Do reusable digital identities solve returning user friction or just move the problem somewhere else?
We have a meaningful returning user base that has to go through identity verification again when they come back after a gap or access a new product line. The drop-off at that step is something we have been trying to solve for a year.
Reusable digital identity keeps coming up as the answer in vendor conversations. The pitch is that a user verifies once and that credential can be reused across platforms and sessions without repeating the full document and biometric flow.
What I cannot get a clean answer on:
- If the original credential comes from a different platform, how does our compliance layer treat it and who decides if it meets our standard?
- What happens when the credential needs to be refreshed, does the friction just move to that moment instead?
- Who owns the liability if a reused credential was originally issued against a fraudulent identity?
Trying to understand if this solves the problem or relocates it.