How a unique digital identity benefits global trade

Evolution of the internet over the past decade has brought forth massive disruption in the global business trading sector. From start-ups, co-working hubs, remote companies to fortune 500 companies, there exist a constant hunger to learn new adaptation mechanisms or risk running out of business. 

Understanding digital identity in the business realm

Digital identity tools enable customers to prove their identities remotely. This means they neither require to be physically present nor have physical documents to perform a transaction. Undoubtedly in the e-commerce sector, obtaining unwavering customer trust is vital.

In today’s economy, taking advantage of the power of digital identity is paramount for businesses. It enables entities to meet several compliance pacts such as Anti-Money Laundering (AML) regulations in addition to Customer Due Diligence (CDD) obligations. 

Trends in digital identity

Difficult and time-consuming processes like manually fact-checking numerous data sources to authenticate a company’s customer identity can be avoided with the right tools. Currently, firms are continually refining identification verification methods that utilize geolocation, biometrics, and social network analysis (SNA) with the goal of a future global unique digital identity system.

The eTrade initiative pioneered by the Estonian E-residency program in conjunction with the United Nations Conference on Trade and Development (UNCTAD), is aimed at enabling people to engage in the global e-commerce space through online businesses. Other underway digital identity programs include India’s Big Bet Initiative, Switzerland’s Swiss ID, and SDG’s ID2020.

Benefits to be realized

Improved customer experience and engagement

According to research by salesforce, 75% of customers expect companies to provide a spotless engagement experience both online and offline. Unique digital identity systems ease trade by reducing the hustles encountered in physical verification methods in addition to saving money as a business is conducted while the physical presence of the concerned parties.  As consumer expectations rise consistently, companies with developed unique digital identity systems will enjoy a more significant share of the global trade pie.

Increased market

Undoubtedly in the advent of digital identities, businesses have gained access to a worldwide market. A recent 2019 report by the McKinsey Global Institute (MGI) expounds on how businesses should embrace unique digital identities as it’s a significant component to inclusive growth. A unique digital identity provides businesses with a diverse global market in addition to its brand growth and recognition in the global trading scene.

Stay in the loop with Export Portal

Export Portal is the best place to get the latest updates in the import/export world. Sign up for our newsletter today and stay informed.