Sprint Program


A tech sprint program brings a diverse set of stakeholders (e.g., non-profits, private sector individuals/companies, and academics) together in collaborative settings for a short period of time to intensely focus on creating solutions to challenges of importance to the organization hosting the tech sprint. A ‘sprint’ simply refers to a short period (typically 2-3 weeks) where teams turn ideas into value. The hosting organization will provide the problem statement and selected teams will devote their collective energy and expertise towards addressing specific challenges. A tech sprint will culminate with a Demonstration Day where each team shares findings with a panel of evaluating experts.

Measuring the Effectiveness of Digital Identity Proofing for Digital Financial Services


Remotely-delivered financial services, a phenomenon already growing but accelerated by the pandemic, depend on digital technology for successful execution. Digital technology also plays a core role in the compliance aspects of remotely-delivered financial services, from client onboarding and identification, to customer due diligence and anti-money laundering responsibilities, to risk management. Cost effective and efficient technology solutions ensure these financial services are broadly available and affordable, particularly for resource-constrained firms like community banks.

Digital identity proofing is a foundational element to enable digital financial services to function properly. This element is challenged by the proliferation of compromised personally identifiable information (PII), the increasing use of synthetic identities, and the presence of multiple, varied approaches to identity proofing. Simultaneously, technological developments are enabling dynamic identity evidence such as state mobile driver’s licenses (mDLs) or other identity credentials that are frequently updatable and interoperable, as well as behavioral analytics. The FDIC and FinCEN seek solutions to measure the effectiveness of digital identity proofing for greater reliance in assessment and calibration of risks, by having Tech Sprint participants answer the question:

What is a scalable, cost-efficient, risk-based solution to measure the effectiveness of digital identity proofing to ensure that individuals who remotely (i.e., not in person) present themselves for financial activities are who they claim to be?

Ideally, the solutions developed from this Tech Sprint will inform future FDIC, FinCEN, and industry-led efforts, plans, and programs to increase efficiency and account security; reduce fraud and other forms of identity-related financial crime, money laundering, and terrorist financing; and foster customer confidence in the digital banking environment.

Considerations

There is no “one size fits all” approach to this problem. Innovations developed for this Tech Sprint could encompass a range of outcomes such as:

  • developing a scoring model for digital identity proofing sources and processes;
  • findings and research-backed observations on how to enhance assessing existing solutions;
  • applications of artificial intelligence/machine learning programs to identify and “red flag” questionable identities leading to dynamic scoring; or
  • creating other technical solutions that help answer the question posed by the problem statement.

Participants may focus on any aspect of the problem statement, and as that focus is developed, the FDIC and FinCEN encourages consideration of the following questions:

  • Does the solution include new or unique data, processes, or technologies that could enhance assurance of the legitimacy of digital identity evidence, including new forms of authoritative source identifiers when onboarding new customers in a remote banking environment?
  • Does the solution consider new forms of digital identifiers from authoritative sources, such as state motor vehicle administrations or the Social Security Administration? Is the solution interoperable or compatible with the multitude of platforms used by financial services firms, particularly community banks?
  • Does the solution consider applicability to identity proofing that may apply to a multitude of financial products, including legacy financial products and evolving digital assets?
  • How might community banks, the largest financial institutions, and third-party service providers partner to collectively determine and test the solution?
  • How might the solution improve the risk and compliance process or align identity confidence with a risk profile?
  • What would a technical implementation of the solution look like, and how might it be implemented sector-wide? What role should government play in such an implementation, if any?
  • Is the solution cost-effective and scalable to any size financial institution, including community banks, does it create value for other business applications, and can it be easily implemented and understood by non-technical staff?

How to Participate

Registration will be required and will be available on this webpage by the end of January 2022 for all participants.

Individuals who are interested in participating should submit a registration form. The Tech Sprint will encompass a review of submissions, grouping of individuals into teams that will work together over approximately three weeks to develop solutions to this challenge question, and invitations to participate in a “Demo Day” of short team presentations to a panel of experts for evaluation.

At the conclusion of the Tech Sprint, the FDIC will publish all team presentations and recognize teams based on several criteria detailed in the forthcoming prize notice. Neither the FDIC nor FinCEN are offering monetary prizes associated with the Tech Sprint.

A tentative timeline for the Measuring the Effectiveness of Digital Identity Proofing for Digital Financial Services Tech Sprint follows (dates are subject to change); please check back frequently as more information becomes available:

End of January 2022: Registration opens.

Mid-February 2022: Registration closes.

End of February 2022: FDIC and FinCEN review registration applications and invite a select number of individuals to participate in the Tech Sprint. FDIC and FinCEN will form teams from individuals selected to participate that will work together on their proposed solution for a period of approximately three weeks.

Mid-March 2022: Selected teams come together for a Demonstration Day with a panel of expert judges.

Additional questions about this Tech Sprint can be sent to innovation@FDIC.gov