Digital Identity Toolkit Section 4: Case Studies

Digital Identity Toolkit Section 4: Case studies

Published by the Social Purpose Team at Yoti June 2020 What is this Contents

Toolkit? Introduction 08 How people are using digital identities around the world 14

Government case studies 16

Digital identity is a relatively new can understand. We hope this Toolkit Government administration 21 but rapidly evolving sector that can can help close that gap. and will affect many aspects of our Addressing social challenges 22 everyday lives. This Toolkit has been designed to help you find everything you need Digital identities verify and to know about digital identity. Education 23 authenticate someone’s identity. Before producing it, we spoke with They can then be used to access individuals and non-profits around a wide range of services and the world to get a sense of what Health 24 opportunities, from health and they’d like to know about digital education services, voting and identities. Healthcare and food assistance 26 travelling, through to online shopping The audience for this Toolkit are and dating. Governments and Agriculture 28 the private sector are developing members of the public, non-profits, and implementing digital identity entrepreneurs, developers, journalists solutions, and they’re likely to become and academics who want to learn Lands and assets registration 30 increasingly common in the future. more about digital identity and how digital identities might be relevant to While there is already a lot of them in their lives or work. Digital ID solutions for refugees 32 information on this topic, much of it is in lengthy, technical reports that We hope you find this Toolkit helpful Yoti key in areas of crisis 34 hasn’t been collated into a simple and welcome your feedback about how it could be improved. format that non-technical people Private sector case studies 36

Retail 39

Travel 40

Online dating 42

Accessing financial services 45

Due diligence for regulators and financial institutions 49

Further reading 53

Digital Identity Toolkit - Section 3: Digital identity explained Summary

Section 3 described what a digital identity is, the different Public and private sector national identity use types of digital identity and why digital identity matters. This Section aims to bring everything we’ve shared so far India has the world’s largest national digital identity system, to life by giving real world examples of how governments, known as Aadhaar. It has over 1.2 billion users and relies charities, NGOs and the private sector use digital identities on biometric data for validation. Citizens use it to access in different ways around the world. government services, and financial providers can use it to undertake due diligence. It can be used to open a bank First we look at examples of how people use digital identities account, file tax returns, receive a pension or receive other to make their lives easier. Ella uses hers to enter nightclubs government subsidies. and office buildings, order online prescriptions and access a whole range of sites online, while Michael plans to relocate In Canada, SecureKey Concierge relies on authentication by abroad and uses his to open a local bank account and rent financial institutions to enable citizens to access dozens of an apartment. Rahul uses his to protect himself from fraud, government services. while Anya uses her digital identity to apply for financial assistance from the state. Digital identities are also used to improve government administration. In Japan, a cloud-based system enables national and local public agencies to seamlessly track and share information. In Singapore, the Moments of Life Accessing government services initiative bundles government services and information. It uses data to anticipate citizens’ specific needs as they reach Governments across the world are developing or deploying key life moments, such as marriage or the birth of a child. digital ID solutions which help citizens access public and, in some instances, private services. The UK’s GOV.UK Verify service enables citizens to access public services, while e-Estonia is renowned as the most highly-developed national ID card system in the world, covering over 90% of the population. It allows citizens to access any public e-service, reduces bureaucracy and speeds up the process of many daily tasks. It can be used for banking, signing documents, obtaining digital medical prescriptions or for business operations.

Digital Identity Toolkit - Section 4: Case studies 5 Addressing social challenges Private sector case studies Digital identity can address a whole range of social The private sector is also building solutions that aim to challenges. Many countries are now registering births give customers safe and efficient access to public and digitally. This is a critical type of digital identification as birth financial services. Examples include NemID in Denmark, registration is often the gateway to accessing services, such BankID in Norway and Sweden, and TUPAS in Finland. In as health and education, throughout life. iCivil in Burkina the Caribbean, Juvo’s Flow Lend solution enables Cable & Faso is an example of this. Wireless prepaid mobile customers to establish a financial (functional) identity, which gives customers access to airtime In India, Aadhaar is used in the education system to access credit. student scholarships, online courses and to track attendance. In Pakistan, computerised national identity cards are used for In the retail sector, Komplett, one of Europe’s biggest e-trade cash transfers, voting rights and opening bank accounts. companies, uses the Signicat digital identity platform for rapid online payments, and in China customers can pay for Digital identification is also improving health outcomes their online shopping at Alibaba’s or at KFC restaurants by globally. Botswana uses digital national identification scanning their fingerprints, or through facial recognition. numbers to track adherence and adverse reactions to antiretroviral therapy in patients with HIV across the The United Arab Emirates has released a digital smart wallet country’s decentralised health facilities. Thailand has a app to replace paper-based travel identity documents such digitised national population register and digital personal as passports, and the government is creating a ‘biometric identification numbers for the successful implementation border’ which will use facial recognition scanners to verify a of a universal coverage scheme, guaranteeing subsidised traveller’s identity. healthcare to all citizens. It is also used to track vaccinations, produce vital statistics that guide public health policy and to Financial institutions and regulators also use digital IDs to monitor health system performance. undertake due diligence. For example, Global Legal Entity Identifier Foundation is working to create a standardised Digital identification is used in the agricultural sector, too. global view of legal entities, and in Spain a consortium of Nigeria and Estonia have digitised agricultural subsidies, and banks uses a blockchain platform to create digital identities in Malaysia land registration is digitised and uses fingerprint designed to counter money laundering and boost KYC readers to reduce fraud. Farmers also have unique digital (know your customer) efforts. profiles which can be used to track market attendance and receive extension services. Uruguay has implemented a digital livestock traceability system. Uganda has created a web-based refugee information management system to issue ID cards to refugees so they can access special entitlements, including discounted education and healthcare. Jordan, Lebanon and Egypt use a digital refugee assistance information system to monitor and coordinate humanitarian aid. This is an inter-agency tool for tracking assistance, referrals and assessment information. Yoti has developed an offline system for smartphones and tablets that can assign a refugee or internally displaced person with a digital identity, which can then be used to access humanitarian services.

Digital Identity Toolkit - Section 4: Case studies 7 Introduction

Section 3 helped define digital programmeme to help them adjust Strong ID can also support financial on liquified petroleum gas (LPG) identity, shared some of the different to civilian life. Following iris scans, inclusion. In Kenya, bank, mobile cylinders with direct bank transfers. types of digital identity, and explained 110,000 received an ID card and a and micro-finance account holders why digital identity matters. This PIN, which they could use to collect are identified by their national Robust ID credentials can also section aims to bring more of this 13 monthly cash payments from over ID numbers. Negative and (more facilitate free movement of people information to life by giving you 8,000 airtime sales agents. In rural recently) positive credit histories across Africa’s numerous borders examples about how governments, areas, where distribution through are shared across the system. Non- without compromising security. The charities, NGOs and the private vendors proved difficult, mobile financial entities, such as utility 15 ECOWAS member states are taking sector use digital identities around the teams delivered cash using only iris companies, may also participate on a the lead. The community plans to world. scans for identification. reciprocal basis. The result has been launch a biometric ID card to serve a sharp fall in the number of non- as a travel document in the region. We’ll dip into specific case studies Digital identity systems also facilitate performing loans and an increase in Kenya, Uganda and Rwanda have also shortly, but this excerpt adapted from the delivery of emergency relief. the number of credit accounts and concluded an agreement to accept an Africa Policy Review article gives a The Dowa Emergency Cash Transfer information-based financial products. national ID credentials for travel good overview of digital identity uses: (DECT) programmeme in Malawi among the three countries. covered 11,000 rural families; it used Strong ID can save governments Africa has been at the forefront fingerprints for initial registration millions by cutting leakage and of innovative uses of ID. Since the and to verify payments at mobile corruption. As part of its civil service mid-1990s, South Africa has used ATMs in conjunction with smartcards. reform, Nigeria eliminated over fingerprint-based biometric ATMs, The programmeme improved 43,000 ‘ghost’ workers from the smartcards and bank accounts to recipients’ nutritional and health public payroll following an audit using deliver pensions and social grants, status, but highlighted the cost of biometric identification in 2011; this is including to locations with limited creating a special system for each reported to have saved the country connectivity. The system of social programmeme in the absence of a over $60 million. One of the biggest grants now covers some 16.5 million proper national ID system. Digital examples of using an advanced ID people. In the Democratic Republic identity systems underpin emergency system to underpin subsidy reform of Congo, iris technology facilitated relief in several other countries, comes from India, which eliminated disarmament, demobilisation including programmemes for refugees around 40 million ‘ghost’ beneficiaries and reintegration. Ex-combatants in northern Kenya, for example. when it replaced its market subsidy were enrolled in a cash transfer

