Glossary Customer Identity and Access Management

Customer Identity and Access Management

Customer Identity & Access Management (CIAM)

As online fraud increases, the importance of customer identity and access management (CIAM) grows. CIAM enables companies to protect themselves against compliance violations and safeguard customer data. At the same time, CIAM solutions allow detailed customer profiles to be created for assessing the risk of login attempts and personalising the online experience.

What is CIAM?

Customer Identity and Access Management (CIAM) is a vital technology for companies that offer digital services. CIAM solutions control access to digital applications or services for customers and users. This allows companies to securely capture and manage customer identity and profile data.

There are several reasons why the implementation of CIAM is relevant for companies: it increases security by protecting customer access to digital applications and preventing fraud. At the same time, it improves user-friendliness by simplifying processes such as logging in, registering and verifying.

CIAM covers the following areas:

• Identity verification
• Fraud prevention
• Access management
• Authorisation and authentication
• Registration
• Privacy and preference management

CIAM can be implemented on a company's servers, in a private cloud or as an Identity as a Service (IDaaS) solution. With the IDaaS variant, the solution is hosted by a third-party provider in the cloud, i.e. in a traditional Software as a Service (SaaS) model. Functions are provided via application programming interfaces (APIs), which enable communication between different applications.

Traditional or highly regulated companies in particular still manage customer identity and access on-premises, i.e. on their own systems with physical servers. However, the SaaS variant has also become the gold standard for most CIAM use cases.

Why is customer identity and access management important?

The importance of CIAM is growing steadily. This is not only because companies are increasingly relying on digital services, but also because online fraud is on the rise. A modern CIAM system enables customers to log in securely and conveniently.

It contributes to a positive experience right from the digital onboarding stage by enabling straightforward, consistent registration processes. Features such as social login and single sign-on (SSO) simplify access and significantly reduce the abandonment rate.

Security is just as important as user-friendliness. In 2024, Switzerland recorded 59,034 digital crimes, including a sharp increase in identity theft and misuse – a rise of 104.8% (FSO/Swiss Crime Statistics 2024). According to police crime statistics, Germany recorded a total of 131,391 cybercrime cases and 743,472 cases of fraud in 2024. Likewise, 10,616 cases of 'falsification of evidence' (§ 269 StGB) were recorded. (BKA/PKS 2024).

Such incidents can have legal and financial consequences for companies, as well as undermining customer confidence. Data protection violations often result in substantial fines under legislation such as the GDPR in the EU and the DSG in Switzerland, causing considerable reputational damage. CIAM is therefore much more than just a technical solution; it should form a central part of governance and IT compliance.

Core functions of CIAM systems

Customer identity and access management (CIAM) focuses on creating a secure and user-friendly customer journey. As well as authentication and authorisation, it primarily involves identity management:

Authentification

Flexible login options simplify authentication, and the required security level should depend on the product or service. Measures such as adaptive authentication increase security by only approving customer requests or logins if they are consistent with the customer's usual behaviour. This significantly reduces the risk posed by fraudsters.

Authorisation

CIAM regulates customer access rights, ensuring that users can only access the information and functions they are authorised to use. The reasons for any access restrictions are presented transparently to customers.

User- and Identitymanagement

CIAM solutions manage the digital identities of customers or users across all identity lifecycle processes (registration, verification, deregistration, etc.).

CIAM use cases in practice

Contemporary customer identity and access management (CIAM) is relevant across all industries, wherever secure, user-friendly and compliant access to digital services is required. The following examples demonstrate how companies in various sectors are implementing CIAM solutions.

E-Commerce & Retail

• Simplified login through single sign-on = fewer abandonments in the checkout process.
• Protection against fraudulent orders through risk-based authentication.
• Personalised offers based on linked customer profiles.

Banking & financial services provider

• Secure digital identity verification as part of KYC processes.
• Multi-factor authentication prevents account takeover and phishing.
• Seamless access to mobile banking apps and customer portals.
  

Insurance

• Fast digital onboarding of new customers with Auto-Ident.
• Transparent management of customer data and consents in accordance with DSG/GDPR.
• Login for self-service portals for address changes, contract management, etc.

Gaming & Streaming

• Ensuring the protection of minors through integrated age verification.
• Passwordless logins and social logins for a smooth user experience.
• Protection against multiple accounts and fraud (e.g. smurfing).

How can PXL Vision help with customer identity and access management?

Digital identity verification is an essential part of managing customer identities and access, and it plays a central role in protecting sensitive data. It prevents fraudsters from accessing systems using fake identities. In regulated industries such as finance, identity verification is subject to legal requirements, such as the 'Know Your Customer' principle. 

PXL Vision's Auto-Ident process offers a fast and reliable identity verification solution as part of CIAM. Thanks to the automated comparison of biometric data with an ID document, customers' identities are securely verified in less than 30 seconds. This ensures smooth registration and login processes and significantly reduces abandonment rates.

PXL Vision enables companies to strengthen their security measures effectively while ensuring a smooth, customer-centric onboarding process. This fosters greater security and trust in every customer interaction.

Interested in our CIAM solutions? Contact us to find out more.