I've been reviewing some of the newer digital identity frameworks being proposed for financial services. The interoperability aspect is still the biggest hurdle. Are any of you seeing real-world adoption of self-sovereign identity (SSI) solutions by traditional institutions yet, or is it mostly talk?
I'm seeing a lot of pilot programs and whitepapers, but actual widespread adoption of SSI by major banks? Not so much yet. The regulatory environment is still a huge factor.
Honestly, I think 'self-sovereign' scares a lot of the big players. They like control. Maybe we'll see more adoption in smaller, more agile fintechs first before the behemoths jump in.
Interoperability really is the sticking point. Everyone wants to control their own stack. Until there's a truly open, secure, and widely accepted standard, it's going to be an uphill battle for SSI in traditional finance.
Our institution is definitely exploring it, particularly for KYC/AML efficiencies. The potential cost savings are massive if they can get the identity verification process streamlined and user-controlled. It's slow progress, but it's happening.