Building a Digital Identity Ecosystem that Works for Everyone

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In today's rapidly evolving digital landscape, identity verification has become a cornerstone of modern life. With over 500 million smartphone users predicted by Gartner to regularly use digital identity wallets by 2026, the way we verify who we are online is transforming how we interact with services across banking, e-commerce, entertainment, and government platforms.

Meet Penny Chai: VP of APAC at Sumsub

Penny Chai brings over 30 years of experience in the IT industry to her role as Vice President for APAC at Sumsub. Her career journey has taken her from hardware to software, and for the past seven years, she has specialised in RegTech. As a self-described data-driven leader, Penny makes decisions based on evidence rather than intuition, though she's not afraid to pursue unconventional strategies when the data supports them.

Penny is passionate about continuous learning and personal growth, embracing the concept of "reverse mentoring" to stay current with rapidly evolving technologies. Outside of work, she maintains balance through yoga and running along the Singapore River, using these activities to practice mindfulness and pursue personal bests.

The Current Digital Identity Landscape

The Asia Pacific region presents a fascinating study in digital identity adoption:

  • Leading adopters: Singapore, Malaysia, Hong Kong, and Australia have robust national digital identity systems
  • Emerging players: Thailand, Vietnam, and Indonesia are developing their own regulations and verification systems
  • Challenges: Despite progress, the landscape remains fragmented with varying levels of infrastructure maturity

Key Challenges in Digital Identity

  • Growing Sophistication of Fraud: Fraud techniques are becoming increasingly sophisticated. A recent case in Singapore saw fraudsters using deepfake technology to impersonate a senior executive, nearly resulting in a $500,000 loss for a multinational corporation.
  • Accessibility Concerns: While digital transformation offers efficiency, certain demographics—particularly the elderly—risk being excluded from these advancements.
  • Cross-Border Interoperability: With different countries developing their own infrastructure and regulations, interoperability becomes a significant challenge. This has prompted partnerships like Singapore collaborating with the UK and Australia, Hong Kong working with mainland China, and clusters forming within the European Union.

The Pain Points of Identity Verification

For both consumers and businesses, the current verification process presents several challenges outlined below.

For Consumers:

  • Repetitive data uploading
  • Inconsistent user experiences
  • Multiple verification processes across services

For Businesses:

  • Increased onboarding costs
  • Reduced customer acquisition rates
  • Potential damage to brand trust

Sumsub's Innovative Solution: Reusable Digital Identity

Under Penny's leadership in the APAC region, Sumsub processes millions of identity checks weekly, and their data shows that 1 in 3 applicants have previously verified with them. To address the recurring KYC requirements, they've developed the concept of reusable digital identity.

Key Benefits:

  • Eliminates repetitive verification: Once verified, your identity can be securely used across multiple services
  • Simplifies user experience: Reduces friction and saves time
  • Ensures security: Maintains a secure, verifiable identity that can be trusted across platforms
  • Cross-border compatibility: Can be used across countries and regions
  • Cost-effective: No extra cost after initial verification

Building Trust Without Friction

Sumsub's platform identifies over 14,000 identity document types covering more than 220 countries and territories. Their approach to building a trusted ecosystem includes:

  • User consent: Ensuring users maintain full control of their identity data
  • Interoperability: Creating systems that work seamlessly across platforms and jurisdictions
  • Regulatory compliance: Supporting KYC, AML, and privacy requirements across different jurisdictions
  • Data protection: Complying with data protection laws to prevent unauthorised access
  • Scalability: Handling large volumes of data without compromising performance or security
  • The Future of Digital Identity

Looking ahead, Penny envisions several exciting developments:

  • User-controlled identity: Control shifting from institutions to individuals
  • Decentralised systems: Less reliance on central databases, reducing vulnerability to hackers
  • AI-powered verification: Predictive models identifying high-risk behaviour and adapting verification flows in real time
  • Contextual identity use: Using different facets of identity depending on the service (e.g. healthcare vs. gaming platforms)

Penny's Leadership Philosophy

For product leaders and entrepreneurs entering this space, Penny advises focusing on "building trust without building friction." Her leadership approach emphasises:

  • Understanding yourself before leading others
  • Responding rather than reacting in challenging situations
  • Maintaining a learning disposition and embracing change

Staying authentic in all contexts Penny's calm approach to leadership—supported by data-driven decision-making—has helped her navigate the complex and rapidly evolving RegTech industry. As digital identity continues to evolve, solutions that balance security, compliance, and user experience will lead the way in creating a more connected yet secure digital world.

Guest:
Penny Chai, Vice President of APAC at Sumsub

Host:
Danny Levy, Managing Director, Money20/20 Asia, Founder of the Digital Transformation & Leadership Podcast

Producer:
Danny Levy, Managing Director, Money20/20 Asia, Founder of the Digital Transformation & Leadership Podcast