How will digital identity solutions revolutionize society for generations to come?
The identity of an individual or an entity is an essential element since it determines who he is. It is as important as physical identity as it preserves the inherent qualities that make identity distinctive while helping governments achieve social inclusion, digital transformation and improved service quality, among other goals.
A controlled digital sphere
The digital revolution affects all segments of society. The most obvious change is the increased prevalence of multiple access points to online services, including the Internet and mobile applications.
In the digital age, identity verification and individual identification are increasingly mediated by new technologies and solution providers. For digital identity validation, details such as date of birth, place of birth, ethnicity, country, and body characteristics such as eye and hair color are frequently used.
Identification and verification rely heavily on biometric information such as fingerprints and iris. An example of biometric-based identification is India’s Aadhaar program. Using biometric technology, it records fingerprints and iris as well as personal data such as name, date of birth and residence. This allows Aadhaar cardholders to voluntarily use their number to digitally prove their identity in various applications while maintaining privacy, security and inclusion. In a report by IBEF, it was recorded that 23.45 million e-KYC transactions were carried out in Aadhaar in August.
Solutions merging biometrics and blockchain technology for digital identity have emerged in the digital realm. With decentralized distributed ledger technology, data is not kept in a single central database. This makes it difficult to delete or modify the data in it as it is encrypted and saved in various blocks in the chain, ensuring top level data security.
Ensure a secure digital identity
Data management and authentication become more secure thanks to new technical solutions. Additionally, the image of advanced KYC is rapidly changing due to the development of biometrics. The most widely used technique is fingerprint scanning, although contactless technologies are rapidly gaining popularity. Facial recognition is the pinnacle of contactless biometrics and enables solutions to be applied in contexts with efficient business practices with less friction. Organizations and governments can now ensure security through improvements in biometric technology, such as deep learning for video analytics.
Ease of doing business with digital identity
Digital identity technologies can be used for both societal and individual gain, serving as "dual purpose" tools. The increased prevalence of digital ID has created an ecosystem for individuals and businesses for simplified registration and authentication procedures, secure online payments and high-assurance digital contracts, for example through notary services digital. The technique is especially beneficial for industries like financial services that collect a lot of consumer data. It has also become a crucial enabler of streamlined know-your-customer solutions, delivering seamless interactions between customers and businesses.
With the increase in digital interactions, the volume of customer data held by organizations has also increased.
This data availability provides a significant opportunity to use analytics to better understand customers and provide more efficient and personalized customer contact and user journeys.
Digital identity at the service of well-being
The modernization of public services such as those involved in health care, social benefits, certificates and licenses is made possible primarily through the use of a digital ID. Providing remote online authentication increases user convenience, reduces potential travel costs, and shortens wait times. Technology improves administrative efficiency from a government perspective by minimizing paperwork, speeding up transactions and reducing the possibility of identity theft. Digital ID can enable citizen engagement in ways other than public services, including electronic voting. For example, the Indian government, through the launch of Aadhar, is migrating to e-governance and m-governance to ensure that grants are disbursed to people directly into their bank accounts.
A digital ID system improves the connection between private and government entities and individual citizens. It is an essential element for designing and developing more creative, agile and responsive services. In particular, it helps reduce operating expenses, improve customer satisfaction, reduce turnaround times, speed up deliveries and improve safety. As the digital environment is constantly evolving and ensuring secure digital identity, the younger generation will have more secure data and convenience to conduct digital transactions.
The opinions expressed above are those of the author.
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