“Identity” is a complicated concept, to be sure, but “capacity to prove who you are is a fundamental component of economic, financial and social development,” according to BBVA Research. Boarding a flight, visiting a doctor, accessing a bank account – for most of us, these activities are routine, and being asked to present valid identification – a driver’s license, passport, or other physical document – is just another step in the process.
But as economies – and entire societies, including the United States – become increasingly digital, how does the traditional concept of identity, as defined by physical documents, mesh with the rapidly expanding digital infrastructure that supports a range of everyday tasks? In an increasingly connected world, the concept of secure, interoperable digital identity is a potentially transformative solution.
According to BBVA Research, “digital identity is the online version of an individual’s physical identity. It consists of all of the individual´s personal data that is available online—not just an email or physical address, but also pictures, banking info, shopping preferences.” Securely harnessed, online identity can form the basis for reliable identification, just as information like birthdays, addresses, and social security numbers underpins existing identification documents.
The case for secure digital ID is compelling, says Bart Suiches, Head of Digital & Software at SICPA. Widespread data breaches at major companies show that “we have yet to find the right balance between the convenience of centralized services and the security and privacy of decentralized solutions,” says Suiches. As businesses and governments look for ways to balance critical security concerns with inclusivity and operability for consumers on digital platforms, secure digital ID has the potential to both provide greater convenience for consumers and more effectively safeguard sensitive personal information against improper exposure.
Creating a secure, reliable system for digital identity, however, will require a substantial shift in thinking from governments, which – today – are the single issuers of trusted identity documents. Bart Suiches, Head of Digital & Software at SICPA, argues that, in order to reflect the migration of so many critical functions online, governments must transform to become the facilitators of “an ecosystem of actors that all have a role to play in identity.” Rather than monopolize the issuance of trusted identity documents, Suiches argues, governments should establish a strong regulatory framework for digital identity and allow market innovation to drive the creation of a secure, interoperable solution.
One country embracing the move towards digital identity is Canada. In the private sector, Canadian banks and telecommunications companies are “contributing data about their customers to a new, comprehensive digital ID system aimed at allowing people to access insurance and credit reporting services more quickly, and eventually other businesses, health or government services,” according to Vice News.
At the federal level, Canada recently joined “a network of countries that aim to harness digital technology for the benefit of citizens and the broader digital economy. One element of this strategy is developing a trusted digital identity platform that allows citizens to register just once for a range of government services available online,” according to a blog post from TransUnion. According to the blog, expectations among customers for digital services from government are rising, but the legacy system in Canada is outdated, making the case for a pan-Canadian, interoperable digital identity system – “given that there is an abundance of different government services that citizens can register for online, it’s easy to see the benefits of government adopting a pan-Canadian approach to digital identity. This approach can help to meet citizens’ expectations of providing their personal information just once, or only when necessary, with consent.”
The application of digital identity is clear, and the adoption by individual industries show the potential of an interoperable system of digital identification. Now, it is up to governments and the private sector to work together to test digital identity systems that have the power to provide secure, interoperable identification across sectors and borders.