The Value of Digital Trust Index reveals potential to
build growth during global economic slowdown
- Collaboration with economists at Cebr reveals digital
trust's trillion dollar opportunity to drive economic
growth
- Global study finds 5% increase in digital trust is
associated with an average increase in GDP per capita of US
$3,000
- 68% of consumers support the creation of a digital identity
system
- Digital trust gap emerging with non-Western markets leading
Western markets leading with more trust in the digital
economy
LONDON, Aug. 16, 2022 /PRNewswire/ -- A new global study
has revealed for the first time an economic value to building
digital trust. A 5% increase in digital trust results in an average
increase in GDP per capita of US $3,000. The findings are significant due to the
global economic slowdown because investing in building digital
trust into digital economies has the potential to deliver growth
and productivity. The Digital Trust Index: the value of digital
trust is seminal research, conducted by Callsign, the digital
trust pioneer, and the Centre for Economics and Business Research
(Cebr), into the attitudes and drivers of digital trust across
modern economies.
"This Callsign research reveals the value of building digital
trust to the global economy, and reflects the conversations and
enquires we are engaging in. Organizations across the globe are
looking at digital identity as the foundation to their digital
ecosystem– delivering trusted interactions for consumer-to-business
as well as business-to-business interactions. The research also
demonstrates the negative impact if the industry doesn't take
proactive measures to address consumers' building lack of digital
trust," says Julie Conroy,
Head of Risk Insights at Aite-Novarica Group.
The new report has found that a 'digital trust gap' is emerging
around the world. Non-western markets have a positive trust gap
(South Africa (16%), ME&A
(15%), Brazil (6%) and APAC (5%))
indicating consumer attitudes to digital trust in the digital
economy exceed societal trust levels. Western markets have a
negative trust gap (USA (-4%),
Benelux (-6%), and Canada (-9%))
where societal trust is higher than digital trust. The UK was the
only market where digital and societal trust levels were the
same.
With more of consumers lives online, this is a critical
differentiator for emerging markets as economies slow down.
The potential to unleash GDP per capita growth from the digital
economy may see emerging economies gain advantage in this new
online era.
Zia Hayat, CEO and co-founder,
Callsign, said,
"For too long, trust has been referred to as an abstract concept
without commercial consideration or investment to address it
however, the influence of digital trust is now quantifiable.
At this critical time, our study found hundreds of billions could
be unleashed into our economies by improving digital trust. For
businesses and governments this means working together to build
ethical, secure digital identities. Knowing who you are interacting
with online is the foundation for digital trust, and now is the
time to act as we look to reimagine our economies for a digital
world."
The prevalence of online crime in Western markets is having a
major impact on our trust levels and as a result our economies. 36%
of US consumers surveyed claimed to have been affected by online
fraud or a data breach. The digital economy is expected to grow
from US $14.5 trillion in 2021 to US
$20.8 trillion* by 2025, while the
cost of online crime over the same period will rise from US
$6 trillion to US $10.5 trillion. If business and governments want
to harness the power of digital trust, they must tackle the
foundational element, digital identity.
47% of consumers expect governments to create a more secure
digital world. To achieve this, over two thirds (68%) of
respondents support the creation of a digital identity system
covering technology, process and data policies overseen by an
independent body. Consumers would trust banks and financial
services firms the most to create and maintain the system.
Josie Dent, managing economist,
Cebr, said, "Our study breaks new ground in valuing digital trust
on society and modern economies. We found a strong relationship
between digital trust and societal trust, with a profound increase
to GDP per capita of US $3,000. This
means the deployment of digital identity solutions and improvements
to data privacy, technology, accessibility and fraud levels, there
is a trillion-dollar pent up opportunity for businesses and
governments."
To see the full Digital Trust Index report, visit
https://www.callsign.com/digital-trust-index
About Callsign
Callsign is pioneering digital trust
through proprietary technology that uniquely mimics the way humans
identify each other in the real world.
Positive identification of genuine users delivers privacy,
safety and minimal friction whilst ensuring that bad actors are
blocked. Through a simple Swipe or Type, users can be personally
recognized to a 99.999% accuracy, delivering the highest fidelity
AI based user recognition for the digital world.
To learn more about how this technology is used to underpin
digital trust across financial institutions, governments and
commerce globally visit: https://www.callsign.com/ 
About The Centre for Economics and Business Research
(Cebr)
The Centre for Economics and Business Research (Cebr)
is an independent consultancy with a reputation for sound business
advice based on thorough and insightful research. Since 1992, Cebr
has been at the forefront of business and public interest research.
They provide analysis, forecasts and strategic advice to major UK
and multinational companies, financial institutions, government
departments and agencies and trade bodies. For further information
about Cebr please visit www.cebr.com.
Notes
The methodology for this report involved conducting a survey to
measure levels of trust in online and digital services across nine
key regional markets. As part of the report, further questions were
asked about trust in the wider society to be able to analyse
differences and common trends.
Research was carried out by 3Gem in February 2022.
Samples were as follows
APAC 2,500; Hong Kong 500,
Singapore 500, Indonesia 500, India 500, and the
Philippines 500
Benelux 500
Brazil 1,000
Canada 2,000
Middle East 2,000; UAE 500,
Kingdom of Saudi Arabia 500,
Qatar 500 and Bahrain 500)
Nordics 500
South Africa 1,000
UK 1,000
USA 2,000
*In December 2021, the Global
GDP estimate was $94 trillion
(Visual Capitalist) with the World Bank
estimating that 15.5% of Global GDP in 2021 was the digital
economy, meaning $14.5
trillion. The World Bank also estimates that over the past
15 years, the digital economy has grown 2.5x quicker than the
Global GDP. To calculate the value of the digital economy in
2025, we averaged global growth forecasts for 2022 from
the IMF, World
Bank and Fitch Ratings, which
equalled 3.73%. Given that the digital economy grows 2.5x quicker
than Global GDP, the digital economy's growth rate for 2022 was
9.33%. Compounding this growth until 2025 meant that the digital
economy would be worth $20.8
trillion, while the Global GDP would be $108.9 trillion. Therefore, the digital economy
would account for 19.13% of Global GDP in 2025 an increase of 3.63%
over 2021. Given the current macroeconomic context these are
clearly projections, which assume that the economy will continue to
grow through 2025 without a significant economic downturn.
Additionally, the value of the digital economy may in fact be a
greater percentage of the Global GDP in years to come as our
economy continues to benefit from digital innovation and more
humans getting access and begin contributing to the digital
economy.
The above analysis was conducted by Callsign
Corporate Strategy team.
Logo -
https://mma.prnewswire.com/media/1833444/Callsign_Logo.jpg