Digital IDs Need both Government and Business Backing – The Ecosystem Underpinning Adoption in 2024 and Beyond

This month marks the fifth anniversary of Thales Digital Identity and Security – the time really has flown by!??

It’s natural to look back and reflect during such milestones, however for myself and the team it’s an opportunity to look ahead to the next five years. While we have a good idea of where we’ll be in that time – the pace of change never fails to amaze me. Take the adoption of digital IDs as an example; it’s estimated that by the time the year is out there will be over one billion in use across the globe1.??

Now, if you’ve followed me for any length of time then you’ll be aware of the many benefits digital identities bring with them – for end-users, businesses and organisations alike – so this adoption rate might not seem to be a huge surprise. What is interesting though, has been the drivers behind this growth. For example, did you know that…?

72% of digital ID adoption comes from the APAC region and 15% from the EU?

Mobile drivers’ licenses represent half of digital IDs in circulation?

70% of those in circulation have been issued by governments?

Digital identity can help reduce online identity fraud by up to 90%?

It might be a surprise to those not directly in the industry that public organisations have been such a driving force behind this adoption. There’s a classic stereotype that it’s often the private sector that drives behind digital transformation. But when it comes to digital identities, both private and public sector organisations have a key role in fuelling their widespread adoption and safe development.?

Enhancing security & convenience for citizens?

A prime example of a successful government rollout of a digital ID scheme is in Queensland, Australia. For years our team has worked closely with the government there to deliver the state’s first digital licence app (a digital ID wallet containing various digital credentials).??

The mobile driver’s license gives all the same uses and validity as a traditional driver’s licence and serves as a proof of age. The wallet can also host identity credentials as well as marine licenses.

Designing IDs with privacy at the core??

In contrast, Europe presents a unique ecosystem where banks, telcos, and national posts have been the primary drivers of digital identity schemes. These schemes have achieved very high penetration rates among their national population (in some cases upwards of 90% of eligible users), who use them daily to connect to hundreds of online services.??

Most private sector organisations are subject to very stringent rules and regulations – particularly in sectors such as banking – ensuring that these schemes enforce data privacy and stringent security measures to protect user data.??

Interoperability will lead to greater adoption?

On the surface it looks like a tale as old as time… the private sector brings usage, the public sector brings security. While on the very surface that might be true – it’s the combination of these two factors that can really usher in the age of the digital ID.??

We can’t talk about this and not mention the eIDAS2 legislation. The eIDAS framework, not only requires all EU member states to make ID wallets available with certain Levels of Assurance (LoA) standards, but organisations (such as banks, telcos and digital platforms) will have to accept digital identities from EU ID wallets. The schemes enforce data privacy and security measures, enabling them to protect citizens’ data. These frameworks ensure interoperability, essential for the widespread adoption – and trust of digital identities across Europe.?

The digital identity landscape is at a pivotal juncture, with collaboration between public and private sectors fostering a secure and user-friendly environment. This collaboration comes at a time where legislation is maturing – giving users greater confidence that their data is secured. Not that I want to wish the next five years away, but I am keen to see just how this ecosystem of public and private collaboration has evolved in that time.???