personal credential in that wallet. And therefore, you should be able to onboard your bank in Germany according to EU standards from Ireland or vice versa. Right? But, of course, there while there’s common frameworks and standardization, there’ll always be work to be done to make sure that we trust the EU wallet or we trust the Italian wallet, we trust the Irish wallet and so on. So Philippe, let’s talk about the G and D Daon partnership. So you’re a security tech company of scale. Like, what is the partnership? What are what are your customers, G and D customers, what can they expect from this partnership between us? Yeah. I absolutely agree. I mean, G and D is a fourteen thousand people company, three point three billion in terms of revenue. We work across forty one countries. And I think one of the specificities of of GND is that we work across different verticals. We work across central bank. We work a lot with central banks, with governments, and with commercial bank. And this the fact that we work with so many different verticals put us into a unique position because we are the cross center between identities, payments, and digital solutions. So for example, of course, you know, we we’ve been very active into the world of digital payment, whether it’s tokenization, pass keys, SRC, and and and all the solutions that help to bring the the payments into the digital world. But we also have found that within our value chain, right, we want to also put emphasizes into the KYC component. And when you look at it, many of our clients and customers that come to us as a trusted partner are asking us whether we can support them in there. And that’s where we saw that know, the partnership between Daon and GND absolutely makes sense. But I would be interested to understand what it means for you from your perspective. The first thing is GND is a security tech company like you just elaborated, which means you’ve got deep credentials and pedigree in what it means to keep banks secure, to keep fintech secure, even to keep government secure. So you understand security really well. But what we’re bringing with you to the customers is this concept of orchestration. So we the convergence you mentioned earlier across tokenization payments, identity, physical and digital. So we bring an orchestration platform that can orchestrate from an identity perspective customer onboarding in multiple channels like you mentioned, and then ongoing customer authentication across multiple channels for multiple use cases. So we have this orchestration platform that does identity verification, that does continuous trust, that does device signals. And that’s something that your customers can avail of. But also, it’s it’s a two way partnership. So what you’re bringing to us is we’re getting the benefit of some of the G and D technology as well to bring to our customers. For example, you’re strong in three d secure and payment confirmations in tokenization, and that’s things that we can bring to our customers. And also, you’re strong from a border control, passport reading capability, and some of those devices and technology that can be used in financial services, like we mentioned earlier, to do in branch KYC and customer onboarding. So it’s really a two way partnership. Right. So you can bring things to your customers and we can bring things to our customers. Absolutely. And we look forward to the continuity and strengthen that partnership across the different regions of the globe. And we have already all the teams across the different region that have been engaged together on some opportunities, and and we look forward to making it as successful as possible. Amazing. Thanks so Thank you very much, Clive. Thank you. Thank you.