Digital identity wallets: Paving the way for smarter governance

As Malta advances its digital transformation agenda, digital identity wallets emerge as a cornerstone for creating a more efficient, secure, and user-friendly government. JP Fabri probes how Malta can leverage digital identity technology to enhance public services, streamline processes, and position itself as a leader in digital governance.

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As the world steadily transitions towards digital economies, the role of digital identity wallets is becoming increasingly significant, especially in enabling smart and digital governments. Malta stands at the forefront of this revolution with its ambitious digital transformation agenda. A digital identity wallet could be a cornerstone for a more efficient, secure, and user-friendly digital government.

JP Fabri

A digital identity wallet is a secure, user-controlled application that allows individuals to store, manage, and share their personal information, such as identification documents, health records, and financial data. Unlike traditional forms of identification, a digital identity wallet is stored on a user's device, granting them greater control over their personal data. This approach enhances security and streamlines various administrative processes, making government services more accessible and efficient.

One of the most profound impacts of digital identity wallets in Malta would be on public services, where they could drastically reduce the bureaucratic overhead associated with identity verification. For instance, citizens could use their digital identity wallet to instantly share their health records with medical professionals when accessing healthcare services. This would eliminate the need for repeated form filling and reduce the risk of errors associated with manual data entry.

Countries like Estonia and Finland have already demonstrated the potential of digital identity solutions in healthcare. Estonia's e-Health Record system, integrated with the country's digital ID, allows doctors to access patient data across different healthcare providers, ensuring continuity of care. Similarly, Finland's Kanta system enables citizens to access their health records and prescriptions through a secure online platform. Malta could replicate these models, leveraging digital identity wallets to create a seamless healthcare experience.

The financial and banking sector is also a prime example of how this technology can support its functioning. Know Your Customer (KYC) and Know Your Business (KYB) procedures are crucial in the financial sector, ensuring compliance with regulations and preventing fraud. Integrating KYC and KYB processes into a digital identity wallet would streamline these procedures, making it easier for individuals and businesses to interact with financial institutions. For instance, when opening a bank account or applying for a loan, a citizen could share their verified digital identity, significantly speeding up the process and reducing the need for in-person verification.

This integration could also extend beyond financial services. In Malta's vibrant gaming industry, which requires stringent regulatory compliance, a digital identity wallet could simplify verifying customer identities, ensuring a smoother onboarding process for the industry and its clients. This approach could serve as a model for other sectors that rely heavily on KYC and KYB processes, such as insurance, real estate, and telecommunications.

One key challenge in building a digital government is ensuring interoperability between different systems. A digital identity wallet could be a universal solution, enabling seamless interaction between government departments and private sector services. For example, when a citizen applies for a government service, their digital identity wallet could automatically populate the necessary forms with their pre-verified information, significantly reducing processing times and minimising the potential for errors.

The European Union's eIDAS regulation, which allows citizens of EU member states to use their national electronic identification to access public services across borders, offers a blueprint for Malta. By adopting similar standards, Malta could ensure that its digital identity wallet is compatible with systems across Europe and beyond, further enhancing its citizens' ability to engage in cross-border activities.

Several European countries have successfully implemented digital identity systems from which Malta can draw inspiration. Estonia, often hailed as the poster child of digital governance, has used its digital ID system for nearly two decades. This system, which includes a digital signature and authentication mechanism, allows citizens to access a wide range of services online, from voting to filing taxes. The success of Estonia's digital ID lies in its widespread adoption and integration across public and private sectors.

Similarly, Denmark's NemID and the newer MitID systems provide citizens with a single digital identity that can be used to access government services, online banking, and even private sector services. The widespread acceptance of these systems in Denmark has resulted in a more efficient public administration and has enhanced citizens' trust in digital services.

Beyond Europe, countries like Singapore and Australia are also making strides in digital identity solutions. Singapore's SingPass, a government-backed digital identity system, allows citizens to access over 2,000 government and private sector services with a single login. In Australia, the government's myGovID provides a similar service, enabling citizens to access government services securely online.

These case studies highlight the importance of a comprehensive and well-integrated digital identity system in building a digital government. With its advanced digital infrastructure and forward-looking policies, Malta is well-positioned to follow in these footsteps.

While the benefits of a digital identity wallet are clear, challenges remain. One of the primary concerns is data security and privacy. Citizens must have confidence that their personal information will be protected and that they have control over who can access it. To address these concerns, Malta's digital identity wallet must incorporate robust security features, such as encryption and biometric authentication, to ensure that data is secure and accessible only to authorised users.

Moreover, the government would need to implement strict data governance policies, ensuring transparency in how data is used and shared. Public awareness campaigns would also be essential to educate citizens about the benefits and safeguards associated with digital identity wallets, fostering trust and encouraging adoption.

Another challenge is ensuring that the digital identity wallet is accessible to all citizens, including those who may not be as digitally literate. This would require a user-friendly interface, support services to assist those who need help, and alternative access methods for those without smartphones or internet access. Ensuring inclusivity will be critical to the success of the digital identity wallet and, by extension, Malta's digital government initiative.

Implementing a digital identity wallet in Malta could be a game-changer in the country's journey towards becoming a smart and digital government. By simplifying access to public services, enhancing security in financial and regulatory processes, and fostering interoperability across different systems, a digital identity wallet would improve the efficiency of government operations and enhance the quality of life for citizens.

Moreover, by adopting best practices from other countries and tailoring them to Malta's unique context, the government can build a robust and secure digital identity system that meets the needs of all its citizens. In doing so, Malta could position itself as a leader in digital governance, setting an example for other countries in the region and beyond.

As Malta embraces digital transformation, the digital identity wallet represents a critical step forward. By prioritising security, interoperability, and inclusivity, Malta can ensure that its digital government is efficient, trusted, and accessible. The future of governance is digital, and with the right tools and strategies, Malta is poised to lead the way.

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