The future of digital ID

Justin Walker at Thales outlines some key industries that are likely to be reformed by digital identities

The concept of identity has evolved dramatically over hundreds, if not thousands of years. However, recent technological developments have accelerated the need for secure and reliable digital identities, with Lord Hague and Tony Blair recently urging the government to roll out digital IDs as a part of “fundamental reshaping of the state of technology.”

As more aspects of our lives move online, digital identity has become an increasingly important enabler in facilitating many of our online experiences. With there being more and more touchpoints where we must prove who we are, digital identities balance the need for security with the convenience that online interactions offer, streamlining the process of verifying that someone is who they say they are.

For example, India and Estonia have already made transitions in implementing digital identities for citizens, and the Queensland Government have rolled out digital driver’s licences across the State, showing how governments and companies globally are becoming more open minded to digital methods of identification.

The concept is already well-established for certain uses, with digital wallets being used to store bankcards, tickets, boarding passes, and vaccinations records, for example, making it second nature to many of us nowadays.

In fact, over the next few years the number of users using digital ID is predicted to increase by more than 50% from 4.2 billion in 2022 to 6.5 billion in 2026. Based on this trajectory, digital IDs will become even more mainstream in the daily lives of citizens very soon – it’s just a matter of time.

The future of air travel

Think back to the last time you flew; how many times did you have to dig out your boarding pass and passport at the airport?

Imagine a scenario where before arriving at the terminal, you would have all relevant travel information consolidated into one digital wallet or app. You would upload your travel documents to said app – including your passport and boarding pass - which would then create an auto-generated QR code that serves as a secure digitised credential to prove your validity to fly. It could also verify your access allowances, such as baggage allowance, priority boarding, flight class status, vaccination status, and fast track security passes, for example.

Although across all forms of ID, physical passports will likely be the last to go fully digital, considerable progress has already been made in this space. In June 2022, American Airlines took off with their Mobile ID product app, working with Thales to eliminate the need for passengers to show physical IDs.

Whether through a mix of facial recognition, biometric checking or automation, this technology can make airport operations more efficient and secure for both staff and travellers. Looking towards arrival at your destination, your digital wallet could also store your travel insurance and GHIC card, too.

The enablers of smart cities

The future of digital identity is also intertwined with the development of smart cities. Smart cities are built on the idea of integrating digital and physical systems to make city living smoother and more convenient.

With the growing use of internet-connected device sensors in smart cities and online services and solutions, it has the potential to transform the way we live – with digital identities playing a big part of making that interconnected ecosystem a reality.

For example, a citizen’s smartphone can become a mobile driver’s license and ID card with all their digital credentials stored in their digital wallet, enhancing mobility and identity-checking processes across smart cities.

Digital identity infrastructure could also provide citizens with quicker and easier access to services and information, overhauling laborious processes that take longer than they should.

Take going to your local register office, council, or embassy for example – whether it’s to apply for a visa, register your child’s birth certificate, or submit an application for benefits or other financial support.

While these processes would usually require a host of supporting documentation and paperwork, a digital ID would speed up and simplify these tasks exponentially by holding all evidential proof and identity requirements in one place. These innovations can therefore make city and local government services more efficient and accessible for everyday citizens.

Digital ID in the financial sector

Digital identity technologies can also be applied to matters of finance and banking. Whether it’s applying for a mortgage, taking out a new mobile contract, or using contactless payments to use public transport, there are plenty of occasions where customers need to prove who they say they are and/or that they have the credit history or available funds to match.

In fact, there’s no longer a need to visit a bank branch in person, given the convenience of online banking and digital payment wallets for purchases on the go. This is a trend that will likely continue, as consumers increasingly apply for mortgages, open accounts, take up business loans, and manage personal finances purely through digital means.

However, while physical bank branches are reducing in number, the requirement to digitally confirm one’s identity is needed more than ever. But this verification process needs to be done safely and securely, without the risk of consumers’ sensitive data being compromised.

There is therefore a pressing need for technology to accommodate this digital trajectory so that individuals’ identities and attributes can be accurately certified without potentially sending data to insecure organisations.

Trusted digital identities provide several benefits, as already seen through the convenience of online banking apps, protecting users’ sensitive information with biometric-enabled online logins. Imagine you are signing a new rental agreement: you’d need to share various bank statements and utility bills, tell the landlord your annual salary, and share a relevant ID in the form of a passport or driver’s licence.

A QR code via a digital ID, on the other hand, could simply verify that you are an eligible candidate who can afford to rent property. This not only removes the hassle of unearthing and sharing endless reams of paperwork, but means only the essential information is shared to prove you have the funds and income to rent the property.

With ‘traditional’ forms of proving identity often being time consuming experiences for users, digital IDs are designed to solve these challenges. Not only is it a reliable, efficient, and trustworthy identity verification method for both individuals and organisations, but it also minimises the threat of identity theft given every digital ID has biometric requirements to authenticate them.

With more organisations adopting digital solutions as they undergo overarching technological transformations, digital identities will increasingly become an essential part of our everyday lives as we embrace the next era of identity.

Justin Walker is VP Digital Transformation at Thales. His previous article on the history of digital identity is available here.

Main image courtesy of iStockPhoto.com