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Digital Identification: A Key to Inclusive Growth

– McKinsey & Company

This new research by McKinsey Global Institute explores how digital identity, and ensuring all people have access to good digital identity and legal identity worldwide, will encourage positive inclusive economic growth. By focusing on the potential for significant value creation with digital identification, the team at McKinsey & Company dive deep into seven key global markets to review the current and future economic impact of digital identification.

Pages from Digital-ID-a-key-to-inclusive-growth-January 2019_Page_2.jpg
Graphic by McKinsey & Company - NOTE: The concept of “good” digital identity has been developed and expanded by leading groups in the identity space including Omidyar Network and the World Bank. Building on this, in September 2018, the World Economic Forum convened a community of stakeholders from government, business, and civil society to form the Platform for Good Digital Identity, which made a commitment to advance toward a “good” future for digital identities. SOURCE: World Bank ID4D; World Bank ID4D-Findex ; We Are Social; International Labour Organization; McKinsey Global Institute analysis

As noted in the report summary itself:

In the seven focus countries of Brazil, China, Ethiopia, India, Nigeria, the United Kingdom, and the United States, the report examines how digital identification can create significant economic value for individuals, business, and governments around the world:

- There is 3-6 percent economic value by 2030 from the good use of digital ID for a typical mature or emerging economy, respectively.

- Roughly half the potential could accrue to individuals who benefit most as consumers, including financial services, and as taxpayers and beneficiaries who gain access to efficient government e-services.

- Institutions could gain from higher productivity, cost savings, and fraud reduction, for example by reducing customer onboarding costs and implementing streamlined employee verification processes.

- Responsible use and high adoption of digital ID programs are not automatic and require the right principles and policies. All stakeholders – government, business and civil society – can take steps towards this.

McKinsey Global Institute


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