fi-linx

OpenID is a relative new authentication framework what is being used by more and more websites across the internet.  It enables end users of web apps to maintain one identity instead of having a username and password associated with each and every website or service an individual uses.  Microsoft attempted to do this with their Passport service years ago that has recently morphed into the Live services.  OpenID however, is:

"…an open, decentralized, free framework for user-centric digital identity. OpenID takes advantage of already existing internet technology (URI, HTTP, SSL, Diffie-Hellman)…"

 Individuals can be issued an OpenID from many providers such as ClaimID, MyOpenID, or Verisign.  There is already an estimated 160M OpenID’s in use on the internet so chances are some credit union members already have them.

Does OpenID have a place in the banking system?  I could envision it being used to log into online banking for members, SSO functionality to enable seamless integration into other online vendors, like e-statement providers or credit card processors.  OpenID could also be used internally to provider other SSO to separate systems behind the firewall.  Each AD or LDAP user could automatically get an OpenID that would enable them to log into their banking platform, imaging platform, lending platform, intranets, etc.  That is of course if vendors supported it.  I’m sure there will be many people who will attack the open-source nature of OpenID and claim it will be not secure enough to support members logging into an online banking platform.  Phishing is a concern for this type of service, so could it be made secure enough, as it matures, to be usable by FI’s?