‘Unhappy path’ to identity verification costing businesses: Women In Identity

The hidden costs of failing to build inclusion into identity systems during the design phase are unclear, even to organizations that aspire to ID inclusivity, according to a research report from Women In Identity.

Women In Identity commissioned Professor Edgar Whitley of the London School of Economics to research the business impact of identity exclusion as part of the organization’s ID Code of Conduct research program.

The new report, “The Economic Impact of ID Exclusion,” has been completed, and will be launched to public availability on June 12 with a webinar and an in-person event, both free to attend.

ID Code Of Conduct: The economic impact of ID exclusion launch event

Nearly a billion people around the world still do not have legal identification, and an estimated 3.3 billion do not have a digital identity.

Whitley’s research shows that attempts to perform identity verification can be generally divided into those on the “happy path” and those on the “unhappy path.” The latter entails high friction and exclusion for individuals. But it also entails higher costs, such as in the form of higher interest rates in the case of loans, if they are able to complete the process, in an example Whitley provided in a preview of the research results shared during the ID4Africa 2025 AGM in Addis Ababa, Ethiopia. At the same time, the relying party takes on higher costs for each person on the unhappy path, and in many cases fails to complete the transaction.

Therefore, the recognition that “identity inclusion is good for business,” leads to the key conclusions that organizations must widen the happy path by considering inclusion from the concept design phase. They must also deepen their understanding of the tasks, and costs both monitored and hidden that are associated with interacting with customer on the unhappy path.

The launch will include a webinar featuring Whitley and Naomi Baur from the London School of Economics and Women In Identity Research Director Dr. Louise Maynard-Atem and Executive lead Dr. Sarah Walton. The webinar is free with registration, will be moderated by Biometric Update, and include insights from sponsor organizations RBC, Mastercard, GBG Trust and KPMG.

A networking meetup hosted by the London School of Economics will also be held as part of the June 12 launch.

Article Topics

digital identity  |  digital inclusion  |  ID Code of Conduct  |  identity exclusion  |  legal identity  |  Women in Identity