Adapted from an African Policy Review - http://africapolicyreview.com/id-for-development-opportunities-and-challenges-for-africa

Digital Identity Toolkit - Section 4: Case studies 9 For lovers of lists, here are some examples of The different ways digital identity can be used how you can use a digital identity: in different sectors:

• Allow brands of your choice to have access to your personal data so they can market to you. Social • Give charities permission to claim tax relief on your Regulatory donations. Good • Allow your children to enter a children-only chat room which maintains a strict age restriction policy, verified by a digital ID. • Instant know your customer (KYC) • Identity for Everyone - Including - With retained anonymity the one billion people unable to • Request a student ID card to get discounts on prove who they are products and services. • Anti-Money-Laundering (AML) - “One person, one identity” • Financial Inclusion - For the two • Prove that you’re the person entitled to access simplifies tracking billion unbanked and three billion who live one less that $2.50 per chargeable services from third-party providers. • Crime & Terrorism Prevention - day • Log in to your university network and student web With widely-distributed anonymous alert frameworks • Fraud-proof electronic voting - portals. Safe, speedy and fair voting - from • Log in to commercial cloud services offered by home providers.

• Digitally sign a credit agreement or direct debit. Personal Healthcare • Anonymously respond to a customer survey. Freedom • Prove your identity when making a formal offer to purchase property. • Patient and health record • Safe National Identification - • Digitally sign a tax declaration. identification - Fewer unnecessary Findable, checkable identity with • Register a business. deaths and less waste no Big Brother • Data integration and record • Decentralised Social Networks • Undertake a know your customer (KYC) due diligence sharing - Enabling precision - Privacy and real self-expression check for financial services. medicine and new machine- without the need for Facebook or learned cures Linkedin

Consumer Corporates Protection

• Safer Peer-to-Peer Commerce - • Universal Data De-identification Safe, simplified, person-to-person - The only true breach and trading compliance protection. • Data Cleansing - Eliminate wrongful disclosure, waste and Adapted from Private Sector Digital Identities in Emerging Markets by Caribou Digital Publishing and Omidyar Network. https://www.cariboudigital. embarassment net/wp-content/uploads/2019/01/Caribou-Digitial-Omidyar-Network-Private-Sector-Digital-Identity-In-Emerging-Markets.pdf Diagram is taken from TrigID - https://trigid.org

Digital Identity Toolkit - Section 4: Case studies 11 Mechanism Case Description Key Factors Mechanism Case Description Key Factors

India The unique Aadhaar number has been unique ID Estonia The eID and X-Road systems—which provide digitisation seeded into databases and used to digital authentication digital authentication and signatures, and unique ID authenticate beneficiaries for dozens of social interoperability/ facilitate data exchange—save an estimated interoperability/ programmes, resulting in savings, potentially integration 2 percent of GDP per year by reducing integration in the billions of dollars, from removing fakes identity related transaction costs and digital authentication and duplicates. facilitating online services.

1a. Reducing fraud unique ID Integration between the national ID and voter unique ID Pakistan The NADRA database was used to eliminate South Africa and leakage: duplicates and ineligible beneficiaries for interoperability/ registration contributed to some of the falling interoperability/ Ghosts, duplicates emergency relief (Watan Card and IDPs), integration costs of elections (from US$250 million in 1994 integration saving an estimated US$378 million. 2b. Reducing to US$32 million in 2009) administrative costs: Uganda Verifying the identities of civil servants against unique ID Malawi Integration between the national ID and unique ID the national ID database reportedly saved interoperability/ Redundancy voter registration eliminated the need for a interoperability/ the government US$6.9 million in less than a integration separate voter ID card, saving approximately integration year by removing some 4,664 ghost workers US$44 million ahead of the 2019 elections. from the public payroll. Argentina Integration between tax databases and unique ID Argentina Using its SINTyS system to link databases at unique ID other registers (e.g. property and vehicles) interoperability/ the federal, provincial, and local levels, the interoperability/ via the SINTyS system improved tax audits, integration government identified inclusion errors in its integration generating approximately US$44 million in pension and social programme databases, additional revenue from a reduction in tax saving at least US$300 since implementation, fraud. or nearly eight times the cost of its World NADRA’s cross-checks of taxpayers against unique ID Bank financing. Pakistan a variety of databases identified some 3.6 interoperability/ 1b. Reducing fraud The national ID number was used in a cash unique ID 3. Increasing tax million potential taxpayers who were not integration Thailand and leakage: transfer programme for the poor to cross- interoperability/ collection filing taxes; had this information been used Ineligible check the eligibility of beneficiaries against integration to increase payments by these individuals, it tax, occupational, and other databases, could have saved an estimated US$1 billion saving between US$29.7–59.4 million. within a few months.

Pakistan The NADRA database was used to eliminate unique ID India The government will require Aadhaar unique ID ineligible beneficiaries for the initial targeting numbers when filing taxes in order to weed interoperability/ of the BISP cash transfer programme and the out duplicate or fake tax ID numbers (PANs), integration government’s Zakat programme, saving an commonly used for money laundering and tax estimated US$52.9 million. evasion.

India Biometric authentication using a functional digitisation Peru RENIEC has earned approximately US$45 unique ID 1c. Reducing fraud smart card in the State of Andhra Pradesh digital authentication million in revenue annually by charging fees interoperability/ reduced leakage in NREGA benefits by for verification and other services, while integration and leakage: approximately 12.7 percentage points, and in ensuring that services remain free for the digital authentication Impersonation pension benefits (SSP) by approximately 2.8 4. Increasing tax poor. percentage points. collection Pakistan NADRA charges both public and private unique ID Slovenia An interoperability platform to verify identity digitisation sector users to verify identities against its interoperability/ information for safety nets across 50+ interoperability/ database; for example, it earns approximately integration databases has saved the Ministry of Social integration US$9.3 million per year from verifying the digital authentication 2a. Reducing Affairs approximately US$14.5 million per identity of BISP beneficiaries. administrative costs: year. Transactions Projections estimate that a secure, digital digitisation United States * Note: All savings figures should be taken as approximations; see full descriptions in text for data sources, limitations, and caveats identity credential would save the IRS digital authentication between US$91– 318 million per year by reducing authentication costs and facilitating online services.

Adapted from Public Sector Savings and Revenue from Identification Systems by the World Bank - http://pubdocs.worldbank.org/ en/745871522848339938/PublicSectorSavingsandRevenueIDSystems-Web.pdf

Digital Identity Toolkit - Section 4: Case studies 13 How people are Michael

Michael is relocating abroad to start a new job. He needs using digital an address in the new country in order to open a local bank account. But to rent an apartment, he needs a local bank account. With a globally recognized digital identity, he can prove who he is and provide his credit history and identities around verified personal information from his previous posting. the world

Rahul

Rahul was a victim of a data breach at a credit rating The following case studies helpfully demonstrate how people agency. Fraudsters stole all the data he used to prove can use digital identities to reduce the burden of proof, who he was. That data was used by others to create new emigrate, reduce fraud, improve commercial interactions and accounts, borrow money, and in doing so undermine his support inclusion: credit rating. Now he has a digital identity and the data required to assess his credit worthiness for a loan is no longer stored in one place. Instead, with his permission, different elements are presented on an as-needed basis.

