The first move towards the creation of a digital nation is to provide every citizen, institution, company and government with the chance of having an active participation in the digital economy and in developing digitally-driven social interactions.
According to the World Bank, globally 1.7 billion adults remain unbanked. In this sense, Her Majesty Queen Máxima of the Netherlands, Special Advocate of UNGSA, stated during the World Bank/IMF Spring Meetings that, “Digital ID systems can positively impact KYC compliance for account openings. More precisely, they help 20% of financially excluded adults in low- and middle-income countries who are unable to access financial services because they lack the required documents to prove their identity”.
Consequently, digital identities are without doubt an enabler for private remittance recipients and also for government-to-person aid, fostering easier payment reception and thus contributing towards improved financial access.
As a result, GVG has identified one of the central issues for the creation of trusting digital nations as being precisely the ability to store data securely and locally. In order to achieve this, it becomes an essential duty to build safe National Data Centres to store critical and sensitive data for governments and citizens. These centres should be further promoted across different regions in Africa. The stronger the technology-based security means to protect them (5G or Internet of Things), the bigger the trust in the digital ecosystem.
Global Voice Group’s solutions promote trusted digital identities as the cornerstone of digital inclusion. They assist governments in their decisive role in improving and fostering financial inclusion. This commitment will certainly come up in ITU Telecom World 2019, in the context of the upcoming session on 10th September, Universal financial inclusion access through innovative FinTech and Digital Currency.
Drivers of Digital Identities
Across the globe, a series of countries, including Estonia, have pioneered the race towards the creation of digital nations. A growing number of emerging countries are also taking the lead in building more inclusive economies.
For instance, the Government of India has saved more than $9 billion from fraud elimination in its beneficiary lists across multiple programs after they leveraged their unique ID system for government-to-person payments.
In addition, as Rwanda President Paul Kagame stated recently, digital identities are the starting point of a long and valuable chain of capabilities that empower citizens in their participation within the regional and global economy. However, these digital systems can only succeed on the basis of trust. Kagame also pointed out that there is an urgent need to protect information from unauthorised access. So tools should be implemented to identify the source of data and its use, always putting user privacy first.
Moreover, the African Union (AU) has recently recognized digital identification systems as the essential means to open up new gateways for new social and economic opportunities, including education, employment, financial services, mobile communication, travel, and voting.
Trust as a precondition for Financial Inclusion
An ID4Africa survey highlighted that 60% of Africans believe their governments will introduce new identity systems in the next two years, in part to support the African Continental Free Trade Area (AfCFTA) and to deliver public goods and services more effectively.
However, fostering more inclusive financial systems through digital identities can only be undertaken with trust as a prerequisite. If this requirement is not met, users will not feel their data is protected and, as a result, countries will fail to promote financial inclusion, as this lack of trust will prevent many transactions from being carried out.
Month: August 2019
Does digital transformation even exist without the personal digital transformation?
I recently came across an interesting imaginary dialogue in relation to the labour market transformation. During the late-stage industrial revolution when automobiles took over the place, one said:
- You see? We don’t have to worry about that much. In the past, we had carters and carts and today we have cab drivers with automobiles. The market generates new opportunities.
- Okay, but what happened to the carters’ horses?
The trends we see today imply that the daily work-practice of the last two decades in the field of administration, process management, manual data controlling and so on will be outdated very soon, and only a few years remain for people working in these fields to adapt from the labour perspective. This is what we call digital transformation.
The question that every manager should ask from themselves is how can we not write-off the best and most loyal team members as collateral damage of the digital transformation? We can rephrase the question like this: how are we going to successfully conduct digital transformation with analog staff?
Reflecting back to the imaginary dialogue: Analog staff are the horses and digital-ready skillsets are the cars with internal combustion engines.
We have several good examples when employees could be upgraded for digital-ready skills and find their place in the new digital economy. Just to name one remarkable example: at a big German multinational company a group of manual software testers were retrained as automated testers. Why was it worth for the management to invest in to such expensive training?
Because otherwise they would have instantly had to realize the loss of all the experience, domain and market knowledge as the collateral damage of laying-off the manual testers. Not to mention the reality that finding even 20 good IT people today is a significant and expensive challenge considering around 600k IT experts are missing from the EU job market.
We believe that if someone is motivated enough to move out of their comfort zone, then it makes sense to invest in them to acquire digital and IT skills. All other solutions are just way too expensive from the company perspective. Of course, not everyone is ready for the personal digital transformation journey but with the right encouragement and approach, we can select the most fitting candidates, train them and make them an engine of the company’s digital transformation.
I’m looking forward to discussing this and other key topics in the panel session “Future skills for a future world” at ITU Telecom World 2019 in Budapest next month.
Electronic waste, or e-waste, is often seen as one of the telecom industry’s biggest global challenges. But what if it’s actually a huge opportunity for business and society?
Buying Green
It’s on the agenda for just about any large organisation: green procurement. Ecovadis’ research in 2017 mentioned that some 97% of all corporates, municipalities and national governments aim to buy stuff in a (more) responsible way. One year later, Accenture concluded that our industry is not doing great on ‘sustainable consumption’; delivering products and services that move away from good old ‘take-make-waste’.
One for One
Two problems? Or one opportunity? Several organisations in the telecom industry are trying out a circular service now commonly known as ‘One for One’. It is explained in this short video, and is quite straight forward: the material footprint of a new phone is offset by recycling one old ‘scrap phone’. The latter is collected in the emerging world, where electronic waste is abundant.
Companies like T-Mobile and Samsung see the service as a simple, transparent way to offer green services – or ‘circularity’ – to their customers. These customers, such as the Dutch government, are able to procure phones in a green, ‘closed loop’ way.
‘Circularity as a service’
So, how does this work? When a customer purchases a new phone, a small fee is added to the purchase price. That fee is used to pay for an ‘offset’: the collection of an end-of-life scrap phone in a developing country, such as Ghana. The scrap phone is bought through small phone repair shops or other informal channels – thus creating jobs and income, while reducing pollution. Next stop: Europe, where this ‘waste’ can be recycled and over ten – increasingly scarce – precious metals are extracted and made fit for re-use.
This service thus offers an easy, practical form of circularity – without the normal side-effect of a complicated procurement process.
Future proof industry
We can be quite proud to be part of the telecom industry. Let’s be honest; no product is more iconic than a phone, as it symbolizes innovation and advancement. But most of all, the telecom industry is really good at telling great stories. But that strength and marketing power could also be used for a green purpose; to create an appealing story of how we can all contribute to more recycling — not because you have to, or by stating it’s ones responsibility. But by proclaiming the beauty of working together to make this industry waste-free and sustainable.
That’s how we can make telecom future-proof. I look forward to discussing this more in the panel debate “Strategies to boost climate action in the ICT sector” at