Digizen Digital ID

People who lack documentation are unable to collect evidence required by traditional identity systems to get registered. The challenge is further heightened by many having low income, low literacy and numeracy levels and living in rural areas from where travel to major cities to register is a substantial investment.

 
Digizen provides technology and process to overcome these hurdles. 
 
Digizen Digital ID is based on low cost NFC smartcards so people can authenticate digitally even if they don’t own a phone. Digizen cards allow streamlining the process of issuing identity documentation as the ID document is issued instantly.
 
Digizen reverses the process of identity verification by moving the task of collecting evidence about identity from individuals to trained agents who can verify identities much more efficiently. Agents visit villages to collect identity information with mobile devices and they use existing regulated processes such as vouching combined with biometrics to verify identities.

An estimated 1.1 billion people in the world are financially and socially excluded because they are not able to prove their identity. People without any ID are excluded from accessing basic financial services such as making payments, saving, getting credit and insurance. They are excluded from business and employment opportunities, voting, land ownership, etc. To further aggravate the issue, many who lack ID live in areas where there is a lack of affordable and reliable internet access and electricity.

Vulnerable people without ID documentation are not able to apply/register for an ID for reasons such as:

• Getting required evidence to apply for an ID is a huge challenge for a person who does not have ID documentation

• Applying/registering for an ID can be done usually in major cities only, to where travelling is challenging and costly

Challenges with existing digital authentication mechanisms:

• Internet connectivity and a personal smartphone are required, which are not accessible to many vulnerable groups 

• Many vulnerable groups have too low literacy and numeracy levels making existing digital authentication with user names and PIN-codes not user-friendly to them

Digizen target users are those who lack ID documentation and who live in rural areas without internet connectivity or in shanty towns near major cities. They often have limited knowledge to read, write and work with numbers.

Digizen team has conducted several user studies and field tests with the target population for example in Papua New Guinea, Philippines and in Kenya. We have developed prototypes to test the solution with real users and to validate feasibility of the Digizen ID system and different use cases.

User tests conducted have shown it is feasible - even easy - for people without any existing ID documentation to be able to complete the ID application/registration process and to get verified ID to prove who they are with Digizen.

Micro banks who use the Digizen ID system as relying parties and government entities who regulate the use of ID systems are also important stakeholders. We have been engaging these stakeholders also throughout the development process by having regular calls, by meeting in person to define requirements for the solution and also demonstrating Digizen solution with real users in the field.

Digizen Digital ID is a digital ID system that allows everyone to register either by using their existing ID documentation across borders or by establishing and verifying identities to people who lack identity documentation. 

Digizen ID system can be used across borders, through various network providers and in multitude of languages as users don't need to be literate. Digizen SDK provides easy integration with financial service providers allowing workers to receive services and make contributions or withdrawals regardless of location. 

Additionally, Digizen allows strong two-factor authentication for contributions regardless of literacy and numeracy levels — including in contexts with limited internet coverage.

• Innovative process making it feasible to verify identities for people without ID
• Issued instantly vs. weeks long document personalization
• Works offline, people don’t need to own phone
• Low cost smartcard and enrollment process that reduces admin costs

• Thales Group, Idemia, etc.
• Does not solve the problem of people without documentation to prove who they are

• GOV.UK, SecureKey, Connect.Gov, e-estonia, Aadhar
• Require online connectivity
• Slow issuing process, from weeks to months

• ZignSec, IDnow, Sumsub
• Require an existing ID
• Require online connection

Digizen ID is a near-field communication (NFC) smartcard, where ID attributes are stored and encrypted with Public Key Infrastructure. Authentication can be done with a regular Android phone using Digizen application – even without internet connectivity. All information is stored digitally in the card, which allows Digizen ID being instantly issued and ready to use immediately after issuance. Additionally, information on the card is practically impossible to fake. 

Digizen ID is issued by agents reaching people directly. Identity attributes, photos and fingerprints are collected and input in a mobile device. Vouching authorities can verify people who lack official documentation on the spot using their own Digizen ID and PIN code. The ID verification follows existing processes in many countries, but makes it digital and streamlined. Thereafter, the Digizen ID is issued immediately. 

The process is quick, low-cost and can be done without immediate access to the Internet, allowing for the opportunity to enroll a maximum number of people, especially in remote and rural areas.

Key technologies used

• Digizen ID is based on near-field communication (NFC) smart cards that provide banking grade Secure Element hardened keystore.

• Public Key Infrastructure (PKI), digital signatures, mathematically proven cryptography, safeguards all data

Digizen cyber security is currently being audited by Pricewaterhouse Coopers and the whole system and processes are validated by Asian Development Bank. 

