Identity that fits today, and tomorrow: Right-sizing for financial services

Identity programs in financial services often face challenges not due to a lack of understanding of protocols like OAuth, OIDC, or MFA, but because identity decisions made under current constraints can become hindrances as organizations evolve. Initially, the focus is on implementing secure sign-in, reducing operational burdens, and meeting baseline requirements without building custom solutions. However, as institutions grow and accelerate their time-to-market, the initial identity approach can turn into a patchwork of workarounds and poor user experiences. The key challenge is choosing an identity approach that aligns with the institution's current operating reality while allowing for future growth without requiring a complete overhaul of integrations. Different financial institutions, such as credit unions, banks, insurers, and fintechs, operate under varied regulatory pressures and customer expectations, necessitating tailored identity solutions. The choice between managed identity solutions and self-hosting depends on factors like operational burden, customization needs, scale, and data residency requirements. Managed identity is suitable for smaller teams seeking simplicity and flexibility, while self-hosted solutions offer maximum control and accountability for larger institutions with robust platform teams. Institutions must consider their capacity to operate identity systems, the need for customization, scale challenges, and data residency requirements when selecting an identity operating model. Ultimately, the goal is to choose a model that suits the institution's current and future needs, ensuring a seamless progression path. Ory offers both managed and self-hosted identity solutions, providing flexibility, customization, and control to meet diverse business needs.