In an era of unprecedented digital transformation and rising cyber-enabled crime, the financial services sector is under immense pressure to modernise how it protects and enables trust. Digital Identity is key to building the capability to withstand new attack vectors and protect that trust. As Adam Preis, Director of Product and Solution Marketing at Ping Identity, powerfully argued at The Banking Scene Conference Amsterdam, identity is no longer a back-office function, it is now a strategic asset that underpins trust, security, and innovation.

Drawing from his experience working with global banks and regulators, Adam outlined why identity and access management (IAM) is moving centre stage in the fight against fraud and financial crime, and how a shift in mindset, supported by converged IAM, is urgently needed.

Identity as the New Perimeter

Trust has always been central to financial services. Whether in the form of a handshake in the banking halls of Venice or biometric verification in a modern fintech app, the act of proving and recognising identity is foundational to any financial relationship.

Yet Adam warned that this foundational layer is now under threat. “We do not trust the integrity of identity within the entire ecosystem. That is really worrying,” he said, citing a trust rating of just 54% for current identity-related infrastructure in a cross-industry survey.

The digital perimeter has expanded dramatically. Banks today operate sprawling ecosystems, managing access for employees, customers, third-party vendors, AI systems, and even machine identities. This complexity has outpaced legacy and home-grown IAM (Identity and Access Management) systems, many of which are fragmented, outdated, and unable to keep pace with changes and deal with emerging threats.

“Identity is effectively the new perimeter across all those layers,” Adam said. “If we cannot trust that perimeter, then we’re potentially exposing every part of the infrastructure.”

A Modern Fraud Threat Landscape

The threats are real and growing more sophisticated. From industrialised phishing operations, fraud, scams and deepfake-enabled impersonation to insider threats and rogue actors exploiting over-permissioned access, fraudsters are no longer lone wolves. They are part of highly organised, tech-savvy ecosystems that understand identity better than many of the institutions they target.

“We’re helping customers create a consolidated view of identity. But likewise, malicious actors are doing the same thing on the dark web” warned Adam.

Artificial intelligence has turbocharged the problem, making it easier for criminals to replicate identities, steal credentials, and exploit weaknesses in a bank’s identity assurance approach. Identity is now the top attack vector for fraud and financial crime. Adam gave the chilling example of a large US bank where “rogue agents” successfully applied for jobs, gained access to critical systems, and carried out insider attacks, all enabled by weak identity vetting.

“Imagine this - a rogue agent applying for a job, getting over-provisioned access, being able to wreak havoc!” he exclaimed.

Continuous Verification: Beyond Onboarding

Many organisations continue to rely on static, one-time verification during account creation. This “set and forget” approach is no longer sufficient. As Adam explained, identity must now be continuously verified—across every touchpoint and every step in the user journey. “Verified trust is not just about onboarding. It’s about verifying identity at every stage of the journey, when appropriate.”

In practice, this means layering in contextual signals such as behavioural biometrics, device posture, and geolocation to determine when to step up authentication or restrict access. It also means unifying the processes of authentication (proving who you are) and authorisation (defining what you can do), so that access decisions are risk-based and dynamic.

This real-time decisioning is crucial for combatting fast-moving scams, such as authorised push payment (APP) fraud, which continues to rise sharply across Europe and beyond.

Mutual Trust: A New Paradigm

One particularly powerful insight Adam shared was the importance of mutual trust - a two-way verification process between bank and customer. In the current model, customers are constantly asked to prove their identity. But fraudsters can impersonate banks with alarming accuracy. The result is a growing wave of scams where customers unknowingly hand over sensitive information or funds.

As Adam stated, “What about the bank verifying their identity vis-à-vis the customer? Mutual verified trust is becoming a much more important paradigm.”

This concept of bilateral authentication could be a game changer in fraud prevention, giving customers confidence that they are truly interacting with their bank, not a scammer posing as one.

Managing Identity Across a Complex Ecosystem

Banks today operate in vast, interconnected ecosystems with fintech partners, open banking APIs, and embedded finance platforms. Each of these touchpoints introduces identity risk.

“Who manages the identity of third-party administrators?” he asked. “These are risks that have to be addressed.”

One area drawing increasing attention is machine and robotic identities, including AI agents that perform tasks on behalf of users. Questions about how to authorise, track, and revoke access for non-human identities are becoming urgent.

A key solution lies in decentralised identity models, where individuals and systems can carry verified credentials. This minimises the need to store and manage identity data centrally and makes it harder for fraudsters to compromise.

Regulation as a Catalyst for Change

The regulatory landscape is catching up. European reforms such as EIDAS 2.0, PSD3, PSR1, and the Digital Identity Wallet are set to introduce stricter rules for identity verification, strong customer authentication (SCA), and fraud mitigation.

“We have to evolve our thinking around how identity contributes towards trust and compliance,” Adam noted, highlighting the role of IAM in meeting these enhanced expectations.

Forward-thinking banks are not waiting for the regulators. They are investing in orchestration platforms, dynamic MFA, decentralised credentials, and identity-proofing tools that support compliance while enabling agility.

Identity as a Business Enabler

Beyond security and compliance, digital identity is becoming a strategic driver of customer experience and competitive differentiation. A secure, frictionless identity layer allows banks to offer personalised services, simplify onboarding, and retain customer loyalty.

“IAM is now a strategic asset... It’s about securing trust and delivering business outcomes.”

Adam noted that some financial institutions are even exploring the creation of a Chief Identity Officer role to bring cohesion to fragmented IAM responsibilities across IT, fraud, risk, and customer experience teams.

The Path Forward: Verified Trust at Scale

Ultimately, the message is clear: digital identity must be seen not just as a compliance requirement or fraud mitigation tool, but as the foundation of trust in the digital age.

Adam described Ping Identity’s vision of “Verified Trust” as the linchpin of future banking - a model where identity is verified continuously, mutual trust is established across all channels, and access decisions are contextual and dynamic.

“Verified trust is becoming an important linchpin of how business is done in the banking industry.”

To realise this vision, financial institutions will need to invest in modern, scalable, and flexible IAM infrastructure. One that works across consumers, employees, third parties, and machines, and that evolves as threats evolve.

Conclusion

As financial crime becomes more complex and fraudsters more agile, banks cannot afford to rely on outdated identity systems. They must embrace identity as a strategic priority - one that touches every part of the organisation, from compliance and cyber security to customer service and product innovation.

Digital identity is no longer a nice-to-have. It is a core weapon in the fight against fraud and financial crime and a vital enabler of trust in the financial services ecosystem.

(Join us at The Banking Scene Conference Brussels on May 22, where Adam will deliver a presentation on: “ Identity as the New Trust Currency: Securing Growth, Innovation, and Customer Trust in Banking” and you can meet the Ping Identity team at Booth 20 to dig deeper into the topic of digital identity with the experts.)