Ed tech companies serve a wide variety of stakeholders, and identity unites them all. A clunky, one-size-fits-all login experience will undoubtedly cost ed tech companies customers in an increasingly competitive landscape. The ed tech market is projected to reach $213 billion globally this year, and $437 billion by 2033. More and more, winning and keeping customers comes down to one (sometimes underappreciated) layer of the product: identity. 

A market straddling the past and the future

Ed tech platforms serve some combination of students, parents, university admissions teams, financial aid and/or loan partners, and legacy nonprofit or institutional partners. Importantly, each of these stakeholders have very different expectations when it comes to security, friction, and technology readiness.

For example, AI-native students are experimenting with agents and chatbots. They’re using AI assistants to research, compare universities, and navigate admissions; forgoing traditional search altogether in many cases. They have little-to-no tolerance for friction, so platforms that don’t meet their needs will quickly be replaced in favor of ones that do. Conversely, partners and institutional admins tend to be less tech-forward. They may still rely on legacy enterprise protocols like security assertion markup language (SAML) and lightweight directory access protocol (LDAP).

This creates a sort of identity paradox. Ed tech companies need to have one foot in “the past” to support the legacy, enterprise-grade protocols their institutional partners require. But they also must have one foot in the future with passwordless authentication and AI-ready infrastructure, like OAuth-compliant APIs and MCP servers, so AI-native students can engage with their products on their own terms.

Creating a smooth, cohesive identity experience isn’t a nice-to-have. It’s become a crucial part of every ed techs’ growth strategy. But what does that actually look like?

Here are six core practices and features to enable a frictionless identity experience that’s both secure and ready for the AI era:‍

Lower the “barrier to entry” with passwordless authentication

Passwordless authentication methods, like passkeys and magic links, should be the default wherever possible. As mentioned, students have little patience for authentication barriers and their UX expectations are sky-high. Passwordless authentication supports a better identity experience and eliminates poor security practices like password reuse. 

But flexibility matters here, too. Students might prefer to authenticate via SMS, WhatsApp, or social login, while institutional partners may be more accustomed to email-based authentication and prefer getting a one-time password (OTP) in their inbox. A platform that supports multiple methods is key for meeting users where they are.

Implement progressive profiling 

Progressive profiling, i.e., collecting only the minimum amount of information required to create an account, is crucial for easy onboarding. Once again, students in particular are seeking an ultra-streamlined identity experience. So if a student lending platform, for example, asks for financial details during the initial account creation process, it creates an immediate barrier that can lead to drop-off. Instead of frontloading information collection, only ask for what’s absolutely necessary at any given time. 

Match authentication strength to risk

Multi-factor authentication (MFA) is a core tenet of identity, but it shouldn’t be required in every instance. Adaptive MFA reserves extra verification only for specific, warranted situations like logins from a new device or long gaps between sessions. Step-up authentication keeps security strong without inconveniencing users at every login (e.g. only asking for an extra auth factor when a student is completing a loan application).  

Unify identity across every surface

Students, partners, and admins are increasingly interacting with vendors across web apps, mobile apps, partner portals, and AI interfaces. All of these touchpoints should recognize a single user identity rather than forcing users to create duplicate accounts. In addition to tarnishing UX, fragmented identities encourage poor security practices and burden engineering teams, who then must reconcile redundant records on the backend.

Support hierarchical, proxy-based access

Some ed tech use cases involve family units, not just individuals. For example, a parent might need to manage a loan application on their child’s behalf. Cases like this require access-by-proxy and fine-grained permissions so parents can complete specific actions without inheriting the student's full account access.

‍Have a remote, production-ready MCP server with identity built in

Students are already using ChatGPT, Claude, and other AI assistants. Having an OAuth-compliant MCP server lets them log in and interact with products securely from within an LLM interface. This is quickly becoming table stakes for any ed tech company that wants a presence on AI platform marketplaces. In the agentic era, ed techs simply can’t afford for identity to become a barrier to AI access.

Ed techs are under more pressure than ever to serve their stakeholders in a landscape that’s hyper-competitive and rapidly being transformed by AI. Balancing security, UX, and AI-readiness is a top priority, especially when it comes to winning over tomorrow’s students. Ed techs that treat identity as the growth lever it is (not just a checkbox) will stand out in this crowded market and set themselves up for sustained growth.

‍