How Digital Trust and Identity Verification Solutions Can Boost Canada’s Prosperity

Over the last ten years, Canada has made strides in digital identity, working collaboratively with the industry to implement several bank-based identity use cases. For example, Canadians can now use their bank credentials to securely access government services and more safely interact in a digital world.

But in an era where we are increasingly digital in all aspects of our lives, Canada has a unique opportunity to become a global leader in digital trust and identity verification by enabling people-centred use cases that focus on user privacy, security, and convenience, benefiting both consumers and businesses.

For consumers and industry, the benefits of digital trust and identity verification services are substantial. 

The Importance of Digital Trust and Identity Verification

The use of digital credentials would reassure consumers, retailers and payment services that they’re all dealing with the intended parties before money and goods are exchanged. For example, retailers selling age-restricted goods, such as alcohol, could verify the age of consumers through their digital credentials rather than a physical identity

The benefits of digital trust extend to the economies of the countries that have implemented it. India and Singapore have both led on digital trust globally and have successfully seen their efforts translated into an economic boost. 

In a 2019 article, McKinsey estimates that digital trust can unlock approximately 4% of GDP in 2030 for mature economies through increasing economic inclusion, reducing fraud, and improving worker productivity. 

According to McKinsey, India is one of seven countries where digital trust can create economic value equivalent to between 3% and 13% of GDP. India is home to the world’s largest digital ID system. Over 1.3 billion citizens are enrolled in Aadhaar, India’s digital trust program that enables proof of identity and address, access to government programs, and banking and mobile services.

In Singapore, where the Singpass has seen adoption by approximately 97% of the population for identity verification, finance management, and other use cases, the digital trust sector is expected to grow from $1.7 billion to $4.8 billion by 2027. 

Similar economic growth can be unlocked in Canada. But to realize these benefits and mature the Canadian digital trust ecosystem, collaboration with public and private sector stakeholders, including standard setting bodies such as DIACC, will be critical. These stakeholders can’t operate in isolation if Canada is to successfully implement this technology. 

Collaborating for a Digital-Driven Future

The private sector, including banks, fintech companies, and telcos, can lead in developing innovative technologies to improve digital interactions. It’s important that these businesses continue to work together to build the foundation for a digital trust ecosystem by investing in cybersecurity and privacy protection for the digital financial ecosystem and developing new and impactful use cases. 

The public sector, meanwhile, will need to lead in digitizing records, modernizing data governance policies, and introducing regulations and guidelines for a digital trust ecosystem. All levels of government will need to work together to make digital trust a success in Canada. Without adoption across government services, Canadians may not trust a new system, regardless of how innovative, impactful, and secure it may be. 

In today’s digital interactions, users need to trust their digital counterparts. The availability of digital trust and identity verification will enable Canadians to have more confidence in their digital interactions while simultaneously boosting Canada’s economy.

Canada is well-positioned to advance the future of digital trust and identity verification by fostering collaboration, ensuring inclusivity, embracing assurance, risk management frameworks and standards, and building consumer confidence. Through engagement across public and private sectors, adoption of this technology can reap benefits for both consumers and the country.