Trusted digital identity can untap GDP potential, Callsign survey says
Digital trust may be difficult to measure, but increasing it just 5 percent is associated with an increase in GDP of $3,000 per capita on average, according to research released by Callsign.
More than two-thirds of consumers (68 percent) say they support the establishment of a digital ID system to increase trust, with South Africa (80 percent) and the APAC region (79) percent most enthusiastic. Just under half (47 percent) say the government and public sector should lead the creation of secure digital ecosystems. The most trusted stakeholders to establish and maintain digital identity are banks and financial institutions, according to the Digital Trust Index.
Composed for Callsign by independent consultancy The Centre for Economics and Business Research (Cebr), which examined the economies of Western and non-Western countries to quantify the relationship between digital trust and economic growth. The breakdown of nine countries and regions shows that 27 percent believe they a regulated digital identity system will become part of their daily lives within the next year, on the way to 50 percent participating in such a system within the next five years.
The survey also delves into the relationship between digital and societal trust, and other factors that can affect digital trust. From there, the connection between societal trust and GDP is established.
“Organizations across the globe are looking at digital identity as the foundation to their digital ecosystem– delivering trusted interactions for consumer-to-business as well as business-to-business interactions. The research also demonstrates the negative impact if the industry doesn’t take proactive measures to address consumers’ building lack of digital trust,” says Julie Conroy, Head of Risk Insights at Aite-Novarica Group.
Trust in online and digital services is highest in the Nordics, followed by the Middle East and Africa, and lowest in Brazil, South Africa, the U.S. and Canada. Similar results were seen in societal trust.
“For too long, trust has been referred to as an abstract concept without commercial consideration or investment to address it however, the influence of digital trust is now quantifiable,” comments Zia Hayat, CEO and co-founder, Callsign. “At this critical time, our study found hundreds of billions could be unleashed into our economies by improving digital trust. For businesses and governments this means working together to build ethical, secure digital identities. Knowing who you are interacting with online is the foundation for digital trust, and now is the time to act as we look to reimagine our economies for a digital world.”
Cebr Managing Economist Josie Dent called the appetite for digital identity to improve trust “a trillion-dollar pent up opportunity for businesses and governments.”
Callsign North America VP Joe Micara pitched behavioral biometrics as a tool for Netflix to discourage password-sharing without burdening users with friction in a Biometric Update guest post earlier this month.