Kirsten Salyer, Public Engagement, World Economic Forum, +41 79 265 87 73, email@example.com
· Consumers increasingly demand security when sharing their personal information online
· The cost of identity authentication and fraud redress is expected to hit $28 billion by 2023
· A new paper Reimagining Digital Identity: A Strategic Imperative demonstrates how partnerships can ensure improved data protection
Geneva, Switzerland, 16 January 2020 – Businesses must rethink how they verify people’s identity online and manage personal data, according to a new paper, Reimagining Digital Identity: A Strategic Imperative, released today. The paper outlines the risks involved for businesses and consumers in the digital management of personal information.
The need to ensure protections for digital identities is growing: about 57% of customers say they are uncomfortable with how companies handle their data, according to SalesForce. Digital users expect customized, convenient experiences, yet they also want products and services to be delivered in a trustworthy and secure way.
Too many existing approaches to identity and data management offer inconvenient experiences for consumers, leave them vulnerable to identity theft and fraud, and put them at risk of abuse. The cost of identity authentication and fraud redress is expected to hit $28 billion by 2023, according to Boston Consulting Group.
There can be high costs for businesses that fail to act. For example, a lack of trust costs businesses $2.5 trillion per year. Estimates show that as each business builds its own separate approach, businesses are estimated to be losing potential revenues of up to 30%.
Meanwhile, collaborative efforts show how trusted digital identity systems can lead to increased user confidence. For example, collaborative, bank-led digital identities could help reduce the $60 million spent on customer verification globally each year. In the health care industry, seamless and secure sharing of medical information between organizations can save 50% of US GDP. And with the gig economy expected to grow to $335 billion in revenue by 2025, digital identity can enable trust in the legitimacy and credentials of workers, especially on gig and sharing economy platforms.
“The digital economy requires trust to function and digital identity is an essential component of trust. Business leaders are increasingly recognizing that sustaining trust through a clear, strategic approach to identity is very much in their own interests as they seek to build and retain customer relationships,” said Derek O’Halloran, Head of Shaping the Future of Digital Economy and New Value Creation at the World Economic Forum. “Furthermore, stronger collaboration between businesses, governments and customers strengthens trust – delivering both business growth opportunities and individual protections”. For example:
- Sweden’s BankID, a bank-led, government-recognized collaboration that reduces the costs of identity verification, enables 8 million users, nearly 100% of the market, to conduct a variety of transactions across sectors
- Known Traveller Digital Identity brings together governments, airlines, airports and other actors to provide seamless, personalized, secure and trusted travel journeys, which could enable passport-free mobility and unlock potential value of $150 billion
- The Synaptic Health Alliance joins insurers with health systems, diagnostic and healthcare network service providers to ensure through new technologies that their provider data is accurate and sharable across the healthcare ecosystem, for improved access to care, reduced costs and lower administrative burden
“Digital identity is essential to the growth and viability of our digital economy, and fundamental to every organization, across every sector,” said Paul Daugherty, Chief Technology and Innovation Officer, Accenture. “It enables organizations to build trust with their customers, streamline and secure their operations. To succeed, the reimagining of digital identity is needed. Collaboration in digital identity across sectors and organizations is crucial to foster growth and deliver better business outcomes in the digital world.”
“We want everyone to thrive in the digital world – no one should be left behind,” said Jes Staley, Group Chief Executive Officer, Barclays. “That means educating everyone on how to keep themselves and their data safe online, which is something that we at Barclays are very passionate about. But it also means ensuring universal access to a safe, secure and easy-to-use digital identity, so that everyone can confidently unlock the benefits of the digital economy.”
“To truly make the digital world work for all, we must rethink traditional notions of digital identity and break down artificial barriers,” said Ajay Bhalla, President, Cyber and Intelligence, Mastercard. “We need a new model that starts with a commitment to the fundamental individual right – ‘I own my identity and I control my identity data’ – and we need businesses, governments, NGOs and others to forge partnerships and invest resources in a common framework, principles and standards.”
World Economic Forum Annual Meeting 2020
The World Economic Forum Annual Meeting 2020 will take place on 21-24 January 2020 in Davos-Klosters, Switzerland. The meeting brings together more than 3,000 global leaders from politics, government, civil society, academia, the arts and culture as well as the media. Convening under the theme, Stakeholders for a Cohesive and Sustainable World, participants will focus on defining new models for building sustainable and inclusive societies in a plurilateral world.
The World Economic Forum’s Annual Meeting brings together governments, international organizations, business, civil society, media, culture, foremost experts and the young generation from all over the world, at the highest level and in representative ways. It engages some 50 heads of state and government, more than 300 ministerial-level government participants, and business representation at the chief executive officer and chair level. For further information, please click here.
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