Governments globally are facing a huge challenge – exponentially, all around the world people are expecting interactions with the state to take place online. Even more so, citizens are expecting governments to treat them as valued customers whose user experience matters. Mastering the transition from paper to digital is a complex process, but some countries are already taking leaps toward a truly seamless society and with their interactions with citizens to the next level.
There’s no doubt about it, governments have to go digital. Not only to meet the new demands from their population, but also to make their economies more competitive.
According to McKinsey & Co, almost €1 trillion could be freed up annually worldwide if full potential of government digitalization is captured. In Denmark, for example, electronic invoicing saves taxpayers €150 million and businesses €50 million a year. In Italy alone, e-procurement systems cut more than €3 billion in costs. The Estonian government estimates that digital signatures alone save the country the equivalent of 2% of GDP annually. And according to the United Kingdom’s government estimates, gov.uk saved more than €48 million in government spending within a year of its launch. McKinsey has also pointed out that if Sweden can fulfill its digitalization potential by taking advantage of six important technological trends, it could generate €79-130 billion per year by 2025.
A key enabler in digital transformation is the implementation of electronic identities — an essential component of infrastructure upon which the future of e-government and private e-services will be built. A unique electronic ID with full capacity to make legally binding actions online – anywhere, anytime – provides a huge advantage for people, companies and governments alike.
According to McKinsey, countries could unlock economic value equivalent to between 3 and 13 percent of GDP in 2030 from the implementation of digital ID programs, with just over half of the potential economic value potentially accruing to individuals.
Digital ID can also unlock noneconomic value, potentially furthering progress toward ideals that cannot be captured through quantitative analysis, including those of inclusion, rights protection, and transparency. Digital ID can promote increased and more inclusive access to education, healthcare, and labor markets; can aid safe migration; and can contribute to greater levels of civic participation.
In Estonia, people give approximately 300,000 digital signatures every day. They use their digital identities to utilize government services such as getting information about how much taxes they’ve paid, looking up who their family doctor is or seeing whether someone has accessed their information online. They also use their electronic IDs to vote.
Nortal has helped build and modify already existing eID solutions and integrate them into services, making eID a natural part of the existing e-government infrastructure. We support the provision of all aspects necessary for a successful implementation of Electronic Identity — whether it is eID infrastructure, trust services, digital signatures, authentication solutions, establishing policy, supporting legal environment or nationwide e-governance.
Estonia, a country widely regarded as a truly digital society, has made yet another innovative leap by launching proactive family and parental benefits. This means that parents of a newborn no longer need to apply for benefits but receive a proactive proposal from the government for the benefits they are entitled to, which they simply have to confirm.
In the competitive world of the Internet of Things, the demand for a fully functioning electronic identity (eID) has become more pressing than ever. As more and more people have access to the internet, and the need for electronic identity grows exponentially, it is crucial to adopt a proactive approach. Your citizens or your clients are expecting to communicate with the state or do business via electronic channels. Users have to be able to authenticate and sign documents digitally, and it is in your power to offer them the means to do so.
In the Baltic states, the push to develop a new eID solution for online banking resulted in something far more powerful: an ultra-secure, mobile-based system for authentication and digital signing that requires no special SIM card. It can be adopted by any online service provider, is free for users and naturally, has caught on like wildfire.
Estonia started building a digital society after it restored its independence in 1991. The country’s economy collapsed, about every third adult worked in agriculture, more than 50% of the industry was military-oriented. There was no decent banking system nor a national currency. Modern telecommunication infrastructure was missing, and the average salary was less than ten euros a month.
As President of Estonia, Kersti Kaljulaid has said that the crucial question was how to overcome the legacy left by the Soviet occupation. “Our response was — we need to build up a modern, efficient and democratic state,” Kaljulaid said in a speech in 2017. Radical reforms were carried out in all walks of life. “The forward looking idea was to harness the innovative potential of Information and Communication technology (ICT). Neither we nor anyone else knew 20 years ago, how important Internet and ICT would become and what role it would play in the organization of state and society.”
Although the choice to turn to technology was not an easy one, Estonia’s gamble paid off. “In hindsight we can agree that the ‘Tigerleap’ program, as it was called, gave the entire Estonian society the momentum to make a digital leap into the future,” Kaljulaid said. “Schoolchildren, having become computer literate, brought their newly acquired skills home and also ‘infected’ their parents (and grandparents) with the digital ‘bug.’ Priorities changed for families — instead of a new refrigerator, it was often decided to rather invest into a computer and an internet connection.”
Today, 99% of government services in Estonia are digital. 97.9% of Estonians use Internet regularly.Almost everyone has an active, electronic ID-card in their pocket that enables Estonians to give more than 100 million digital, legally binding signatures a year.