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Customer Identity & Access Management: why are they key for digital business?

Date of issue

4. 3. 2025

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Customer Identity & Access Management: why are they key for digital business?

How can you ensure customer safety while offering them seamless access to your services?

This is a question that companies of all sizes ask themselves. The traditional username and password option is no longer enough – customers expect simplicity, while businesses need maximum security. That’s where Customer Identity & Access Management (CIAM) comes in – a solution that protects user identity while ensuring seamless access to digital services.

What is CIAM and why do companies need it?

CIAM is an area of identity and access management that focuses on customers and external users of the company. Unlike Identity & Access Management (IAM), which focuses on internal employees, CIAM enables companies to securely authenticate, authorize and manage customer accounts.

Businesses that rely on a robust CIAM solution such as Okta Customer Identity Cloud (Auth0) gain several benefits:

  • Improved user experience – quick and easy registration and login (e.g. via social networks or biometric authentication).
  • Stronger security – eliminate weak passwords with multi-factor authentication (MFA) and advanced anomaly detection.
  • Improved conversion and customer loyalty – smooth onboarding and access to services without glitches
  • Ensuring compliance with regulations (GDPR, CCPA, NIS2) – proper identity management minimizes legal risks and fines.

How does CIAM improve safety and customer experience?

Let’s take a look at the key technologies that modern CIAM platforms use.

1. Single Sign-On (SSO)

Instead of customers having to register separately for each application or service, SSO allows them to log in with one account to multiple systems at once. This not only increases convenience, but also reduces the risk of attacks associated with reusing passwords.

2. Multi-Factor Authentication (MFA)

Weak passwords are still one of the most common security problems. MFA adds an extra layer of protection, for example by:

  • Biometric authentication (fingerprints, Face ID),
  • Push notifications in the mobile app,
  • Temporary one-time codes (OTP) via SMS or email.

This means that even if an attacker has obtained the customer’s password, they will not be able to access the account without the additional factor.

3. Adaptive Authentication and Fraud Detection

Not all authentications are created equal. If a user is logging in from a known device and location, CIAM will allow access quickly. But if he tries to log in from a suspicious location or unusual device, the system may require additional authentication or block access.

4. Integration with social networks and password-free login

The fewer obstacles customers have to overcome, the more likely they are to complete a registration or purchase. The ability to log in with Google, Facebook or Apple ID saves time and eliminates the need to remember additional passwords. Another innovation is passwordless authentication, which allows access via email links, biometrics or special authentication apps.

A practical example: How can CIAM improve business?

Imagine an e-commerce platform that sells electronics. Without CIAM, customers would have to create separate accounts for each country where the company operates, which would deter many users. With the deployment of the Okta Customer Identity Cloud (Auth0):

✅ Easy sign-in – customers can sign in with their Google or Apple ID.

✅ Security measures – suspicious access attempts are automatically blocked.

✅ Increased conversion – less complications during registration means more completed purchases.

Why is CIAM essential for digital business?

Customer Identity & Access Management is not just about security, it’s about improving the user experience and supporting business growth. In today’s world, striking a balance between data protection and ease of access is key – and modern CIAM platforms like Okta Customer Identity Cloud (Auth0) provide that balance.

➡ Does your company have the right customer identity management? Maybe now is the right time to upgrade!

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