Businesses predicts revenue boost from digital ID adoption: Regula survey

A study by Forrester Consulting and commissioned by Regula has found that almost 9 in 10 businesses globally anticipate a positive impact on revenue from the adoption of digital IDs.

The study titled “The New Imperative: Digital IDs,” reveals insights into how businesses worldwide perceive the impact of digital ID implementation on revenue from the 226 manager-level respondents surveyed. All participants are responsible for their organization’s ID verification offerings.

It was also revealed that 32 percent of businesses foresee a 20-29 percent rise in revenue, while 10 percent of the respondents believe there will be no significant change in revenue. Regionally, the Middle East stands out with greater optimism, as only 4 percent of respondents expect no significant change in revenue, compared to 10 percent globally and 13 percent in Europe.

Online financial transactions top anticipated gains

In North America, the most notable impacts are anticipated in online financial transactions (51 percent), online account opening (39 percent), remote customer onboarding (36 percent), and eCommerce transactions (35 percent). North America also showed a higher inclination to enhance age verification through digital IDs, with 21 percent expecting improvements in this area.

In Europe, 44 percent predict positive changes in online financial transactions, 38 percent in online account opening, 36 percent in eGovernment services, 30 percent in remote customer onboarding, and 29 percent in mobile device access. Europe appears more focused on improving eGovernment services, with 36 percent of respondents expecting benefits from digital IDs.

In the Middle East, respondents expect improvements in online financial transactions (44 percent) and online account opening (35 percent), though these rates are slightly lower than global figures. The region also anticipates positive changes in workplace access and remote work (30 percent) and healthcare services access (26 percent), which are higher compared to global and other regional averages.

Also, 74 percent of surveyed stakeholders emphasize the necessity for global digital ID standards to ensure interoperability and consistency across borders. This comes as half of the respondents note the belief that there will be an increased risk of data breaches and cybersecurity threats as digital ID adoption grows.

Identity verification approaches shifting

The report stands firm on Regula’s position that physical ID documents remain integral despite the consensus that the integration of digital IDs will boost the global digital economy. What will change is how they are reviewed, with 46 percent still using manual ID document checks, even as 54 percent use biometrics to automate the authentication of the person against the document.

“Businesses are shifting their approach to identity verification. Once merely a legal requirement or a commodity, it has now become a technological advancement and a strategic imperative,” says Ihar Kliashchou, chief technology officer at Regula.

“Our study shows that companies worldwide see the transformative potential of digital IDs to boost revenue, enhance security, and improve user experience. As we innovate and deliver advanced identity verification solutions, we are dedicated to helping businesses unlock these benefits and thrive in the digital era.”

Digital ID adoption is expected to have an impact on online financial transactions, online account opening, ecommerce transactions, digital government services, and remote customer onboarding.

Article Topics

digital economy  |  digital ID  |  digital identity  |  financial services  |  identity verification  |  Regula