By Andrew Sever, CEO and co-founder, Sumsub
For most of the world, digital access is foundational to how we manage business, connect with others, and conduct our everyday lives. However, in many regions, especially emerging markets, digital access isn’t equitable. It prevents everyone from participating in and benefiting from the global economy.
Despite the United Nations striving for universal internet connectivity by 2023, a Digital 2023 Global Overview Report found 2.85 billion people, or 35.6% of the global population, remain offline. Internet connectivity is crucial to widespread digital access, and the countless opportunities and possibilities it affords.
For example, in India alone, 51% (or 730 million people) remain unconnected. This means more than half of the population cannot access the internet. They cannot access a bank without entering a physical branch. Or pursue an online education or job opportunities. Or have a virtual consultation with a doctor. This stunts not only their health, wealth, and wellness, but the economic growth of the entire country.
Getting the remainder of the global population online and involved in the digital economy is imperative for the success of businesses powering our economy, and continued global growth and innovation.
Digital inclusivity provides opportunities for all
Digital inclusion is Sumsub’s mission. Our team strives to make the digital world friendlier, more accessible, and inclusive. We rally around ‘The Power of One’ – one platform, one journey, one world.
Our single platform handles the digital verification needed throughout the whole user journey. Much like the customer journey doesn’t stop at onboarding, neither does verification. It is crucial to secure every step of the journey from initial screening to later stage, high-risk transactions. We provide transaction monitoring and fraud prevention solutions, including deepfake detection, helping businesses and countries stay ahead of evolving regulations and navigate the fraud landscape. In an effort to streamline their ability to quickly and safely verify identities, forerunning markets including Palau and Maldives use Sumsub to facilitate national digital ID adoption.
No matter where in the world they live, the language they speak, or the document types used to prove their identity, our customers reach global markets. They can onboard users worldwide, bringing new technology and innovation to people previously missing out.
Becoming digitally inclusive
One of the biggest challenges to digital inclusion is ensuring regions can do business safely outside of their borders. This requires reliably verifying digital identity to prevent fraud, deepfakes, and money laundering. According to the United Nations Office on Drugs and Crime, an estimated 2 to 5% of global GDP, $800 billion to $2 trillion, is laundered each year.
The inability to verify digital identity prevents digital inclusivity for countless individuals across the world, and the same barriers trickle down to affect businesses, communities, and socioeconomic development. This leads to the perpetuation of poverty and income inequality, educational and health disparities, and a disconnection from community and the world.
In fact, an estimated 850 million people worldwide don’t have an official ID according to the World Bank. The same report found 1 in 3 adults without an ID had difficulties using financial services, receiving government financial support, applying for a job, or voting in elections. Nearly 40% struggled to obtain a SIM card or mobile phone service, while 25% had problems receiving medical care.
These issues are most prominent in countries within the gray or red zones. These are countries historically considered to not implement defensive strategies against anti-money laundering and counter-terrorist financing regimes. Even users in good standing in these countries have had issues obtaining the identification needed to benefit from digital services.
Without an official ID, there’s little hope for a verifiable digital ID, excluding almost a billion people from the digital world and global economy.
Implementing Solutions While Remaining Compliant
Fraud continues to rise, including in industries meant to be the most regulated. Sumsub recently found the top industries affected by fraud in the U.S. to start 2023 were IT services, online media, crypto, and fintech. If worrying about rising fraud isn’t enough, businesses need to meet regulations across all industries and countries. Sumsub’s platform enables businesses of all sizes across all industries to prevent fraud, meet compliance requirements, reduce costs, and onboard customers worldwide. The platform also provides monitoring tools protecting customers from fraud and account takeovers throughout their online journey.
For example, Sumsub customers can create detailed verification workflows tailored to specific end user groups. With it, users in red-flagged countries can access services otherwise blocked without a personalized verification flow. Such workflows set risk scores for each user, shifting the focus from broad country- or region-based risk assessments.
Another solution providing the most user-friendly verification possible is non-document verification. This helps organizations securely onboard users via ID numbers or official bank records with near-instant identity verification, all while staying compliant. This functionality is currently available across Argentina, Bangladesh, Brazil, Ghana, India, Indonesia, the Netherlands, Nigeria, and the U.K., giving roughly 2 billion people a more fair chance of participating in the digital economy and accessing online services.
By eliminating fraud and verification challenges, Sumsub contributes to a world where anyone—regardless of location, language, country of origin, document type, and any other previously restrictive standard —can securely access online services and thrive in the digital economy.
