Overall scheme for digital identity wallets
This is an excerpt from Finextra’s report, “The Future of Digital Identity 2022: Inclusive, secure, fit for purpose”.
Data taken from Oliver Wyman’s report “Digital Trust: How banks can secure our digital identity”
EU: Currently a coordinated effort to bring digital identity to the European Union. To reach the 80% adoption target, all EU Member States will need to have a digital identity system issued either by the public sector or by the private sector, which the States and certain private companies will have to accept.
Nordics: The four Nordic countries have established their individual digital identity schemes in different ways, they all have similar penetration rates – BankID from Norway with 74% penetration, BankID from Sweden with 78% penetration, NemID from Denmark with 85% penetration and Finland’s TUPAS with 87% penetration – and financial institutions had a big role to play in their success.
China: The model issued/owned by the Chinese government and issued by the private sector has seen the emergence of several digital identity systems from government, banks, payment providers and technology companies. China has a combined adoption rate of 60-75% for digital identity solutions.
Canada: Canada’s Verified.Me program was designed based on government guidelines and implemented by a partnership of seven major financial institutions. The diet currently has 30-50% adoption.
Estonia: Government issued and delivered E-estonia enables ‘smartID’ providers to access government services, public services, financial services, education, commerce and healthcare. E-estonia’s electronic ID card currently holds 99% adoption, while smart ID is adopted at 44% and mobile ID at 19%.
Belgium: The Itsme program in Belgium saw private sector delivery based on a government-led regulatory framework. 70% of the adult population have adopted the eIDAS-approved e-ID, with increased usage following the use of Itsme as the authentication mechanism for the Belgian app Covidsafe.be in 2021.
India: The Indian government issued and implemented the AADHAAR program is one of the strongest in the world with 91% adoption. Although initiated and run by the government, the private sector is now creating services on top of AADHAAR for payments, among other use cases.
Australia: The Australian Government Digital Identity is still an emerging initiative with 5-10% adoption. Although regulated by the government, the private sector has the opportunity to act as a provider of digital identity services within the ecosystem.
Korea: The Korean government-run digital identity system is currently only available to government officials. Program implementation will likely be outsourced to technology companies.
UNITED STATES: The US LOGIN.GOV program has less than 5% adoption. The system was designed to improve access to government services, with additional investment needed to transform it into a more sophisticated digital identity system. Private sector companies (including banks) are working on various digital identity models, but many doubt that a single national system is agreed upon.
South Africa: Digital identity schemes are currently being discussed with collaboration between the public and private sectors. The Secure Citizen program is a privately funded model focused on reducing fraud and promoting digital inclusion, but other programs with broader use cases are planned.
UK: Government guidance began to reappear in 2019, and the Department for Digital Culture, Media and Sport is leading the development of the trust framework which is expected to enter legislation in 2022/2023. The private sector is currently working with associations such as UK Finance and TISA to discuss their potential role in a future scheme. The UK currently has an adoption rate of less than 5% for digital identity systems.
Japan: The Japanese government recently issued an electronic ID card and plans to provide a smartphone version. The My Number card system currently has a 38% adoption rate.
Source: Oliver Wyman