Activities:

• Agents enrolling people to Digizen ID system with high level of integrity on ID data and with speed for massive scale

• Engaging partners such as banks to accept Digizen ID to provide services

Outputs:

• Providing people with ability to prove who they are, a Digizen ID card

• Provide services where identification is required such as opening up a bank account

Short term outcomes:

• People get access to services where they have been excluded due to lacking an ID

• E.g. People can save money on bank account instead of in their purse making life more safe

Medium term outcomes:

• People can access credit and invest in their future

• Incentives to save for a better tomorrow

Long term outcomes:

• Reduction of poverty

• Protection to vulnerable groups

• Economic growth

• Digizen can work across ID documents provided by multitude of countries as they are used in combination with biometrics to verify identities

• Digizen does not require person to have any prior ID documentation, but instead existing regulated processes are used to provide ID cards. In many countries a person in a position of trust can vouch for someones identity and these kind of processes are digitalised  by Digizen. This allows registering the whole population instead of only few percentage.

• Digizen Digital ID is a low-cost smart card, so the person does not need to own a phone

• Digizen ID card can be read with a basic NFC enabled Android device either with Digizen app or with free SDK for reading NFC cards. This allows any organisation to start accepting Digizen ID for authentication.

• Digizen ID is designed for the illiterate and they don’t need to be able to use PIN codes

• Use of Digizen ID card for authentication does not require common language, so it works well in countries with diverse languages or across borders

• Digizen ID card holder does not need smartphone or any other expensive devices, so it is within reach for everyone.

• To register people don’t need to take day off and travel to a city , but Digizen partner agents register people and issue cards in villages where people live

• Privacy by Design - All data is stored in accordance with privacy-by-design principles with end-to-end security and full identity lifecycle protection.
• No vendor lock-in - Owner can replace and procure system parts from different vendors reducing vendor risk. 
• Owner has full control - The registry owner owns the system's data and encryption keys.

• No special hardware - Digizen ID card can be used with any NFC enabled Android device

• Everyone is invited - Freely available SDK for reading cards can be integrated with relying party apps

• Digizen ID is based on NFC smartcards and the system is designed to work without immediate access to the internet - tested and validated in rural Papua New Guinea with low connectivity

• Digizen does not require users to be literate or to know numbers e.g. normal users don’t need to type or read anything and they don’t have PIN codes - tested and validated with illiterate users

Current number of test users being served: 100+

Number of people being served in one year: 20.000 - 40.000

Number of people being served after five years: 10.000.000

Goals within the next year

• ½ year pilot with Asian Development Bank in Papua New Guinea with 20.000 users finished, nationwide rollout to 10 million Papua New Guineans started

• Rollout to couple of Pacific countries with Asian Development Bank started

• Working with UNESCO to provide digital Qualification Passport with Digizen technology

• Target countries agreed with Worldbank and preparations for launch ongoing

Goals within the five years

• Digizen is the number one solution to bring 1 billion people who lack ID to become recognised and included in the formal society

• Flourishing ecosystem of developers building services on top of Digizen digital ID platform

Digizen barriers

• COVID-19, COVID-19, and COVID-19:  limits travel to meet decision makers and to perform field operations in target countries

• Contacts to prospective customers such as government organisations and banks

• Building trust with prospective customers that a small startup is an organisation they can work with and rely on

• Finding ways to accelerate regulatory approval e.g. Regulatory Sandboxes are a great path to get quicker regulatory approval

• COVID-19 has slowed our projects down and as Digizen is income financed that limits financial resources the team has available for product and business development

• Travel restrictions due to COVID-19 are mitigated by advancing all projects as far as possible remotely and by working on new projects to be in “push-button” mode when travel restrictions are relaxed to allow our team to work on-site 

• Contacts to prospective customers by participating in trade fairs and competitions like the Mission billion

• We are building trust with prospective customers by having third party, Pricewaterhouse Coopers, to validate Digizen technology

• Regulatory approval is accelerated by working with partners like Asian Development Bank to facilitate negotiations with relevant regulators

• COVID-19 impact on revenues is mitigated by looking for funding from private investors

Digizen core team is four people. 

Additionally, we have several partners and consultants working on the solution. For example:

• At ADB there are five people supporting the development

• At TRPC there are five consultants working on Digizen Data Governance

• At Pricewaterhouse Coopers six consultants are performing the cyber security audit

• At our partner banks, each bank has dedicated team for Digizen solution

Digizen team members have over 10 years of experience from developing digital services with different angles ranging from service design to rapid prototyping, and from programming to user experience design. The team members have designed in the past Digital ID systems for banks and the team has also experience from the digitalization of he Finnish Population Registry.

The team members have won several awards including Red Dot Design Award in 2019 and Asian Development Bank’s Eureka award in 2020, that recognises the best performing project teams.