Ella

Ella employs her digital identity in different ways. At bars, she uses it to prove she’s old enough to enter, without Anya having to show a driver’s license that would reveal her name, addess, and date of birth. She uses her digital As a mother with limited income, Anya is entitled to identity to enter her office building, instead of a staff pass, financial assistance from the state. Previously, she was and to order her prescription medication online. But she unable to access this because she didn’t have an official can also use her digital identity to sign up to loyalty and identity recognized by state institutions. Since signing up rewards programmes, subscribe to magazines and dating for a digital identity, however, Anya can claim the benefits sites, create social media profiles, and share her favorite directly. The funds are applied to a prepaid debit card music. It is Ella’s decision about where to use her digital secured by her fingerprint. She uses this digital identity to identity, which data to make available, and to whom. open her own bank account and register with a doctor.

Adapted from ‘Digital Identity, Restoring Trust in a Digital World’ by Mastercard. https://www.mastercard.us/content/dam/mccom/en-us/issuers/ digital-identity/digital-identity-restoring-trust-in-a-digital-world-final-share-corrected.pdf

Digital Identity Toolkit - Section 4: Case studies 15 Estonia: e-Estonia Estonia has by far the most highly- Estonia took advantage of new Government developed national ID card system digital technology just as it regained in the world. The mandatory national independence; a bit like a start-up card provides digital access to all not having to worry about years of of Estonia’s secure e-services. The legacy infrastructure. The system case studies digital identity system of Estonia, was designed from the ground up to called e-Estonia, introduced in 2002, deliver efficiencies for government currently has a coverage close to 94% and to allay the understandable of a total population of 1.3 million. concerns of its citizens. The e‑Estonia solution combines both photo and All citizens carry an electronic ID card biometric aspects, with a built-in chip with embedded files which make containing two certificates, one for United Kingdom: GOV.UK Verify use of strong 2048-bit public key verifying identity and the other for a encryption. The system is built on After considerable debate and research, in 2016 the UK digital signature, each protected by a secure, efficient and transparent government launched a service called GOV.UK Verify, which a four-digit personal identification system that saves money and time is an identity system that has no physical card and no single number (PIN). and can be used both online and in central population register. person. In 2007, a mobile-ID solution e-Estonia can be used to access The government sets rules about background checks that (dependent on a SIM card) was any public e-service, reducing identity providers have to perform before they can grant introduced, which allows citizens bureaucracy and speeding up the an account to a GOV.UK user, and the government audits to use mobile phones as a form of process of routine tasks. It can be the private sector companies who provide the checks to digital identity without using their used for banking, signing documents, ensure their compliance with these rules. While the rules electronic identity card. obtaining digital medical prescriptions are comprehensive, they have been intentionally authored or for business operations. Estonia can now claim 1st place as the to allow companies to use different methods to establish most digitally advanced government Watch this video to find out more whether an applicant is who they claim to be. This is in the world as its citizens reap about how e-Estonia works: particularly important since some potential registrants don’t significant benefits, ranging from ease have much of a credit history or other official activity on of access to governmental single sign- file – so-called thin-file individuals – and thus require on websites to rapid credit approvals Estonian e-Identity alternative methods of verification. and near one-click tax filing. cornerstone - state issued The government is actively trying to encourage more national ID-card companies to enter the market as identity providers; it wants this market to be diverse because it wants as many people as possible to successfully get an account to avoid a slower manual process of paper and in-person verification.

Adapted from Private Sector Digital Identities in Emerging Markets by Caribou Digital Publishing and Omidyar Network - https://www.cariboudigi- Adapted from Who Are You? Defining Digital Identity and Authentication Technology by Thomson Reuters - https://blogs.thomsonreuters.com/ tal.net/wp-content/uploads/2019/01/Caribou-Digitial-Omidyar-Network-Private-Sector-Digital-Identity-In-Emerging-Markets.pdf answerson/digital-identity-authentication-technologies Adapted from the Digital Identity Roadmap Guide by International Telecommunication Union (ITU) - https://www.itu.int/en/ITU-D/ICT-Applica- tions/Documents/Guides/ITU_eID4D_DIGITAL%20IDENTITY_ROAD_MAP_GUIDE_FINAL_Under%20Review_Until-05-10-2018.pdf

Digital Identity Toolkit - Section 4: Case studies 17 India: Aadhaar India’s Aadhaar is a unique model While Aadhaar is a state-based Some examples of how Aadhaar is being used include: of state-based identity as it creates programmeme, its architects envision a digital identity that is separated that its unique identity database can • Verifying filed income tax returns online. from legal status or citizenship. This support private sector involvement. It • Applying for a passport online and receiving it in just greatly simplifies enrolment and has is hoped that it will contribute towards 10 days. contributed to its wide adoption. It the concept of the Indian Stack, a now has over 1.2 billion users. ‘unified, integrated layer of digital • Rapidly opening a bank account. tools and services leveraging Aadhaar The Unique Identification Authority on which the private sector can build • Timely pension payments. of India (UIDAI) is responsible customer-facing solutions’. • Receiving a digital life certificate (this speeds up for Aadhaar enrolment and receiving a pension and avoids physical trips to the authentication. Aadhaar provides Private sector use of Aadhaar remains bank). users with a digital ID, authenticated limited but is growing. Financial online, that lasts a lifetime. It providers are starting to use it for • Accepted by the Securities and Exchange Board of is essentially a 12-digit number KYC (Know Your Customer) due India for stock investments. randomly generated after biometric diligence services. Research from data (fingerprint and iris) is verified. It Microsave suggests it has saved over • Receiving government-related subsidies, such as began life in 2010, and any individual 100 billion rupees (approximately LPG subsidies, straight to a bank account without who resides in India can voluntarily $1.5bn) from e-KYC, which relies on registering for each subsidy separately. enrol to obtain an Aadhaar number. using the customer’s 12-digit Aadhaar • Easier voting. number to verify identity. Microsoft The Indian government aims to issue is trying to integrate its Skype service unique identification numbers to all with Aadhaar in an effort to provide residents of India, and will use these verified digital communications to facilitate inclusion and deliver between individuals and government services, benefits and subsidies to (for example, users could self-verify citizens. The scheme has already using biometrics and connect to the resulted in huge savings, including Aadhaar database to have an official over $1.5 billion in one year from video chat with a government agent). ‘The Indian government aims to issue unique the LPG fuel subsidy programmeme identification numbers to all residents of India, alone. and will use these to facilitate inclusion, deliver services and benefits and subsidies to citizens. The scheme has already resulted in huge savings’

Tomorrow Makers

Adapted from Private Sector Digital Identities in Emerging Markets by Caribou Digital Publishing and Omidyar Network - https://www.cariboudigital.net/wp-content/uploads/2019/01/Caribou-Digitial-Omidyar-Network-Private-Sector-Digital-Identity-In-Emerging-Markets.pdf and the Digital Aadapted from Tomorrow Makers: 7 Benefits of Aadhaar Card - https://www.tomorrowmakers.com/tax-planning/7-benefits-aadhaar-card-listicle Identity Roadmap Guide by the ITU - https://www.itu.int/en/ITU-D/ICT-Applications/Documents/Guides/ITU_eID4D_DIGITAL%20IDENTITY_ ROAD_MAP_GUIDE_FINAL_Under%20Review_Until-05-10-2018.pdf

Digital Identity Toolkit - Section 4: Case studies 19 Canada: SecureKey Concierge In Canada, a scheme managed by SecureKey enables customers from multiple financial institutions to use Government their existing credentials to access dozens of Canadian government services online. SecureKey Concierge is an authentication network which administration conveniently connects people to critical online services using banking credentials they already have and trust. This has helped encourage wide adoption. SecureKey Concierge is configured to be ‘triple-blind’, ensuring that no party receives sensitive or personal information from other parties.

