This content was originally created by Axel Domeyer, Mike McCarthy, Simon Pfeiffer, and Gundbert Scherf at McKinsey & Co.
Many governments around the world have initiated digital identity programs, with few, including Estonia, Denmark, and Sweden, currently achieving almost universal adoption. Digital ID has the potential for modernizing public services in many areas, reducing costs and waiting times with online authentication as well as improving administrative efficiency. It can also help businesses streamline registration and authentication processes as well as secure digital payments for their customers.
For digital identity plans to succeed, governments need to focus on both supply and demand. McKinsey & Company identified six crucial steps to ensure availability and foster demand for Digital ID, starting with a choice of an operating model to ensuring the digital ID ability to exchange data with other systems, creating a regulator environment encouraging broad adoption, provide public and private sector high-value digital use cases, ensure a reliable and positive user experience, and fostering user trust by ensuring data privacy and security.