The Future of Digital Identity 2022: Global schema for digital identity wallets

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The Future of Digital Identity 2022: Global schema for digital identity wallets

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This content is contributed or sourced from third parties but has been subject to Finextra editorial review.

This is an excerpt from Finextra’s report, ‘The Future of Digital Identity 2022: Inclusive, secure, fit for purpose.’

Data taken from Oliver Wyman’s report ‘Digital Trust: How banks can secure our digital identity

EU: Currently a coordinated effort to bring digital identity to the European Union. To meet the objective of 80% adoption all EU member states will be required to have a digital identity scheme delivered either by the public or private sector, which states, and some private companies will be required to accept.

Nordics: All four Nordic countries established their individual digital identity schemes in different ways, they all have similar rates of penetration - Norway’s BankID with 74% penetration, Sweden’s BankID with 78% penetration, Denmark’s NemID with 85% penetration and Finland’s TUPAS with 87% penetration - and financial institutions had a big part to play in their success.

China: China’s government issued/owned and privately delivered model has seen multiple digital identity schemes emerge from government, banks, payments providers, and tech companies. China has a combined adoption rate of 60 - 75% for digital identity solutions.

Canada: Canada’s Verified.Me was designed on the foundations of Government guidance and delivered by a partnership of seven major financial institutions. The scheme currently has a 30 - 50% adoption.

Estonia: The government issued and delivered E-estonia allows ‘smartID’ providers with access to government services, utilities, financial services, education, commerce, and healthcare. E-estonia’s eID card currently holds 99% adoption, while the smart ID sees 44% adoption and the mobile ID 19% adoption.

Belgium: The Itsme scheme in Belgium has seen a private sector delivery on the basis of a government-led regulatory framework. 70% of the adult population have adopted the eIDAS approved e-ID, with increased use seen after Itsme was used as the authentication mechanism for Belgium’s Covidsafe.be app in 2021.

India: India’s government issued and delivered AADHAAR scheme is one of the globe’s strongest with 91% adoption. Though launched and managed by the government, the private sector is now building services on top of AADHAAR for payments among other use cases.

Australia: The Australia Government Digital Identity is still an emerging initiative with five to 10% adoption. While governed by the government, there is scope for the private sector to act as digital identity service providers within the ecosystem.

Korea: Korea’s government led digital identity scheme is currently only available for government officials. The delivery of the scheme is likely to be outsourced to tech firms.

USA: The USA’s LOGIN.GOV scheme has seen less than 5% adoption. The scheme was crafted to improve access to government services, with further investment required to turn it into a more sophisticated digital identity scheme. Private sector firms (including banks) are working on various digital identity models, but many doubt a single national scheme will be agreed upon.

South Africa: Digital Identity schemes are currently being discussed with collaboration between the public and private sector. The Secure Citizen scheme is a private sector funded model focused on reducing fraud and boosting digital inclusion, however further schemes with broader use cases are planned.

UK: Government guidance began re-appearing in 2019, and the Department for Digital Culture, Media, and Sport is leading development of the trust framework expected to come into legislation in 2022/2023. The private sector is currently collaborating with associations like UK Finance and TISA to discuss their potential role in a future scheme. The UK currently has <5% adoption rate for digital identity schemes.

Japan: The Japanese government recently issued an e-ID card and has plans to provide a smartphone version. The My Number card scheme currently has a 38% rate of adoption.

Source: Oliver Wyman

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