SecureKey Concierge is based on a single identity broker Japan system and a set of identity providers (five of the country’s major banks). It provides a method of identification and All government information systems in Japan use a cloud- authentication to access public services, based on a ‘bring based public certification service to verify identities and your own credentials’ model, where users can use identity allow seamless access between systems (with the exception credentials that already exist and that they already use. of some with special requirements). Public agencies at the national and local levels can track and share information, In 2014, two years after the launch of the initiative, the avoiding problems such as inaccurate payments or number of digital identities had reached one million. duplication of administrative processes, and helping smooth operations by breaking down vertical divisions within agencies. These efforts have also reduced operational costs and helped improve the security and disaster resilience of governmental and citizen data.

Singapore The Smart Nation and Digital Government Office is currently developing its Moments of Life initiative, an intergovernmental framework that bundles government services and information. It uses data to anticipate citizens’ specific needs as they reach key life moments, such as marriage or the birth of a child. • Since its release at the end of June 2018, the Moments of Life app has been well received by citizens. • In its first three months, the app was downloaded more than 10,000 times. • Over 500 parents have used the new online birth registration feature to register the birth of their child. • The app now includes a feature that allows parents to search for institutions that accept the use of the child development account funds.

Adapted from the Digital Identity Roadmap Guide by ITU - https://www.itu.int/en/ITU-D/ICT-Applications/Documents/Guides/ITU_eID4D_DIGI- Adapted from Digital identities, Advancing Digital Societies in Asia Pacific - https://www.gsmaintelligence.com/research/?file=9a75da0cc2c35b- TAL%20IDENTITY_ROAD_MAP_GUIDE_FINAL_Under%20Review_Until-05-10-2018.pdf 17f313bd5d4dbcffb6&download and from the Smart Nation website - https://www.smartnation.sg/what-is-smart-nation/initiatives/Strategic-Nation- al-Projects/moments-of-life

Digital Identity Toolkit - Section 4: Case studies 21 Addressing social Education challenges

Birth registration Burkina Faso: iCivil In Burkina Faso over 2 million children under the age of 18 remain unregistered. iCivil has been developed ‘India’s Aadhaar is now being used to address to simplify and digitise the birth registration process to enable more children to be registered at more locations several issues in the education sector. It can be around the country. iCivil has produced a hospital bracelet, used to access student scholarships and track manufactured with a unique bubble tag and QR code, which attendance. It is mandatory to use Aadhaar to is attached to newborn babies by a health professional. access online education courses and has helped Courtesy of the iCivil mobile app, the QR code and unique bubble tag can be scanned, bringing up a digital to reveal 80,000 ‘ghost’ teachers at higher registration form where the birth details can be entered and education institutes (teachers who are registered updated. The registration details are then forwarded to the faculty members but don’t actually teach).’ national birth registry for verification and, once verified and registration is complete, the birth certificate can be collected by presenting the iCivil bracelet. Times of India

Adapted from Mobile for Development: Digital Identity Case Studies from Africa and Latin America by GSMA - https://www.gsma.com/mobilefor- Adapted from Aadhaar Helped Identify 80,000 ‘Ghost’ Teachers in Higher Education in The Times of India - https://timesofindia.indiatimes.com/ development/blog-2/digital-identity-case-studies-from-africa-and-latin-america india/aadhaar-helped-identify-80000-ghost-teachers-in-higher-education-institutions/articleshow/62383881.cms

Digital Identity Toolkit - Section 4: Case studies 23 Thailand: National ID as a delivery system for Health universal health coverage Thailand’s foundational identification system has been used to increase access to healthcare and enhance the efficiency of health systems in several ways. The most significant contribution is the instrumental role that the national population register and PID – a lifetime unique identifier – played in enabling the government to successfully implement its universal coverage scheme (UCS) Botswana: Improving HIV treatment with in 2001, guaranteeing subsidised healthcare to all citizens. national ID numbers Called ‘one of the most ambitious healthcare reforms ever Among other health-related uses, Botswana’s national undertaken in a developing country’, the UCS reduced the ID number has been integrated into the country’s uninsured population from 29% to 5% in less than two years. flagship antiretroviral therapy (ART) programmeme. This The foundational identification system also plays several programmeme, called Masa (or ‘new dawn’) was launched other roles, from tracking vaccinations and producing vital in 2001/2002 to tackle the country’s HIV/AIDS epidemic by statistics that guide public health policy to monitoring health providing comprehensive and free treatment to all citizens in system performance. As Thailand’s health system moves need. When Masa began, patient records were handwritten from paper-based to electronic health records, the Ministry paper-based files, which made it difficult for providers to of Public Health and the National Health Security Office are track patients’ adherence and adverse reactions to ART over exploring how the PID could be used to facilitate access to time and across the country’s decentralised health facilities. those records anywhere across Thailand while maintaining To improve outcomes and reduce the administrative burden privacy, data protection and ethical standards. of the programmeme, Masa was transitioned to a computer- based patient management system, and the Omang number has been gradually adopted as a unique patient identifier throughout Botswana’s ART facilities and related testing and treatment programmemes. Integration with the national ID system has improved administration and treatment, and has also facilitated data collection necessary to strengthen the programmeme and assess its impact. ‘Integration with the national ID system (Botswana) has improved administration and treatment, and has also facilitated data collection necessary to strengthen the programmeme and assess its impact.’

The Role of Digital Identification in Healthcare

Adapted from The Role of Digital Identification in Healthcare: The Emerging Use Cases by Identification for Development, World Bank - http://pubdocs.worldbank.org/en/595741519657604541/DigitalIdentification-HealthcareReportFinal.pdf.

Digital Identity Toolkit - Section 4: Case studies 25 Healthcare and food assistance

Everest has built a decentralised platform made up of three components: EverID, a digital biometric identity system to store and confirm user identity data; EverWallet, a multi- currency digital wallet with built-in document storage; and EverChain, a blockchain-based transaction system. The platform is available to all people from birth until death. It does not require a mobile device to join, is encrypted to protect users’ privacy and is interoperable with other systems. Institutions, corporations and government organisations can effectively, cheaply and quickly validate user identity, at scale. Value can then be transferred securely to the correct recipient with reduced transaction costs, lower losses from leakage, and innovations in service and value transfer. It has many potential applications, one of which is for identity verification for healthcare and food assistance. Access to healthcare and the distribution of food assistance are both examples of a need for an infallible verification method that has to be concluded quickly and without the need to own a mobile device (or laptop) to receive the benefit. Everest users are validated against the EverID blockchain, which can include the retrieval of records and status to ensure accuracy. Once the user has been verified, they will be able to receive the service or assistance. Institutions, government organisations and commercial enterprises are often risk-averse. Reducing risk through verification allows for unprecedented economic growth opportunities in emerging markets.