Kimmo Koivisto, CEO

• Customer and business developer

• Master of Science in Technology (Industrial engineering)

• CV: https://www.linkedin.com/in/kimmokoivisto/ 

Jaakko Nygren, CTO

• Product and service designer, developer

• Master of Science (Computer Science)

• CV: https://www.linkedin.com/in/jaakkonygren/ 

Timo Kilpilehto, CIO

• Full-stack developer

• Master of Science (Computer Science)

• CV: https://www.linkedin.com/in/timo-kilpilehto-2b439894/

Tuomas Husu, Head of Product

• UX & UI Designer

• Master of Science (Computer Science)

• CV: https://www.linkedin.com/in/thusu/

Asian Development Bank

• Working very closely together as ADB is the Sponsor of Digizen’s Digital ID project in Papua New Guinea

Bank of Papua New Guinea

• Working closely as Bank of PNG will be the owner of Digizen solution being piloted with 20.000 users in PNG

MiBank and Women’s Microbank

• Partner banks in Papua New Guinea, who’s agent network is utilized to register people to Digizen ID system and to provide related services.

UNTIL

• Working together to define a new use case for Digizen ID: verification of educational qualifications and skills

UNESCO

• Proposal to use Digizen technology for the digitalisation of UNESCO Qualification Passport, waiting for go decision

TRPC

• A consulting company specialising in policy and regulatory issues associated with national information infrastructure development

• Working Data Governance for Digizen Digital ID

UNSW Canberra Cyber

• Director of the cyber security center of excellence of The University of New South Wales, is our advisor on cyber security

Pricewaterhouse Coopers

• Contracted to conduct a cyber security audit of the Digizen Digital ID system

Digizen key customers are providers of services where identification is required such as financial services, health services, education, employment and government entities.

Key beneficiaries are people who lack identity documentation as Digizen is inclusive allowing everyone to register and get a Digital ID card to start accessing financial and social services. People don’t need to have a phone and they don’t need to have literacy or numeracy skills to use Digizen ID.

Digizen customers are provided with a Digital ID system and scheme, that provides efficient and secure ways to authenticate offline and online and to perform know your customer process, also for people who lack prior identity documentation.

Agents from Digizen partners such as bank agents, are trained to perform identity verification for registering people with mobile devices and to instantly afterwards issue digital ID cards. This allows onboarding a high number of people and reaching a larger share of the population.

Digizen customers use digital ID for onboarding new customers who have been previously not accessible due to lack of ID documentation. Digizen ID digitalizes authentication, which makes transactions much more efficient and more secure. While Digizen is providing cutting edge digital identification capabilities, it also works in resource-scarce environments and is able to function in offline mode. 

People want a Digizen ID as it is easy to get, low cost and they can instantly start accessing services where identification is required such as opening a bank account. 

Digizen charges a service fee, which is based on the number of active users e.g. X$/active user per year. The service fee is charged from the owner of the Digital ID scheme such as a government entity or banks. 

The development costs of the Digizen system have been paid by the Digizen team investing a substantial amount of their time to the development and from revenue from Digizen’s customers. Hence, Digizen as a company has been profitable from the very beginning.

Digizen revenue from the past 12 months is about 200.000 USD. We have currently contracts in negotiation worth 350.000 USD.

We have received grants worth 12.000 USD from Business Finland, a Finnish innovation funding organisation. 

Digizen is 100% owned by the four founders.

Equity funding of 1M$ is sought by the end of 2020 to accelerate business development for expanding Digizen to more countries.

Digizen estimated expenses for 2020 are 250.000 USD

Mission Billion is an important opportunity for Digizen to help overcome several of the growth barriers, we believe Mission Billion can help to:

• Get more contacts and introductions to prospective customers such as government organisations and banks

• Help validate Digizen as a company and build trust that Digizen is a an organisation with whom governments and big companies can work with

• We look forward to meeting potential advisors who would help us to navigate regulations in target countries

• Maybe Mission Billion will provide new customers for revenue and opportunities to meet with investors working in this domain

Digizen Digital ID is distributed thought agents from partner organisations and we are looking for more partners to work with.

Revenue model is still early days and advisory is sought.

Digizen team members are digital service developers and we would benefit from having board members or advisors with experience from rolling out ID systems and who are experts in regulatory matters.

We would very much like to partner with the World Bank as we believe the World Bank can help advance Digizen solution by working as a broker and sponsor for providing Digital ID systems to countries where current ID systems are not trusted or they don’t cover the entire population.

We would like to partner with financial institutions providing services for unbanked and underserved communities so that they can become Digizen customers. 

We would like to partner with other service and ID system providers in the domain to find out if we can benefit each other businesses,