Automakers seem to be holding all the right cards that would clear the way to becoming one of the few major identity stewards consumers collectively trust, writes Louie Abonador
CES 2024 was packed with innovative tech as automakers showed off the latest in-car platforms and advancements. At the centre of new experiences is a deeper understanding of the customer and their digital lives. These advancements are happening as the digital identity management landscape is undergoing a major shift. In this case, digital identity management refers to the process of representing a consumer’s identity to a subscription-based service for verification and access purposes. With the average consumer juggling as many as 100 passwords, efforts are being taken to move away from passwords to easier, more secure authentication measures.
Today, big tech companies like Google and Facebook offer some respite by allowing their credentials to be used for access to digital services. Now, automakers also stand to become key digital identity players, enriching consumer lives in ways that will ultimately extend beyond the car. They are uniquely positioned to do so based on several key factors.
Digital identity management refers to the process of representing a consumer’s identity to a subscription-based service for verification and access purposes
One of the big ones is the ability to verify customers and establish billing relationships through leasing and financing agreements. They can also operate frequently accessed, dedicated mobile applications with biometric security features. In general, automakers enjoy a high level of credibility and trust among a loyal customer base—another factor in their favour. And finally, once in the vehicle, consumers represent an exclusive audience for a range of services.
Each factor is important but having a captive and frequently recurring audience especially creates urgency and a near-term opportunity. As large digital dashboards continue to enter the vehicle, more subscription services become available and mobile networks become more capable of handling high-quality streaming media. They are creating new opportunities for premium, in-vehicle consumer experiences.
To date, consumers have been satiated with functionality like Apple’s CarPlay and Google’s Android Auto, which offer plug-and-play access to internet connectivity, maps and music apps on vehicle dashboards. However, these free offerings have largely been about learning how drivers and passengers interact with apps in an automotive environment. Automakers have begun taking the next step of taking this knowledge and integrating smart functionality directly into the car’s official OS. At CES, Mercedes-Benz touted its new integrated MBUX virtual assistant and native integration of a range of third-party apps, such as Booking.com, Zoom, Microsoft Teams, Antstream Arcade and many more.
Efforts like these aim to eliminate the need for plug-and-play smartphone capability. Instead, automakers could start establishing stronger partnerships with wireless operators to sell the car as an additional 5G line with all app interaction originating in the car versus a phone.
When it comes to the vehicle, the traditional method of entering passwords to access apps and information is not only impractical but also raises safety concerns. As they take increasing ownership over the digital experience, automakers are exploring the implementation of passkeys, a technology that uses cryptographic identifiers for secure access, eliminating the need for passwords. This approach enables seamless and secure access to services, leveraging methods already familiar to users, such as fingerprint sensors, face recognition, and wearable device confirmations.
This will elevate automaker’s role as stewards of an integrated digital experience with adoption by consumers inevitable. Ultimately, automakers will find themselves in a more strategic position, not only in terms of vehicle functionality but also in expanding digital identity management roles.
The shift represents a new era where automakers are not just vehicle manufacturers but also key facilitators of a secure and streamlined digital experience. This evolution marks a significant step in the broader narrative of digital identity management, with automakers at the forefront of innovation and customer experience enhancement.
The opinions expressed here are those of the author and do not necessarily reflect the positions of Automotive World Ltd.
Louie Abonador is Senior Director at Synacor’s Cloud ID group
The AutomotiveWorld.com Comment column is open to automotive industry decision makers and influencers. If you would like to contribute a Comment article, please contact editorial@automotiveworld.com