Adapted from Everest Digital ID Whitepaper - https://icosbull.com/eng/ico/everid/whitepaper

Digital Identity Toolkit - Section 4: Case studies 27 Estonia: e-Estonia tackles agricultural subsidies Estonia is unique in terms of its For Estonia’s farmers, this means Agriculture adoption of digital governance. that their agricultural subsidies are The government has brought 99 integrated with both the e-ID and percent of public services online X-Road, the national electronic and has enabled online identity infrastructure which integrates the verification and authentication nation’s various databases and via an interoperability platform registries. This allows farmers applying called the X-Road, connecting for agricultural subsidies to apply Nigeria: Lessons from GES Subsidy Pilot various functional registries and online using data that they have In 2014, the government of Nigeria In addition to the challenges the country’s foundational, digital already provided to the government, supported a pilot project to digitize associated with the lack of a ID system. Ninety-eight percent as the government committed to agricultural subsidies under the foundational ID system, there was of Estonians have an eID and can never asking an individual to supply national Growth Enhancement also limited mobile connectivity and access various public and private information multiple times that had Scheme (GES). The intention was electricity in rural areas targeted by services and transactions, and even already been recorded in an X-Road to tackle corruption and prevent the subsidy programme, requiring the vote remotely from anywhere in connected database. As a result, fraud that kept eligible farmers from pilot to develop a specialized off-line, the world. In addition, through the farmers now spend 45 minutes on receiving their intended subsidies solar-powered point-of-sale device e-Residency programme, anyone subsidy applications, down from 300 under the scheme. At the time, for registering and authenticating with a government-issued ID from minutes using the previous paper- Nigeria did not have a robust, high- farmers. The programme also relied around the world can apply to based system. This also reduced coverage foundational ID system to on facial recognition, which did not become an Estonian e-resident and the delays in paying out subsidies identify recipients. Although many work as effectively as expected at start a company, conduct financial in Estonia. In addition, farmers can farmers had a voter ID, the voter the time: the color tones of farmers’ transactions, and file taxes remotely also register land and cattle remotely identification number was not held skin were not different enough to be online, even if they have never visited online and access detailed geographic by all potential beneficiaries and was recognized by the available software the country. and soil-related information through not unique, as duplicate numbers had in some cases, and in other cases the X-Road. been issued during the registration software was confused by the patterns process. Therefore, the pilot system in the background (often, farmers’ accepted 10 different forms of ID photos were taken against a cinder for enrollment. Despite that, about block, which was highly textured). 14 percent of farmers did not have The accuracy and capabilities of facial a qualifying identity document. For recognition software has improved these farmers, the pilot created a since 2014; however, it is important system of sponsorship where one to recognize that not all biometrics person could vouch for the identities work in all contexts, and that farmers of up to four other people. The in rural areas can present unique pilot successfully registered 500,000 challenges. Challenges with mobile farmers, and 85 percent redeemed connectivity, electricity access, and their vouchers. Despite this success, lack of a universal foundational ID there was significant extra time and are unfortunately still present in many cost devoted to work-arounds due to rural areas, especially in developing the lack of a foundational ID system countries, and will have to be taken that could assure the unique identity into account when considering of each farmer. any application of digital IDs for agriculture.

Adapted from The Role of Digital Identification in Agriculture: Emerging Applications by Identification for Development by the World Bank Group - http://documents.worldbank.org/curated/en/655951545382527665/pdf/Digital-ID-Agriculture-Web12192018.pdf

Digital Identity Toolkit - Section 4: Case studies 29 Uruguay: A global exporter Malaysia: National ID for Lands and assets through livestock traceability farmer profiles and extension Uruguay has become a leading services exporter of meat since implementing In Malaysia, due to the ubiquity of a livestock traceability system. The the myKad ID card and its open registration setup of the system was initially technical design, each government motivated by an outbreak of foot- agency can build its own applications and-mouth disease in 2000 and on top of the national ID system. 2001, which led to the overhaul of This allows the government agency the paper-based system that had to benefit from the fact that there been in place for the previous 30 is already a foundational ID system years. The government financed the available to verify the unique identity Malaysia: ID to address title fraud traceability system, creating a sense of the individual, while building a of pride in what was recognized by functional ID specific to agency Malaysia has a robust foundational ID system. The original, farmers as a publicly owned asset—a needs on top of this foundation. In paper-based system (which was started in 1949) was factor that supported uptake and the agricultural sector, the Federal eventually replaced with a digital ID system called the broad participation. Participation in Agricultural Marketing Authority MyKad. The MyKad system leverages a smart card, which the system was initially voluntary but (FAMA) introduced two identity- includes a picture and a chip that contain the holder’s became compulsory after a successful related applications derived from fingerprint biometrics. pilot. The cattle are associated with MyKad: one specifically for farmers, each individual farmer, based on his/ The country also performs well for land administration e-Pasartani, and one for fishermen. her national ID. When a farmer needs globally. It ranks 42 out of 190 jurisdictions in the ease of These applications are used to record to identify new calves, he/she can registering property in the World Bank’s annual Doing data and information on participation request tags online or by phone, and Business rankings, a significant improvement from in farmers’ markets throughout the the tags are delivered within 24 hours, 2010, when the country was only ranked 86th. The stark country. The applications use MyKad along with a printed form including improvement was brought on through concerted effort on as a platform for storing data and the farmer’s name, ID number, many fronts, including an overhaul of the business processes information on the participants, the name of the business, and the involved in land registration. including personal details and numbers of the tags being sent. The business licenses. It is connected As part of this overhaul, the government of Malaysia farmer only has to add the gender, to Famaxchange, an agricultural introduced the obligatory use of the MyKad for land breed, and age of the animals, plus marketing information portal registration and installed fingerprint readers as a means of the date on which the ear tags were developed by FAMA to improve reducing fraud and forgery. The fingerprint readers allow attached, and return the paperwork the efficiency and effectiveness of anyone who wants to register a piece of land to authenticate by mail, where the form is scanned, information dissemination to the their identity using their MyKad smart card. In this case, the and the information included in the target groups. land registration system uses the foundational ID system to electronic system. assure that the individual is who they claim to be, reducing land disputes and loss of land rights that resulted from fraud in the past.

Digital Identity Toolkit - Section 4: Case studies 31 Jordan, Lebanon and Egypt These countries extensively use the refugee assistance Digital ID information system (RAIS) to monitor and coordinate humanitarian aid. This system is an inter-agency tool for tracking assistance, referrals and assessment information. It enables UNHCR and partners to share assistance records, solutions for cross-check beneficiaries lists and host different types of data. RAIS is synchronised with proGres, from which refugee data from all UNHCR field offices is updated daily. Today, UNHCR and the World Food Programmeme (WFP) provide refugees direct assistance to beneficiaries and manage other NGOs that use the system. The largest implementation is in Lebanon, where more than 1 million refugees now use either WFP’s smartcard to buy goods at participating retailers and/or UNHCR-backed ATM cards to withdraw money instead of receiving physical goods. However, there is currently no clear legal and Uganda regulatory framework for e-money transactions. Uganda hosts over 1 million refugees, Identification and Registration Agency In Egypt, WFP has adopted the Carrefour supermarket primarily from South Sudan and the (NIRA), which covers all nationals and store card as a delivery mechanism. In Jordan, refugees can DRC. Uganda is a party to the 1951 foreign residents. withdraw their cash entitlement from UNHCR in branches Refugee Convention and is widely- of the Cairo Amman Bank by placing their eye against an recognised as one of the most Since assuming responsibility for IrisGuard scanner – no card is required. The success of this generous host states for refugees in refugee registration, the government programmeme has encouraged WFP to pilot the use of iris the world. The government provides is in the process of registering the recognition technology so refugees can purchase food in freedom of movement, access to 1 million refugees in the country participating supermarkets. services and allocates plots of land for with RIMS. The refugee ID card shelter and agricultural production. and certificates issued are widely- recognised and allow access to all In terms of refugee status the services that a non-national determination and registration, is entitled to. In 2017, when the the UN Refugee Agency (UNHCR) government made it mandatory for all and the government’s Office of the SIM cards to be linked to a national Prime Minister (OPM) used UNHCR’s ID number, the refugee ID number proGres software until 2014, when was accepted. Likewise, the refugee the OPM introduced its own system, ID card is accepted for opening a the refugee information management bank account and enables refugees to system (RIMS). RIMS is a web-based access a range of special entitlements platform that includes registration, for refugees, including discounted biometric capture, case management education and healthcare. While there and card production. Although RIMS have been some challenges with the captures two fingerprints, it does not implementation of RIMS, Uganda’s operate a biometric deduplication progressive policy and practices with or authentication and is not linked regards to providing ID to refugees or interoperable with the national ID and asylum seekers ensures that these system, maintained by the National IDs are widely recognised.

