Investing in digital ID makes economic sense
The majority of Canadians believe it is important for federal and provincial governments to move quickly to enable digital ID in a safe and secure manner, according to a recent survey we the Digital ID and Authentication Council of Canada (DIACC) undertook in December 2020. Investing in digital ID makes economic sense, especially for small and medium-sized enterprises (SMEs). For SMEs, the impact of digital identity can be used to improve processes that are difficult today, resulting in a potential $4.5-billion of added value to SMEs and reinvestments in the Canadian economy.
In Canada, the DIACC and its participating banks have identified potential net savings per institution at or above $100-million per year, through operational efficiencies created by reducing manual processing costs and curbing fraud.
Data from J.P. Morgan shows that e-commerce sales are growing faster in Canada than in many other Western countries. From e-commerce to the sharing economy a robust, digital ID establishes trust, provides security, mitigates fraud and enables continued growth for the sector. This is a win for citizens, consumers, and businesses.
Establishing digital ID means decreased costs for governments, consumers, and businesses while improving service delivery and driving GDP growth. Not adopting digital ID in a meaningful way or not getting it right means more privacy and security breaches, loss of revenue for Canadian businesses and inefficiencies in government service delivery. There’s never been a better time to invest in digital ID. Our economic recovery depends on it.
DIACC’s 2021 pre-budget brief calls on the Federal Government to implement the following recommendations:
- Secure adoption of the Pan-Canadian Trust Framework by businesses and governments to ensure Canadians are well-protected and supported post-pandemic.
- Work with provincial and territorial partners along with Citizenship and Immigration Canada to ensure that all Canadians have access to an ISO compliant government-issued digital ID credential with economy-wide utility by December 31, 2021.
- Have digital identity and authentication efforts co-led by the Minister of Digital Government and the Minister of Innovation, Science, and Industry to ensure that both government service delivery and economic prosperity requirements are met.
- Prioritize the funding and integration of digital ID as part of the Digital Technology Supercluster Initiative.
- Champion and educate on the crucial role of digital identity for businesses, health care centres, academic institutions, civil society, and all Canadians.
DIACC invites all Canadian and international organizations to join us to accelerate secure, privacy-enhancing, and easy-to-use digital ID.
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