A few years ago, few people could imagine how you can sit in a personal stranger from the Internet and go on business or invite someone from the network to help with household chores. Today, millions of such transactions occur daily. But there are difficulties with confirmation of the identity of counterparties. They feed the distrust that limits the truly wide penetration of online services.
For example, the family uses a digital platform for concluding a contract with a nurse, providing care for an elderly relative. Most likely, the family will face difficulties in verifying the identity and authenticity of the qualifications of the applicant. It is impossible to be guaranteed to confirm that the specialist you has found on the network, the one for whom it gives out that he provided genuine personal data on the online platform.
Digital Identity: Learn Me onlineThe digital revolution brought with him not only convenience, but also new forms of fraud, theft of personal data and scripts of their unlawful use. In parallel incidents associated with cybersecurity, became an ubiquitous and constant threat to privacy of personal data, threatening the basic mechanisms for the confidence of society.
To reduce risks and increase the confidence of the organization's users, the identification scenario and rechecility of the digital identity is added to the business processes of the real person. However, these mechanisms make it make a certain set of actions reproducible with each new episode of interaction. At the same time, a chain of risks associated with the confidentiality of the data provided is launched.
Questions are becoming increasingly relevant as the digital formats of business models in the economy are becoming the norm. People and organizations are forced to trust information about counterparties. For this, they need a reliable, honest and safe way to identify in digital space.
The need to solve the problem of digital identity is aggravated by both regulatory and social pressure. Against the background of technical progress, users and regulatory authorities require people to receive wider control over their data management.
The time has comeWhy is the digital identity so important today, when the business is required so much to change in basic activities during the transition to the benefits of the digital economy? Why should Identity be priority?
Each organization today has certain identification capabilities and mechanisms. However, they are all complicated, scattered and often in no way automated even within one company. Consumers are expecting seamless convenient online personal verification processes with a minimum headache.
Today they have to interact with an unprecedented number of service providers, each of which requires constant confirmation and multiple return to its ID, the request of personal data, etc. To submit an application for employment, applicants need to submit documents confirming their education to check which potential employers can take place. Potential employees will have to repeated this process with numerous employers.
Similarly, the creation of a new company involves the participation of state bodies confirming multiple documents; On average, this process takes from one to six months. In addition, the process is usually carried out manually. Possible costs associated with the long processing of applications, repeatedly checking the same set of information and manual paper processes, are significant for both sides.
Business value in captivityThe distribution of restrictions in the COVID-19 pandemic has encouraged to accelerate the adaptation of digital solutions, the expansion of the Digital-World borders - ensuring security and thereby increasing confidence in digital operations - is of paramount importance. According to experts, correctly configured processes for verifying digital identity across the economy can create an additional cost in the range from 3% to 6% of GDP.
50% of this volume will be accomplished by individuals, another 50% on enterprises and governments. Thus, high-quality digital identity confirmation processes can reduce business costs when issuing data on new customers by 90%. Many states and international organizations already invest in this direction.
As an example of the possibilities of using seamless verification of digital ID, the KTDI Pilot project can be brought. This is a transboundary digital identity card using blockchas and biometric data supported at the level of governments. KTDI allows cross-border trips without presenting physical documents, which speeds up the passage of passengers through airport control and security services, improves the level of client service and allows the authorities to focus limited resources on critical safety risks. In the aviation sector all over the world, this system and its analogs can save about $ 150 billion due to acceleration and simplify the border crossing procedure. Today, the platform has already been tested by the Canadian government and KLM airline in Amsterdam Schiphol Airport.
Cooperation Capacity: Business, Citizens, StateCurrently, only 26.2% of online platforms require new identity confirmation users by providing documents. Mostly, the sheering services, various types of delivery and taxis work, based on the presumption of basic trust in users when conclusion of transactions.
Providing reliable solutions to ensure confidence in economic relations improves user experience, which leads to an increase in trust and an increase in economic value. Today, the loss of confidence from the consumer is cumulatively costs $ 2.5 trillion brands due to migration to competitors.
By 2023, such initiatives will help reduce customer outflows by 40% and increase the indices of the lifelong value of the client by 25%. About 70% of the volume of commercial value in the global economy over the next decade will be formed by digital platforms: including those that have already provided access to joint use of housing, transport and labor resources of part-time employees.
Horizons of ProfitFor companies, reliable digital identification can create new markets and business areas, improve the quality of customer service, as well as provide protection against fraud when protecting privacy.
As for manufacturers and consumers, a reliable and efficient digital identification system can open the world of online trading in terms of creating new jobs, the development of supply chains, partnerships, products, services and customer experience.
The correct tracking of the identity data on products and goods in supply chains will help to establish the origin of the products and increase the confidence of consumers, increasing the revenues of manufacturers and helping in combating such abuses as fake and child labor.
For example, if data on patients and medical equipment can be reliably identified and authenticated, and online access to them is organized with safety and ethics, then competent digital identification can lay the foundation for a new wave of innovation in health care.
A seamless exchange of medical information between organizations begins to develop within the framework of interconnected information systems in health care and can form a potential benefit exceeding 1% of GDP - this is $ 205 billion.
Started!The recent IT'SME application in Belgium can be used to identify when interacting in online with more than 100 companies and organizations in various sectors of the economy, including financial services, telecommunications, public services and healthcare.
Digital identification systems, such as bankid in Sweden, will help organizations reduce costs through the use of pre-verified information, which will potentially save $ 60 million, which the average bank spends on KYC every year. Bankid Currently boasts almost 8 million users (about 100% of the national market), which gives the system the opportunity to conduct confirmed transactions in various scenarios of the interaction of counterparties on online platforms. The LUXTRUST consortium, initiated by the main banks and the Luxembourg government, works in a similar way.
In general, it is already possible to say that the development of identification systems and mechanisms recognized by the industry and confirmed at the level of states is one of the main digitalization vectors in the 21st century. As these solutions will cover all new directions of the economy in new regions of the world, the Company will face an avalanche-like growth of identification data, which in turn will provoke the demand for solutions to storing this information throughout the life cycle, including user devices and Transmission means.