> ## Documentation Index
> Fetch the complete documentation index at: https://wiki.jamesvarga.com/llms.txt
> Use this file to discover all available pages before exploring further.

# The perfect storm for identity

> How PSD2, Open Banking, and GDPR converged to reshape online identity and trust — and how DirectID positioned for that shift.

## What this piece is

A founder's reflection on the regulatory convergence that reshaped the identity and open banking landscape. PSD2 opened access to bank data. GDPR gave consumers control over their personal information. Together they created a "perfect storm" that made bank-verified identity a viable and valuable product category.

Originally published on [Medium](https://medium.com/@jamesvarga/the-perfect-storm-for-identity-35d9b8012b6a), February 2021. Originally written circa 2017.

## What is the core idea?

Two regulatory forces — PSD2 and Open Banking mandating third-party access to bank data, and GDPR giving consumers data rights — converged to create commercial opportunity for identity products built on bank data. DirectID pivoted from a consumer product (miiCard) to a B2B service leveraging bank data for identity verification, reducing onboarding time, reducing fraud, and enabling same-day decisions for lenders.

## Related pages

* [Open banking and identity](/knowledge/open-banking/index) — consent and trust infrastructure
* [Is AI the 'new oil'?](/content/papers/is-ai-the-new-oil) — the identity phase of the "new oil" evolution
* [ID2020 Summit](/content/thoughts/id2020-summit) — global identity and self-sovereign identity
* [Dealing with the new norm](/content/thoughts/dealing-new-norm) — COVID-era acceleration of digital identity
* [Lessons from a Fintech](/projects/lessons-from-a-fintech) — the DirectID story
* [Thoughts](/content/thoughts/index)
* [Identity and trust infrastructure in open banking](/knowledge/open-banking/identity-and-trust) — identity and trust deep dive
* [Consent and risk in open banking](/knowledge/open-banking/consent-and-risk) — consent lifecycle

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