Regula, a developer of forensic devices and identity verification solutions, has released new findings from its study The New Imperative: Digital IDs. The study unveils how companies worldwide assess their revenue transformation after digital ID implementation. These findings also highlight the use cases where the digital ID adoption will have the most notable effect.
Forrester Consulting were commissioned by Regula to conduct the study. It underlines that most respondents, 89%, anticipate a positive impact on revenue from the adoption of digital IDs. Specifically, 32% of businesses anticipate:
- 20%-29% rise in revenue.
- 23% foresee a 10%-19% increase.
- 16% predict a boost of over 30%
- and 18% expect up to a 10% growth.
Interestingly, the Middle East seems to be more optimistic about adopting digital IDs. Only 4% of respondents in this region think that there will be no significant change in revenue. This is much lower than the global rate (10%) or the one in Europe, where 13% of businesses do not expect any change.
The most promising areas
The study indicates that the benefits from digital ID implementation will be noticeable and yield the fastest results in the following top five use cases:
- online financial transactions (46% of respondents globally);
- online account opening (38%);
- eCommerce transactions (33%);
- eGovernment services (32%);
- remote customer onboarding (31%).
The Forrester Consulting study suggests, “These results highlight a significant expectation that digital IDs will enhance efficiency, security, and user experience in sectors where identity verification plays a crucial role in transaction security and customer trust.”
Regional differences
For North America, the most significant effect is expected to be experienced with online financial transactions (51%). This is followed by online account opening (39%), remote customer onboarding (36%), and eCommerce transactions (35%). All of these rates are higher than the global. Interestingly, the region is rather more inclined to enhance age verification through digital IDs. 21% expect to see improvements in this use case (globally, this rate is 19%, and in the Middle East it is 14%).
In Europe, businesses share the global expectations. Thus, 44% anticipate seeing positive changes in online financial transactions, 38% – in online account opening, 36% – in eGovernment services. 30% – in remote customer onboarding, and 29% – in mobile device access. Europe seems to be more determined to improve eGovernment services. 36% of respondents here (compared to 32% globally) expect to see benefit from adopting digital IDs.
In the Middle East, the study respondents express expectations to see improvements in online financial transactions (44%). In addition to online account opening (35%), though these rates are slightly lower than global. More than the other regions, the Middle East expects to see positive changes in workplace access and remote work (30%, compared to 25% global and 24% in Europe and North America). Healthcare services access (26% compared to 15% global and 9% in Europe).
“Businesses are shifting their approach to identity verification. Once merely a legal requirement or a commodity, it has now become a technological advancement and a strategic imperative. Our study shows companies worldwide see transformative potential of digital IDs to boost revenue, enhance security, and improve user experience. As we innovate and deliver advanced identity verification solutions, we are dedicated to helping businesses unlock these benefits and thrive in the digital era,” says Ihar Kliashchou, Chief Technology Officer at Regula.
Enterprise Times: What this means for businesses
With the increasing sophistication of today’s online fraud campaigns, enterprises are looking for innovative digital verification methods. The challenge for businesses is that everything is moving into the digital realm. As a result, individual consumers need digital identities that identify the physical person and can be trusted. The Forrester Consulting study suggests that, while innovative digital verification methods are evolving, physical identity documents remain indispensable. The key will be ensuring reliable and trustworthy identity verification across various regulatory environments.
One of the barriers to the broader adoption of the Digital ID concept is the lack of a general legislative framework for this form of identity proofing. In particular, 74% of respondents underscore the necessity for global digital ID standards and legislation to ensure interoperability of such IDs across borders.