Adapted from G20 Digital Onboarding by The World Bank Group and Global Partnership for Financial Inclusion - http://documents.worldbank. org/curated/en/362991536649062411/pdf/129861WP-10-9-2018-17-26-21-GDigitalIdentityOnboardingReportlowres.pdf

Digital Identity Toolkit - Section 4: Case studies 33 Global

Yoti Keys in Areas of Crisis Pakistan: Potential of ID for empowering women and girls Yoti Keys is our simple, open source, offline solution for humanitarian The following case study describes most common expenditure was on organisations working in remote locations where they need a way of identifying how digital identification can health (15 percent). In addition, when the people they are working with, whether that be a hospital needing to ID facilitate cash payments to women, a woman acquires a Computerised patients, or a cash giving programme needing to verify the identity of recipients empowering them to take care of National Identity Card (CNIC) she before handing over payments. their own needs, and those of their gets other citizenship rights (voting, families. the option to open a bank account, and the like). From 2009 to 2012, Giving cash directly to women CNIC enrolment of female citizens Refugees or internally displaced persons travel to safety but increases their bargaining within jumped by 94 percent, largely 1 often have no identity documents or other ways of proving the family, and when women have because of collaboration with BISP. who they are. This makes it difficult for organisations to allow greater power to make decisions, access to services. Traditionally, paper-based documents are the household increases its After receiving BISP cash transfers, issued for this purpose. These documents can pose a risk to investment in human development. the beneficiaries felt more people as they often disclose sensitive information about the Recent evaluations and beneficiary empowered: about 58 percent of person and can be read by anyone. assessments of the Benazir Income the women said they could spend Support Programme (BISP) endorse money as they wanted, 75 percent felt this gender-differentiated impact in their importance in the family had Pakistan. increased, 62 percent were making more family decisions, and 72 percent 2 With just a smartphone and a tablet we would be able to Data from the Pakistan Social and reported having more confidence. assign someone their identity and issue them with a Yoti Key. Living Standards Measurement survey Evaluation results also exhibit that 64 This is both rugged and private and can store the details show that when Pakistani women percent of the female beneficiaries about the person’s identity. Additional functionality and have more decision-making power, report that they retain control over information can be stored including medical information and households spend significantly how the cash transfers are spent, banking facilities. more on things that women value, mainly toward increasing consumption including nutrition and child and reducing poverty. The BISP education (particularly for girls), and transfer is also associated with higher that women make greater use of engagement with formal institutions: reproductive health services. A recent BISP beneficiaries are more likely than 3 This key could then be used to access Government, NGO study showed that 78 percent of the non-beneficiaries to report that they or charity services and follow the person through the cycle women receiving cash transfers used would vote. of repatriation or resettlement. The Yoti Key is only able to their cash for food, while the next be accessed by organisations with the correct privileges and cryptographic keys. All data is encrypted when being transferred too and stored on the Yoti Key.

4 After resettlement the person’s Yoti Key ID can migrate with them to become a traditional Yoti on their Mobile. This could then facilitate access to traditional identity documentation. Adapted from from Private Sector Economic Impacts ID Systems by Identification for Development (ID4D), World Bank Group - http://pubdocs. worldbank.org/en/219201522848336907/PrivateSectorEconomicImpactsIDSystems-Web.pdf

35 Finland: TUPAS TUPAS is a digital identity provider (IDP) that has created Private sector a distributed ID system to connect IDPs to online service providers (RP) to help users access a range of private and public services, including financial services. case studies TUPAS is an identity system in which over 10 banks act as IDPs. Individuals can log into a wide range of services with credentials from their bank. The users’ full names and national ID numbers are transferred from the IDP to the RP.

The private sector is also building solutions to help users Identity Providers: Case study access services. A few examples of private sector initiatives A set of banks act as IDPs in the TUPAS system, providing follow in this section. individuals with access to over 180 public and private services. Denmark: NemID • The Federation of Finnish Financial Services drove NemID is an electronic ID, digital signature and secure the creation of a bank identity system called TUPAS, email solution that provides individuals access to public designed to improve user access to online services. and private services. The government tendered the system to the private sector. Users use a common NemID login • The RPs pay for the service (initiation fees, monthly and password, as well as unique one-time passwords to fees and fees for set transaction volumes). Users may authenticate themselves to online services. User attributes also be charged on a monthly basis, depending on are stored in a central registry. their relationship with their bank. • While a group of telecoms in Finland offer a competing service, as of February 2016, 95% of all online service logins were processed through TUPAS. Only 2% of online service logins were processed through the competing system. This may be due to the government’s strong adoption of TUPAS, citizen loyalty towards government and banks, or the fact that it was the first successful service in the region. TUPAS has established a new revenue stream for banks as well as a strong competitive position. • With most banks, the user must approve and certify that the data being transferred from the bank to the RP are accurate, eliminating any liability risk for the IDP.

Adapted from A Blueprint for Digital Identity The Role of Financial Institutions in Building Digital Identity for World Economic Forum in collaboration with Deloitte - http://www3.weforum.org/docs/WEF_A_Blueprint_for_Digital_Identity.pdf

Digital Identity Toolkit - Section 4: Case studies 37 Sweden: BankID Sweden has established an eID system that provides citizens and businesses access to over 300 public and Retail private services. Digital identities are issued by a set of private entities, including large banks and a major telecommunications provider. The public sector buys identity validation services from the private sector. Private sector service providers can join the BankID system by signing contracts with eID providers for authentication. The solution has been very successful - over 9 million citizens currently Safe and efficient online shopping use the service. One of Europe’s biggest e-trade companies is experiencing great success using the Signicat platform in their online shop. Using these solutions, Komplett has made it simpler and more convenient for their customers to shop safely online. Komplett can complete credit assessments and collect payment online in a matter of seconds. After using BankID for the credit assessment, and once it is accepted, a credit agreement is automatically processed and presented to the customer, at which point the customer can sign and verify the purchase using BankID. Komplett has online shops in ten different countries, 1.8 million active registered users and had 7.3 billion Norwegian kroner (approximately $600m) in revenue in 2015. This kind of volume requires flexible, user-friendly solutions that work with various applications and web-solutions across national borders.

China: Alibaba and KFC Payments using biometrics are on the rise in China. On Alibaba’s Singles’ Day on 11 November 2018, the world’s largest shopping event attracted $30.8 billion in total transactions. This year, 60% of customers paid either by scanning their fingerprint or by taking a selfie. Alipay users can also use the Smile to Pay app: in a few seconds it can recognise and identify a face, then verify payment through a mobile phone. It’s seeing widespread adoption: it has now been rolled out to 300 KFC restaurants across China.

