What is Customer Identity and Access Management (CIAM)?

When so much of your business takes place online, you’ll want to ensure your customers’ experience is as seamless as possible. Any friction in the process will result in incomplete transactions and lost business. Customer Identity and Access Management (CIAM) lets you build seamless customer journeys with minimal friction across multiple channels from any device or location while keeping your customers’ data safe and secure.

Throughout this article, we’ll explain what CIAM is, showcase its functionality, and highlight why it’s increasingly seen as an essential piece of kit in your online business arsenal.

Customer Identity and Access Management (CIAM) is a specialized branch of Identity and Access Management (IAM) that focuses on managing and securing the digital identities of customers and other users outside of an organization. CIAM solutions cater to the unique needs of businesses that provide services or products to a broad customer base, such as eCommerce websites, online services, and mobile applications.

While both CIAM and IAM deal with identity and access management, CIAM is customer-centric in its approach and specializes in managing the digital identities of external customers. On the other hand, IAM is a broader concept encompassing identity and access management for all types of users within an organization, including employees and partners. The choice between CIAM and IAM depends on your organization’s specific needs and the user groups it needs to manage and secure.

CIAM empowers organizations to securely collect and oversee customer identity and profile information while maintaining strict control over customer access to various applications and services. As such, CIAM solutions brings together a diverse range of functionality, including:

Friction-Free Customer Registration

Passwordless and Strong Authentication

Dynamic, Continual Risk-Based Authorization

Scalable Identity Store

Data Protection and Consent

Online Fraud Detection

Risk Management

Regulatory Compliance

Identity Orchestration

Design seamless end-user experiences by integrating with all your chosen identity vendors with no-code, drag-and-drop visual flows.

Customer Identity and Access Management (CIAM) is a specialized branch of Identity and Access Management (IAM) that focuses on managing and securing the digital identities of customers and other users outside of an organization. CIAM solutions cater to the unique needs of businesses that provide services or products to a broad customer base, such as eCommerce websites, online services, and mobile applications.

Research shows that nearly 60% of online consumers have abandoned an online service after becoming frustrated with the login procedure. This will not only be detrimental to the income your services generate. Creating a roadblock at the registration stage will also impact your organization’s understanding of their marketing spends effectiveness and efficiency. It may also add to your customer support costs with an increase in email, telephone, and social media support requests.

Enhanced customer privacy and data security are at the heart of CIAM solutions. Services, including Multi-factor Authentication (MFA), Adaptive Authentication, Identity Verification, and Integrated Fraud Prevention, help reassure your customers that they can confidently engage with your organization. As well as helping to increase conversions, CIAM will help your organization protect itself from the high cost of data breaches and potential fines in line with global privacy regulations, including GDPR.

Combining CIAM solutions with identity verification tools enables financial service institutions to effectively comply with Know Your Customer (KYC) regulations, which involve verifying the identity, risk assessment, and financial profiles of customers. In cases where individuals do not meet the minimum KYC requirements, banks have the authority to decline account opening or terminate existing business relationships. These client onboarding procedures play a vital role in detecting and preventing activities such as money laundering, terrorism financing, and other unlawful practices. Non-compliance with these regulations can result in substantial fines. According to The Financial Times, in 2022, credit and financial institutions incurred penalties of nearly $5 billion due to issues related to anti-money laundering (AML), sanctions breaches, and deficiencies in their KYC systems. This brought the cumulative total fines since the global financial crisis to nearly $55 billion.

CIAM solutions take your customer on a journey from discovery to the point of advocacy. A typical customer journey will include the following steps:

A streamlined registration procedure not only reduces abandonment rates and boosts conversions but also instils greater trust in users while reducing the risk of fraudulent accounts being created with stolen or synthetic identities. CIAM assists in this process by:

• Enabling effortless registration options, such as social registration.
• Furnishing tailor-made registration forms that mirror your brand’s identity flawlessly.
• Guaranteeing uniformity in registration across all applications.
• Introducing identity verification or data confirmation seamlessly when required within the registration experience.

