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Now the US jurisdiction lacks a widely accepted digital customer identification system.¹

The National Institute of Standards and Technology (NIST) of the US Department of Commerce has provided instructions regarding customer identification that are accepted as a digital identity standard.¹

The 2018 U.S. Treasury Department's Financial Technology Report determines two major elements of digital identity:

• verification of identity, registration and identity card;
• authentication ¹

A large number of fintech organizations can expand their customer base within a short time by utilizing a totally digital registration procedure for potential customers.¹

Fintech organizations should be provided with the next data before they start interacting with their clients with the goal of setting up an account:

1. First name, Last name
2. Date of birth (for individuals)
3. The address
4. Taxpayer identification number
5. The document in the government-approved format with a photo (for individual)
6. Government-issued document certifying the existence of a legal entity (for companies)
7. Use of comprehensive CDD programs
8. Use enhanced due diligence programs (for higher risk clients) ¹

At present, the US jurisdiction lacks a widely accepted digital identity system. The US Department of Commerce National Institute of Standards and Technology (NIST) has launched a series of technical regulations for implementing digital identity services. These instructions are binding for the national government and optional for the private actors. The NIST instructions are known as specifications that establish norms for the management of digital identity issues.¹

The Fintech Report defines digital legal identity as utilizing electronics for assertion and authentication of an individual's unique legal identity and underlines two important elements of the digital identity framework:

1. identity proofing, enrolment and credentialing
2. authentication ¹

Digital onboarding in the USA

Fintech in the USA

Fintech in other countries

Notes

1. https://thelawreviews.co.uk/title/the-financial-technology-law-review/usa