Stephane Mathieu, CEO, DICIO • Interview
By investing in a platform to ensure cybersecurity and encrypt information, DICIO is set to transform online transactions.
How do you intend to innovate identity security in Mexico and internationally?
Based on the regulation issued between 2017 and 2018, many companies and fintechs are trying to develop safer solutions for enrolment processes. However, there is currently little happening in terms of giving the end user control of their own information, or security from identity theft, which is a problem in Mexico. DICIO decided to offer a solution to enrolment processes that seem simple, but are highly regulated, and develop it as best we could. We are currently in the process of getting patented in the US and Europe; our strategy is to position ourselves first in respect to opening bank accounts, though our technology can be applied to any other context. Today, in Mexico even the federal government has not mastered the art of data protection. The problem with today’s token, digital, and cryptographic certificates is that once one stores the files on a device or system, the data is compromised. For example, the minute one stores a cryptographic key issued by Bitcoin on their cellphone, it is at risk of getting hacked. Even more so with non-encrypted personal information sitting in a bank or federal government database. We have invented a platform that encrypts the whole cycle,
including the communication channel one uses when signing up with a bank, along with the data, and the image of their face. For now, we are calling this a Crypto Face Key. This is a game changer because by turning a person’s image into a crypto key, it solves the problem of linking personal information with the physical person. The idea is to securely merge the real life of a person with their digital life to execute a transaction. We are linking their body to data and encrypting this data with a key that is generated from vectors and a formula based on one’s face. We use a computational neural network and data model to turn the vectors of one’s face into a pair of asymmetric keys.
What strategies is DICIO using to position itself in the market?
We started redesigning DICIO’s strategy and positioning for the Mexican and global markets in 2019. We spent seven or eight months building a brand-new business case because our previous one was too conceptual. If we could address the essentials of a person’s identity in Mexico’s challenging financial context, we could likely reproduce this anywhere in the world. The regulation in Mexico is probably the harshest and most taxing for banks and fintechs. We decided to expand our services portfolio specific to the Mexican banking market. In an emerging economy, you need to identify a person to have any type of commercial business or government institution relationship. We apply this to a simple cycle in the banking industry, namely the opening of a low-level bank account through a bank portal or app. This type of bank account is called an MPT2. In Mexico, such processes are regulated by two entities: National Banking and Securities Commission (CNBV) and Banco de México. Within the Salinas Group, we have presented this to the bank. We would link one’s face with their motorcycle data, such as the serial number and ownership papers. This has much more power than a paper invoice sitting in a drawer.
“Our strategy is to position ourselves first in respect to opening bank accounts, though our technology can be applied to any other context.”
What are your main goals for 2020, and what further projects would you like to collaborate on?
We are building the platform as we speak and hope to have a minimum viable product (MVP) by 1Q2020. This is meant to be an initial version with a Crypto Face Key, but we are not set to realize everything at once. When it comes to the Face Key each user will have a unique number. This is inspired by a project in India, where an institution uses a generated number that acts as a catchall for all other official numbers one has as a citizen. This is the same concept we have opted to employ. In Mexico today, we have too many official numbers that do not make much sense and cause security concerns. For example, the tax registry number (RFC) and national identification number (CURP) give away a great deal of personal information to third parties, such as one’s gender, place of birth, age, and initials. Most developed countries like Canada, the US, Japan, and New Zealand have a mask random number for their citizens for this reason. That number does not mean anything without additional data, but it is enough to identify you.
How much has been invested in developing this software in terms of time and money?
To build this, we are collaborating with an American machine learning and AI company established by a prestigious mathematician. The first phase of the project involves an investment of around USD1 million. We are working with the AI company to develop everything required at the backend. The formula is being turned into code using the Python programming language. And meanwhile, for the frontend we have a local team developing a cellphone app for Android and iOS. ✖