Upon registration, customers may be required to authenticate their digital identities again to engage with your digital assets. If the process becomes arduous, they may opt to leave your brand and seek alternative services from your competitors.

CIAM offers the ability to provide a single sign-on (SSO) solution, granting customers effortless access to all applications, including those owned by partners or hosted in the cloud, through a single login screen and set of credentials. SSO, combined with social login options, allows your customers the added convenience of using credentials from providers like Google, Apple, and Meta for authentication. Simultaneously, a user-friendly multi-factor authentication (MFA) approach, using methods such as SMS, email, or push notifications from branded mobile apps, ensures the sign-on process remains simple and secure.

CIAM solutions offer the capacity to store diverse forms of customer data, encompassing custom attributes and unstructured JSON objects. This data finds its home in a unified customer profile, enabling any application to access information or preferences established in other applications, thereby tailoring the customer’s experience. Leveraging the capabilities of CIAM, your assorted digital assets can present valuable upsell prospects and provide personalized, omnichannel customer experiences.

Your organization will dramatically increase customer trust and loyalty by offering a seamless registration process, greater privacy and data security, and a highly personalized service. This approach will help your organization increase Customer Lifetime Value (CLV) and drive revenues.

There is no better marketing strategy for your organization than a happy customer who wants to share their experience with friends, family, colleagues and social media connections.

CIAM is used by organizations across a wide range of industries that interact with external customers or end-users. Here are just some examples of the type of organization that can benefit from CIAM:

• ECOMMERCE COMPANIES
  Online retailers and eCommerce platforms use CIAM to manage customer accounts, enable seamless shopping experiences, and ensure the security of customer data.
• MEDIA AND ENTERTAINMENT PROVIDERS
  Streaming services, content providers, and media companies employ CIAM to offer personalized content recommendations, manage subscriptions, and protect user accounts.
• FINANCIAL INSTITUTIONS
  Banks, insurance companies, and fintech companies can utilise CIAM to facilitate secure online banking, financial transactions, and account management for their customers.
• HEALTHCARE ORGANIZATIONS
  Healthcare providers and telemedicine services implement CIAM to handle patient authentication, appointment scheduling, and secure access to medical records.
• TRAVEL AND HOSPITALITY INDUSTRIES
  Airlines, hotels, and travel booking platforms use CIAM to enhance the booking experience, manage loyalty programs, and protect customer information.
• GAMING COMPANIES
  Online gaming companies use CIAM to manage user accounts, secure in-game transactions, and protect player identities.
• GOVERNMENT AGENCIES
  Government organizations implement CIAM to offer secure access to citizen services, tax portals, and government websites.
• EDUCATIONAL INSTITUTIONS
  Schools, colleges, and universities utilise CIAM for student and faculty access to course materials, enrolment systems, and online learning platforms.
• TELECOMMUNICATIONS COMPANIES
  Telecom providers use CIAM for customer self-service, account management, and secure access to billing information.
• MANUFACTURERS AND IOT PROVIDERS
  Manufacturers of Internet of Things (IoT) devices and industrial equipment may employ CIAM to manage user access to device settings and data.
• SOCIAL MEDIA AND ONLINE COMMUNITIES
  Social networking platforms and online communities implement CIAM to manage user profiles, privacy settings, and content access.
• SUBSCRIPTION SERVICES
  Subscription-based services such as software-as-a-service (SaaS) companies, premium content providers, and subscription box services use CIAM to manage subscriber accounts and billing.

Any organization that interacts with external customers, clients, or end-users and requires secure, seamless, and personalized digital experiences can benefit from implementing CIAM to manage customer identities, protect data, and enhance the overall user journey.

To learn more about how ProofID can help your organization create a seamless and more secure environment for its clients, improving user experience, reducing risk, and driving profits, contact us to speak with one of our CIAM experts.