Companies Focus on Blockchain, Analytics, and AI in New Partnership
Distilled Analytics and Shyft Network announced on Sept. 19 that they would be joining to create next-generation biometric identity solutions in order to fight the growing international crises of identity fraud, theft, and verification. They will address these issues using the blockchain, analytics, and AI.
The announcement comes on the heels of the first Blockchain Policy Forum hosted by the Organization for Economic Cooperation and Development.
Shyft Network is working to create the first blockchain-based digital identity ecosystem enabling KYC (know-your-customer) and AML (anti-money laundering) verified data transfers. Distilled Analytics is a global leader in predictive identity efforts.
“We are experiencing a global identity crisis of epic proportions,” Distilled Analytics CEO David Shrier said in a press release. “The costs associated with managing identity and compliance in financial services alone are spiraling up despite a multi-decade effort to address the problem. New solutions, based on advanced data science techniques and machine learning innovations, are needed to not only stem the tide, but tackle the issue at the root cause. Our unique partnership with Shyft Network will help to finally deliver a reprieve from these bad actors while simultaneously creating the opportunity for greater digital and financial inclusion.”
Identity Verification Is a Significant Problem Around the Globe
The World Bank says that at least 1 billion people globally do not possess a legal identity, leaving a large opening for human traffickers, as well as those committing identity theft and fraud. The United Nations promulgated a Sustainable Development Goal with the aim of ensuring everyone in the world possesses a verifiable legal identity.
In the meantime, identity verification issues, like theft and fraud, fuel the crises experienced throughout the financial sector. The cost of verifying customer identities in the banking sector is at least a quarter of a trillion dollars each year with an annual growth rate of five percent.
“Enterprise data needs are quickly evolving, and companies are seeking innovative solutions that can tackle the arising challenges around rapid data growth, data security threats, and reliable recovery systems,” Joseph Weinberg, chairman of Shyft, said in a press release. “By leveraging a distributed network and storing a pool of attestations on the blockchain, Shyft Network can provide Distilled Analytics with the highest level of personal data protection.”
In July 2018, Distilled Analytics launched its IDENTITY predictive identity paradigm in conjunction with Shyft’s blockchain-based identity network. The joint effort will enable governments as well as financial and other institutions to apply the latest technologies more effectively as solutions to worldwide identity issues.
Shyft also announced that it will make an equity investment in Distilled Analytics since the company offers a broader scope of diversity to Shyft’s ecosystem. The exact nature of the investment was not disclosed.
Distilled Analytics’ IDENTITY was based on AI analytics research done by the University of Oxford, MIT, and Imperial College London. The research used biometrics alongside predictive identity analytics to ensure the veracity of customer identities. Preliminary studies show it may be possible to improve upon current biometrics by at least two times, improving security and simplicity for customers.