Why the digital ID opportunity is ripe

Helena Nimmo at Endava argues for Digital ID and contends that it is a powerful opportunity for the strengthening and personalisation of data security online

 

It’s likely that we have all felt the frustration of current identification and authentication practices. Siloed data on everything from our pensions to our taxes, welfare benefits and health records means that information is often difficult to access. With multiple passwords and usernames, as well as various gateways to navigate, it’s a far cry from the quick and seamless user interactions we all crave. 

 

Just consider the steps needed to register a birth as one example of many. Not only do parents have to physically visit a registry office, but they must do so within 42 days of the child being born – a task that can be tough for mothers recovering from childbirth and those in rural areas with limited transport options. Now imagine if there was a way of digitising the process and securely verifying all the personal information required, all without leaving the house.

 

With digital ID, this is a very real possibility. Creating platforms with all our citizen data in one place will pave the way for both public and private sector organisations to deliver far more convenient services and sophisticated user interactions.

 

Recognition of digital ID’s value potential is surging, with solutions in the space on the rise according to a Statista report that shows the global market is projected to grow from nearly 28 billion U.S. dollars in 2022 to almost 71 billion U.S. dollars by 2027. 

 

With the proliferation of the Internet of Things (IoT) meaning that there are now more machines with a digital ID than there are humans, in the future it seems there won’t be a single vertical where machines aren’t connected to our identities as a user or owner.

 

But while some people and organisations are apprehensive about the prospect of centralising our data, and the potential consequences of this data reaching the wrong hands, the opportunities of digital ID far outweigh the perceived risks.

 

Tackling digital ID’s PR problem

Some countries like the UK are nervous that a wealth of personal information lies behind a password. However, it’s important to note that a lot of citizen data is currently stored in legacy systems that lack adequate protection. With digital ID we can leverage much stronger security measures such as multi-factor authentication, biometrics, and encrypted data.

 

Indeed, a huge part of the drive towards becoming digital citizens is motivated by combatting increasing instances of identity fraud and data breaches. 

 

Once nations overcome trust barriers collectively, they can be better set up to embrace the benefits of convenience and accessibility that come with being digital citizens. In countries such as Singapore, Estonia, and Ukraine where there’s a collective desire for digital ID, as well as active encouragement to help people become digital citizens, they are already reaping the benefits.

 

For instance, Singpass is Singapore’s national digital ID initiative that bridges access to over 700 government agencies and private sector services, enabling citizens to easily and securely do anything from digitally signing documents to checking their pensions and renewing insurance policies in one place.

 

Its success is stimulating growth in the private sector too, improving the efficiency of digital services by facilitating secure, consent-based verification and paving the way for a continuously improving national digital economy. 

 

Creating a catalyst for growth 

At the heart of realising digital ID is being able to join the dots between user data. And in doing so, organisations will increasingly be able to innovate meaningfully and develop value-added services. We’re already seeing the automotive sector deploy functionality built into cars that enables users to purchase additional product features on demand via apps, and as the principles of digital ID come into play, sophisticated interactions like these will take flight across verticals from mobility into the realms of insurance, payments and even healthcare.

 

For example, as healthtech advances to take advantage of digital ID’s possibilities, it could have lifesaving significance by leveraging medical records and biomarkers together with artificial intelligence, machine learning, and algorithms to diagnose people quicker or support successful pharmaceutical trials. While we’ve already seen monumental digital progression in payments, digital ID will present the opportunity to facilitate consistently slick and secure transactions across digital channels. 

 

While the promise of digital ID is clear, to reap the rewards it’s critical for organisations to stay sensitive to evolving cultural, technological, and regulatory considerations. Identity management strategies need to be flexible and adaptable, building on the experience for users as the landscape changes while assuring that data is protected and used responsibly as regulations inevitably catch up. This includes understanding generational differences for adoption and designing interfaces to be intuitive for people of all ages, backgrounds, and disabilities.

 

While younger generations will naturally be more at ease and inclined to evolve with the technology as they’re naturally more immersed in it, it’s important to ensure the pace of innovation doesn’t create exclusion points for other users. 

 

In carefully considering potential friction points and building buy-in before diving into implementation, digital ID can become an open and trusted flow of data – one that provides seamless convenience and accessibility for citizens while creating a gateway for competitive differentiation for businesses. 

 

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Helena Nimmo is CIO of Endava 

 

Main image courtesy of iStockPhoto.com