The Evolution of Technology and the Case for Strategic Friction

In the iconic movie Alien, the crew of the Nostromo navigated their spaceship with clunky buttons, dials, and switches. Today, that retro-futuristic design might seem outdated, especially as touchscreens and smooth surfaces dominate modern sci-fi. But as we gaze into the future, an important question arises: are touchscreens truly safer than physical controls? For cars, at least, the answer might be no. European car manufacturers are being pushed to reinstate physical buttons for basic functions due to growing concerns over touchscreen distractions and their impact on road safety. This shift reflects a broader debate about the role of "good friction" in technology—deliberate barriers that enhance safety and decision-making, even if they add a little inconvenience.

The Rise of Good Friction

The European New Car Assessment Programme (NCAP), a trusted authority on automotive safety, plans to introduce new rules in 2024 requiring physical controls for essential functions to earn a full five-star safety rating. While drivers might initially resist reverting to analogue controls, the idea isn’t as far-fetched as it seems. In 2020, the U.S. Navy replaced touchscreen controls on its destroyers with traditional knobs and dials after a fatal collision linked to overreliance on touch interfaces. These examples highlight that sometimes, a bit of friction—intentional resistance or delay—can be a lifesaver. In fintech, strong authentication processes like two-factor authentication (2FA) are a prime example of good friction. They slow things down just enough to protect users from fraud, offering a sense of security that outweighs the minor inconvenience.

The Pitfalls of Bad Friction

Not all friction is created equal. While good friction serves a strategic purpose, bad friction stems from outdated systems, poor design, or a lack of innovation. This kind of friction frustrates users, slows down processes, and can drive customers away altogether. Think of clunky legacy systems that force users to jump through hoops for simple tasks, or poorly designed customer service interfaces that leave people hanging. Bad friction doesn’t make anyone safer or more secure—it just makes life harder. To strike the right balance, businesses must carefully design systems that eliminate unnecessary barriers while preserving the ones that matter.

Rethinking Digital Identity

Dr. Elisabeth Carter, a criminologist at Kingston University, argues that we need a "conceptual change" in how we view friction online. Instead of striving for a seamless, frictionless experience, we should see friction as a safeguard—like a seatbelt for the internet. This shift in mindset is crucial as we move toward new forms of digital identity that are native to the online world. Current identity systems are often based on outdated analogue models, and it’s time for a rethink. Imagine logging into a website not with "Log in with Google" or "Log in with Apple," but with a secure, regulated digital identity tied to accountability and trust. Whether this comes from governments, banks, or tech companies, the priority should be clear: we need a universal "internet seatbelt" to protect users and their data.

Beyond Fintech: Safety for Society

The stakes go far beyond banking or social media. Digital identity should be seen as a national priority, a key defense in the ongoing cyberwar that shows no signs of ending. General Sir Nick Carter, Britain’s Chief of the Defence Staff, has warned that the UK is "at war every day" due to relentless cyberattacks. This is no exaggeration. As Marshall McLuhan predicted decades ago, modern conflict is a guerrilla information war with no clear line between military and civilian roles. A robust digital identity system isn’t just about stopping fraud or making logins easier—it’s about protecting democracy, institutions, and society itself. AI further complicates this landscape, as bots and hostile powers blur the lines of traditional warfare. The time to act is now.

The Future of Digital Identity

Fixing identity isn’t just a fintech challenge—it’s a national and global imperative. The concept of friction needs to evolve from something we tolerate to something we actively seek. Just as we don’t think twice about buckling a seatbelt, future generations should see digital safeguards as second nature. Regulators must step in to demand standardized, regulated digital identities that offer security, accountability, and trust. The provider of these identities—whether governments, banks, or tech giants—may vary, but the urgency is universal. In a world where cyberwarfare has no end in sight, building a secure digital infrastructure is no longer optional—it’s essential.