Adapted from A Blueprint for Digital Identity The Role of Financial Institutions in Building Digital Identity for World Economic Forum in Adapted from Signicat: Komplett Case Study, Digital Identity in Online Retail https://www.signicat.com/references/komplett-online-retail-case- collaboration with Deloitte - http://www3.weforum.org/docs/WEF_A_Blueprint_for_Digital_Identity.pdf study

Digital Identity Toolkit - Section 4: Case studies 39 range of Smart Wallet services outside can detect and verify a traveler’s the travel sector to improve the ease identity. These developments thus Travel of verification for a variety of public far only apply to those with a UAE and private sector services. digital identity, but other countries and airlines around the world (e.g. In addition, the government has JetBlue flights to Aruba or KLM in announced the development of a Amsterdam) are investigating similar “biometric border” in Dubai’s airport, mechanisms for cost reduction and which will replace smart gates with time savings during air travel. facial recognition scanners that United Arab Emirates The travel industry is valued at some thus represent a massive financial $2.7 trillion globally and served over opportunity in the travel sector. 3.8 billion air travelers in 2016—a number that is expected to reach 7.2 As home to the third busiest airport billion by 2035. The identity of each in the world by passenger volume— of these individual travelers must be nearly 84 million passengers passed verified multiple times throughout through Dubai in 2016—the UAE is a their journey, including during prime example of a country that has ticket purchase, check-in, security benefited from leveraging its digital checks, and (if crossing borders) identity platform to streamline identity immigration and customs. However, verification processes in the travel the paperbased passports and other industry. identity documents that underpin In June 2017, the UAE released these verifications are often expensive a digital Smart Wallet app that and inefficient. can replace paper-based identity Customer abandonment rates are documents for travel. In the current high in online ticket purchases, often “phase one” iteration, customers can stemming from friction in identity upload existing passport and visa verification and authentication information to the app. At the airport processes. Research has indicated gate, the app produces a bar code that airlines themselves accrue to be scanned, eliminating the need overhead costs and fines of about for passengers to produce physical $0.50 per passenger, and errors identity documents. The service can in passenger identity data are a be used by all national ID holders prominent factor. Furthermore, the ages 18 and above, and over half a high cost of documents—e.g. a million travelers have taken advantage passport costs more than 10 percent of the service thus far. The digital of per capita income in 10 percent of verification process is estimated to countries—may be insurmountable to have reduced the time required for some would-be travelers, creating a identity checks by airlines to 9–12 significant barrier to free movement seconds, creating significant savings and shrinking the potential customer in administrative costs. In the future, pool. Improved identification systems the UAE has plans to expand the

Adapted from Private Sector Economic Impacts ID Systems: Savings Channel: Decreasing Costs and Expenditures by ID4D, World Bank Group - http://pubdocs.worldbank.org/en/219201522848336907/PrivateSectorEconomicImpactsIDSystems-Web.pdf

Digital Identity Toolkit - Section 4: Case studies 41 • Confirm users’ name, age, photo and gender by verifying through the user-friendly biometric identity Online dating system. • Make integration into an existing system fast and seamless, usually in less than a day.

An ID solution users love Building safer dating communities Yoti is the world’s first user-centric ID solution. In other Talking to someone online for the first time can be a nerve- words, it allows for large-scale deployment while also racking experience as both people work to build trust. respecting the privacy needs of users. It’s a commercially Going a step further and actually meeting can be even viable solution which is easy to integrate if needed, and more stressful, and users don’t need the extra headache of underpinned by industry leading security technology. avoiding scammers or fake profiles. With Yoti’s verification system, users of online communities can be sure that the You can learn more about this solution in this video: person they are talking to or meeting is really who they say https://youtu.be/yXGij0UapSE they are.

Yoti’s digital identity app has many uses in many sectors, and can:

• Increase trust in an online platform as only real people with real identities can be part of the community. • Enforce age restrictions as Yoti’s verified users allows providers of online communities to set an age limit for account creation. • Improve safety precautions for meet-ups by reducing scams and discouraging misconduct by linking profiles to real identities. • Protect user anonymity and privacy since the Yoti verified ID can be set to only be visible to the system providers, meaning users can keep using a public profile picture or name of their choice. • Make it easier for users to create an account with less admin because Yoti holders already have verified identities, which makes the system providers’ user verification process smoother and quicker.

Digital Identity Toolkit - Section 4: Case studies 43 Accessing financial services

Norway: Bank ID In 2004, Norway developed programmeme. It has more than 3 BankID in collaboration with the million users. It uses the same secure Norwegian government and a technology as BankID but can be group of cooperative banks, and it accessed via a mobile phone rather is now used by more than 75% of than a physical token. citizens. The system is simple to use, requiring users to enter their personal It is easy to subscribe. The client identification number, their chosen simply asks to be admitted via personal password and a one- smartphone and the bank validates time password from their physical their digital identity. The BankID code token. An electronic signature organisation then provides the client using BankID is just as binding as a with a mobile BankID SIM, which they handwritten signature on paper. use to activate and use the system. In 2009, Norway launched the Users of both these services can mobile BankID system to enable access a range of financial services, users to manage their bank accounts including executing transactions through their mobile phones without and buying capital funds. Access becoming a victim of identity theft. to internet banking and the digital The five main operators in Norway signing of financial documents are (Tele2, TDC, NetCom, Ventelo services most commonly used by and Telenor) are now part of the customers. Users can also use it to shop online.

Adapted from G20 Digital Onboarding by The World Bank Group and Global Partnership for Financial Inclusion - http://documents.worldbank.org/curated/en/362991536649062411/pdf/129861WP-10-9-2018-17-26-21-GDigitalIdentityOnboardingReportlowres.pdf and Mobile World Capital Barcelona: Norway, at the Forefront of Digital Identity for Mobile Banking Services https://mobileworldcapital.com/2015/09/16/norway-at-the-forefront-of-digital-identity-for-mobile-banking-services

Digital Identity Toolkit - Section 4: Case studies 45 Sweden: BankID well. BankID has recently integrated retailers. Swish is now used by more next generation identity verification than five million Swedes for real-time Identity is key to use cases throughout easily to digitisation. The Swedish and authentication mechanisms digital payments, with a user base the customer lifecycle in the financial government opted to pursue a based on behavioral biometrics to growing by over 150,000 per month. services industry, and banks currently market-based digital identification minimize reliance on passwords. Six These advanced and improving spend over $1 billion annually on system rooted in the financial services of the country’s largest banks also levels of digitisation, innovation, and identity management solutions. sector to spur competition between cooperatively launched a common reliable identification infrastructure Numerous savings and revenue identity service providers, thus mobile payment app, Swish, in 2012, have secured Sweden’s status as one generation opportunities arise in facilitating innovation and driving building on BankID’s functionality. of the top 10 countries in terms of the private sector from improved per-transaction costs down, creating As of 2014, the app had expanded “ease of doing business.” government-provided identification trusted identity integrations into a its services to include e-commerce systems. greater variety of e-services, and payments at a cost of 1.5 and 2 kronor reducing initial implementation costs ($0.19–$0.25) per transaction for Moreover, because robust identity for the public sector. verification and authentication mechanisms are required in this First launched in 2003 and managed industry, financial services providers by a consortium of 10 Swedish banks, themselves often serve as providers BankID is a PPP-based identification of federated identities for other system. All customers of participating transactions, as with Norway’s banks are given an eID free of charge, BankID, Denmark’s NemID, and GOV. which can be used to authenticate UK Verify. Some have argued that transactions across the private and financial institutions are uniquely public sector. Companies looking to qualified to serve as foundational integrate BankID with their services identity providers as digital identity establish a contract with a bank in regimes around the world mature. The the BankID network, facilitating an development of BankID in Sweden additional direct revenue stream provides a valuable illustration of to participating financial services financial services in identity system institutions. Identity credentials architecture, and the multiple themselves are available in “hard” economic impact channels that form—encoded on a smart chip—or dynamic can facilitate. “soft” form, which is available on a user’s personal computer, tablet, or Sweden has a long history of robust phone. Currently, BankID facilitates federal identity ecosystem. Swedes 2 billion transactions per year and have had a foundational identification is used by more than 80 percent of system characterised by a unique Swedish citizens. ID number since 1974, allowing administrative frameworks and the Sweden has additional plans for the broader public to adapt relatively programme’s continued expansion, as

Adapted from Private Sector Economic Impacts ID Systems: Savings Channel: Decreasing Costs and Expenditures by ID4D, World Bank Group: http://pubdocs.worldbank.org/en/219201522848336907/PrivateSectorEconomicImpactsIDSystems-Web.pdf

Digital Identity Toolkit - Section 4: Case studies 47 Caribbean: Juvo’s Flow Lend In the Caribbean, access to a bank account is lower than the global average because of the high prevalence of cash- Due diligence based transactions, which makes proving income and credit history difficult - although most people can prove their identity. Prepaid phone ownership levels are high. for regulators Juvo’s Flow Lend solution helps Cable & Wireless prepaid mobile customers establish a financial (functional) identity. Juvo’s solution works by using a combination of data science and financial and game mechanics to analyse mobile phone usage and predict customer behaviour. Each customer is assigned a Juvo identity score and given access to an airtime credit extension based on that score (a low score translates to a institutions lower value airtime credit extension). Each credit extension that is repaid on time adds to the user’s identity picture and contributes to improving the Juvo identity score. Over time, this enables customers to access larger value airtime credit extensions while contributing to building a financial identity for a previously anonymous prepaid subscriber. To date, the solution has enabled over $25 million in airtime Global: Global Legal Entity Identifier credit extensions, increased consumption of Cable & Foundation (GLEIF) Wireless services by 10% and increased loyalty for the Cable & Wireless brand. Regulators: Case study GLEIF is an organization that supports the implementation of the Legal Entity Identifier standard – this standard might ultimately become a common thread between identifier systems in an effort to create a standardized global view of legal entities.

