As we build a future of trusted, inclusive and secure identity ecosystems, what key considerations should companies keep in mind for secure B2B identity?
The B2B identity ecosystem, compared to B2C, is still equally fragmented across tools and methodologies, and there really has not been much innovation in the identifier itself. Businesses primarily rely on EIN and TIN, much like we as individuals rely on SSN. However, as we saw with SSNs, a single identifier like this is too readily accessible, creating a single point of failure.
As we look toward the future, we need to learn from advances in the B2C sector:
- We need to create and leverage an expanded set of signals to confirm a business’s viability because EIN|TIN, business name, or website is insufficient. Verifying a business in the context of what needs to be accessed or accomplished requires capturing and monitoring data—signals that are fit for purpose.
- Forming and participating in proven networks (or trust circles, as I call them). The benefits of being part of a network that minimizes data sharing, maximizes speed by removing duplication of verification, and promotes trusted business relationships by monitoring the businesses on the network (Versapay has five million) will prove to be priceless as fraud becomes more and more sophisticated and real-time payments become the norm. We’re seeing accounts receivable teams that can accept and efficiently process a wide range of digital payment options in addition to traditional payments, like paper checks, really benefit from our network, including 50% less time managing receivables, 30% fewer past due invoices and 25% faster payments.
Companies should be thinking deeply about what it means to enable an individual to be able to activate a funding instrument. In B2B, compared to B2C, more money is moved, and more people are impacted. Deep fakes are fake…but real. So, what person, position or title can make decisions is as, if not more, important in B2B. And, with voluntary employee turnover doubling in the last decade, keeping track of the specific person with an authorized position or title is critical. Businesses must work together to harmonize identifiers and reduce opportunities for fraudsters to intercept handoffs or take advantage of unsuspecting employees.
Do you have any unique predictions on the outlook of your industry?
First, while the rate of technological changes is democratizing how far and fast disrupters can move, trust is under attack and bigger, battle-test brands will usher in the next wave of innovation—maybe not themselves but through partnerships they forge and promote. Why? Because innovation today is based on winning strategies to leverage data, and even though big banks, for example, may not be experts at leveraging data—they have it. I am excited to see how unexpected partnerships unleash creativity in applying proven AI/ML and LLM to enable dynamic financial experiences.
Additionally, I never thought we’d be in a world where there would be one winner—fintech or traditional banks—I always thought it would be both. The recent case against Evolve is challenging the trust in fintech at a time when finding stability amidst so much volatility is critical. The office of the CFO will continue its rise from back office to front row as business leaders continue to navigate uncertain economic and geopolitical times. Being confident in your cash position will drive fundamental decisions around business longevity.
Lastly, I look back at piece I wrote in 2018 and stand behind predictions I made for B2C that will come true for B2B:
- Authentication becomes the payment: With greater scrutiny to ensure secure and trusted business operations, the need for robust verification and authentication to move money becomes paramount.
- Transactions become invisible: This has started with B2B software where you set it and forget it. However, payment rules that allow businesses to automate when and how they pay a verified supplier via a trusted channel will still require manual intervention by default.
- Rewards become orchestrated: For consumers, it is loyalty points, but for businesses, it will be payment terms, permission to pay later and incentive to pay earlier.