A recent survey reveals that a significant majority of organizations are grappling with issues related to customer identity and access management (CIAM). Conducted by Descope, a leading external IAM platform provider, the study highlights ongoing struggles with outdated authentication methods, overburdened developers, and the impact of patchwork solutions on business performance.

Organizations Struggling with Outdated Authentication Systems

The survey of 416 decision-makers shows that while 87% rely on password-based authentication for customer-facing apps, only 2% believe this method effectively balances security and user experience. Many organizations are hindered by legacy systems and lack the resources to upgrade to more secure and user-friendly solutions.

Furthermore, 51% of organizations utilize their existing workforce IAM systems to implement customer authentication, but only 8% would choose the same approach if starting from scratch. These makeshift solutions are often costly and impact business operations.

The Impact on Business and Security

Results indicate that 82% of respondents have experienced some form of negative business impact due to their current CIAM practices. Common issues include high costs associated with support tickets (52%), delays in product launches (37%), and user dropoffs caused by complicated onboarding processes (30%).

Overstretched developers are a key factor, with 51% managing CIAM projects without sufficient experience, and only 28% having dedicated CIAM engineers. Many organizations (46%) report delaying identity-related initiatives due to competing priorities.

The use of open-source CIAM solutions, while initially cost-effective, also presents challenges. About 50% of organizations using open-source tools faced revenue losses or user dropoffs due to strict authentication, and 51% experienced security incidents, compared to 39% using commercial solutions.

Overall, the study underscores the urgent need for organizations to modernize their customer identity management systems to improve security, reduce costs, and enhance user experience.

Inspired by

• https://ai-techpark.com/82-of-businesses-hit-by-customer-identity-issues-says-descope/