The digital revolution is in full swing. Smart devices, biometric data, and digital ID technologies are driving unprecedented economic growth, creating a more equitable and inclusive society than ever before. With technology advancements that are producing incredible results, it is clear that the digital revolution is here to stay and will open up new opportunities for everyone.
By leveraging the power of modern technology, businesses are able to create more opportunities for those who have been traditionally underserved. This shift will eventually enable more people to reap the rewards of economic growth, creating a brighter future for all.
“New research by the McKinsey Global Institute “shows how good digital ID is a new frontier in value creation for individuals and institutions around the world.”
The potential for digital ID to revolutionize how we interact with the world around us is nothing short of incredible. From financial services to healthcare to education, digital ID has the potential to open up a world of opportunity.
Development of Technologies to Protect the Security and Privacy of Citizens on a Global Scale
According to estimates from the World Bank’s ID4D database almost one billion people around the world live without any legal recognition of their identity. Another 3.4 billion people have some form of legal recognition, but their ID is not equipped to help them participate in the digital world. And the remaining 3.2 billion people have a valid identity but may not be able to use it effectively in the digital economy.
Digital identity holds the potential to bridge this gap and make an enormous difference in the lives of these individuals. It could mean increased access to goods and services, more efficient fraud prevention and protection of rights, and a simpler way to take part in the digital economy. It could further open up new opportunities and freedoms for billions of people who have been largely excluded from the modern world.
However, only recently have we seen the development of technologies to protect the security and privacy of citizens on a global scale. The adoption of secure digital ID is becoming more widespread; though the speed of adoption varies significantly between countries due to social and political issues, as Steve Warne, senior director of product marketing at HID, explains.
The potential applications for a secure digital identity are vast, ranging from tax returns to banking, passports to voting, and many other areas where citizens must prove their identity to the government. This technology could have a huge and far-reaching impact on social and economic development – but, unfortunately, many people still don’t trust it and don’t want to feel as if they’re being tracked.
Exhibit 1
New Technology, such as Blockchain, is Facilitating the Rapid Growth of Digital ID
The digital infrastructure that enables digital ID is growing in reach and becoming more affordable by the day. In 2017 alone, an astonishing quarter-billion people went online for the first time, further increasing the potential reach of digital ID. Thanks to technological advances and cost reductions, it’s now possible for even developing countries to bypass paper-based identification methods and jump right into the digital age.
Unlocking Potential Economic Value Equivalent of 3-13% of GDP in 2030
McKinsey has found that by 2030, digital ID could unlock up to 13% of a given emerging economy’s GDP and up to 3% of a mature economy’s GDP – an economic value equivalent to billions of dollars. In emerging economies, even basic digital ID with essential functionalities could have a substantial impact, while in more developed countries, advanced digital ID programs with data-sharing features may be necessary to unlock the most value.
If digital ID adoption is high, it is estimated that 65% of the value would go to the individuals in emerging economies, and 40% would go to those in mature economies. This could be a huge boon to individuals and societies alike, with the potential to completely transform the global economy.
Around one third of Estonian voters logged into their digital accounts to cast their ballots online. Utilizing the power of Digital ID, they were able to securely confirm their identity, allowing them to participate in their democracy.
“Roughly 1.2 billion people with digital IDs live in India alone, registered in the Aadhaar program” according to McKinsey Report Digital identification: A key to inclusive growth. Digital ID technology with biometric recognition has been used to help citizens access much needed services in remote regions. For example, people have been able to use the technology to prove their identity when accessing food banks.
And in Malta, citizens have been able to leverage Digital IDs to create digital signatures and protect their online purchases.
The use of digital technology to secure identity and transactions is a powerful tool that is transforming the way citizens interact with the world around them.
Exhibit 2
“The industry needs to work closely with businesses, governments and regulators to create a system that is transparent”
Governments and the private sector must work closely together and take the initiative to ensure digital ID programs are robust and secure. They must ask themselves essential questions such as: How can we prevent misuse of digital ID? How do we guarantee users control their personal data? What is the best approach to developing a universal standard? And how can we expedite implementation? The answers lie in constructing a suitable legal framework, fostering interoperability, and establishing a firm governance structure. By taking these steps, countries can leverage the power of digital ID and unlock a world of unimaginable possibilities and more rights for each and everyone.
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