• GLEIF manages a network of Local Operating Units that issue Legal Entity Identifiers (LEIs) to legal entities worldwide. • Legal entities engaging in financial transactions submit a standard set of attributes to a Local Operating Unit, which validates them against third- party records and then issues an LEI. GLEIF holds the master file of all LEIs and associated entity information. • The system was introduced by financial regulators to improve micro and macro prudential risk assessment and management, increase market transparency and improve the accuracy of financial data. Adapted from Innovative Mobile Digital Identity Solutions: Financial Inclusion and Birth Registration, by GSMA - https://www.gsma.com/mobilefordevelopment/wp-content/uploads/2018/07/DI-Companies-Case-Study_v5_WEB_Singles.pdf

Digital Identity Toolkit - Section 4: Case studies 49 • Beyond financial services and regulation, the goal Spain of the LEI system is to provide reliable identity A consortium of Spanish banks is moving ahead with the information to permit unique identification of legal development of a blockchain-based digital identity platform. entities worldwide, in financial services and beyond (e.g. supply chain applications). Supported by eight companies (Abanca, Bankia, CaixaBank, • Over 430,000 LEIs have been issued since October Caixa Ontinyent, Ibercaja, Kutxabank, Liberbank and Unicaja 2015. The LEI is intended to become the link Bank) and led by Cecabank in collaboration with Grant between all other identifier systems (e.g. know your Thornton, the Niuron consortium was established in 2017 to customer systems, business register codes, etc.). build tools designed to counter money laundering and boost This would allow regulators to have a consistent and KYC (Know Your Customer) efforts. comprehensive view of all legal entities and financial Five members of the consortium are now continuing with a instruments globally. project to verify the identities of new clients and share the data with other consortium members. The project is the continuation of a proof of concept stage, which demonstrated improvements in cybersecurity, the traceability of operations, increased transparency and privacy, savings in costs due to removing intermediaries and, ultimately, making the client the owner of their data.

‘The Niuron consortium was established in 2017 to build tools designed to counter money laundering and boost KYC (Know Your Customer) efforts’

Innovative Mobile Digital Identity Solutions

Adapted from Innovative Mobile Digital Identity Solutions: Financial Inclusion and Birth Registration, by GSMA - https://www.gsma.com/mobilefordevelopment/wp-content/uploads/2018/07/DI-Companies-Case-Study_v5_WEB_Singles.pdf

Digital Identity Toolkit - Section 4: Case studies Digital Identity Toolkit - Section 4: Case studies 51 Further reading

Websites • Africa Policy Review. ID For Development: Opportunities and Challenges for Africa http:// africapolicyreview.com/id-for-development- opportunities-and-challenges-for-africa/ • e-Estonia. e-Identity https://e-estonia.com/solutions/ e-identity/id-card/

• e-Pravesh. Aadhar Would Be Mandatory for Online Courses https://www.blog.epravesh.com/aadhar- essential-online-courses/ • GSMA. Mobile for Development: Digital identity Case Studies from Africa and Latin America https://www. gsma.com/mobilefordevelopment/blog-2/digital- identity-case-studies-from-africa-and-latin-america/ • Smart Nation Singapore. Moments of Life https:// www.smartnation.sg/what-is-smart-nation/initiatives/ Strategic-National-Projects/moments-of-life • The Times of India. Aadhar Helped Identify 80,000 ‘Ghost’ Teachers in Higher Education Institutions https://timesofindia.indiatimes.com/india/aadhaar- helped-identify-80000-ghost-teachers-in-higher- education-institutions/articleshow/62383881.cms • Thomson Reuters. Who Are You? Defining Digital Identity and Authentication Technologies https:// blogs.thomsonreuters.com/answerson/digital-identity- authentication-technologies/ • Tomorrow Makers. 7 Benefits of Aadhaar Card https:// www.tomorrowmakers.com/tax-planning/7-benefits- aadhaar-card-listicle This section of the Toolkit has outlined the many ways digital identities can help people access public and private services. Digital • TrigID https://trigid.org/ identities can save both time and money, promote inclusion and protect security. In Section 5, you can learn more about digital • identity providers and how you can integrate their tools into your own projects and platforms.

Digital Identity Toolkit - Section 4: Case studies 53 Reports • ID4D, World Bank Group. The Role of Digital Identification in Agriculture: Emerging Applications • World Economic Forum in collaboration with Deloitte. http://documents.worldbank.org/curated/ A Blueprint for Digital Identity: the Role of Financial en/655951545382527665/pdf/Digital-ID-Agriculture- Institutions in Building Digital Identity http://www3. Web12192018.pdf weforum.org/docs/WEF_A_Blueprint_for_Digital_ Identity.pdf • ID4D, World Bank Group. The Role of Digital Identification in Healthcare: The Emerging • GSMA. Digital Identities: Advancing Digital Societies Use Cases http://pubdocs.worldbank.org/ in Asia Pacific https://www.gsmaintelligence.com/ en/595741519657604541/DigitalIdentification- • Mastercard. Digital Identity, Restoring Trust in a HealthcareReportFinal.pdf. Digital World https://www.mastercard.us/content/ • Digital Identity in the Last Mile: Grassroots Research dam/mccom/en-us/issuers/digital-identity/digital- Overview https://www.yoti.com/blog/grassroots- identity-restoring-trust-in-a-digital-world-final-share- non-profit-digital-identity-needs-an-overview-of-our- corrected.pdf recent-research • ITU. Digital Identity Roadmap Guide https://www.itu. int/en/ITU-D/ICT-Applications/Documents/Guides/ ITU_eID4D_DIGITAL%20IDENTITY_ROAD_MAP_ GUIDE_FINAL_Under%20Review_Until-05-10-2018.pdf • Everest Digital ID White Paper https://icosbull.com/ eng/ico/everid/whitepaper • The World Bank Group and Global Partnership for Financial Inclusion. G20 Digital Onboarding http://documents.worldbank.org/curated/ en/362991536649062411/pdf/129861WP-10-9-2018-17- 26-21-GDigitalIdentityOnboardingReportlowres.pdf • Caribou Digital Publishing and Omidyar Network. Private Sector Digital Identities in Emerging Markets https://www.cariboudigital.net/wp-content/ uploads/2019/01/Caribou-Digitial-Omidyar-Network- Private-Sector-Digital-Identity-In-Emerging-Markets. pdf • Identification for Development (ID4D), World Bank Group. Private Sector Economic Impacts from Identification Systems http://pubdocs.worldbank.org/ en/219201522848336907/PrivateSectorEconomicImpac tsIDSystems-Web.pdf

Digital Identity Toolkit - Section 4: Case studies 55 Published by the Social Purpose Team at Yoti www.yoti.com/social-purpose