The World Bank estimates that roughly one billion people lack official foundational identification. These one billion people are unable to prove their identity (ID) and millions more have forms of identification that cannot be reliably verified or authenticated, resulting in exclusion from economic opportunities in the emerging digital economy.

Possessing a reliable ID is integral to providing and obtaining financial services as it is needed at various stages in an individual’s interaction with the formal financial sector. The advantages of digital identity don't just end with individuals accessing a wide array of service providers, it also greatly benefits companies to onboard new customers from new geographies. McKinsey estimates that institutions could benefit from improved customer registration, reducing onboarding costs by up to 90% and reducing payroll fraud adding up to savings of $1.6 trillion globally. It is also estimated that for emerging economies, while the share of the economy that digital ID can address tends to be modest, the scope for improvement can be significant. The average potential per-country benefit of roughly 6% of GDP in 2030.

Digital IDs offer individuals social, civic, and political benefits, from increased inclusion, formalization, and transparency to better control of online data. Designed carefully and scaled to high levels in multiple application areas, it can also create significant economic value, particularly in emerging economies, with benefits for both individuals and institutions.

12iD is tackling financial inclusion where it matters most: in developing countries. Our existing clients in countries such as Bangladesh and Nepal, where financial inclusion is a key issue, report that our platform has been supporting by offering digital onboarding and live biometrics. Our digital onboarding (ekYC) tool allows citizens from remote areas, where there is no banking presence, to open a bank account and run transactions, while our live biometrics solves the issue of digital illiteracy, as while not everyone is familiar with emails and OTPs, everyone is able to simply show their face to approve transactions.

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