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Growth Drivers | Updated on September 20, 2025

The power and promise of digital identity

The number of digital identity verification checks is expected to reach 86 billion during 2025, according to Juniper Research.

And no wonder. Digital identity has become a crucial part of our everyday lives, shaping how we interact and navigate today's digital landscape, from logging into apps to accessing vital healthcare to conducting a secure financial transaction.

Its significance in today’s world is driven by several factors, including the proliferation of online services, the rise of cyber threats, the evolution of regulatory landscapes, and the quest for greater inclusivity and accessibility.

As online activities increase, so do cyber threats

In the digital world, our online interactions often require us to confirm who we are. When properly established, digital identity serves as a credible and trusted source of verification for online users. If implemented poorly, however, digital identity could put our privacy and the security of our personal information at risk.

Identity theft, fraud and data breaches have become prevalent, with malicious actors constantly seeking to exploit weaknesses. Strong digital identity systems incorporate multi-factor authentication, biometrics and other advanced techniques to safeguard against these threats.

The importance of digital identity in cybersecurity cannot be overstated, acting as the first line of defense against unauthorized access and ensuring that only legitimate users can perform certain actions.

Regulatory compliance starts with digital identity

Governments and regulatory bodies worldwide are recognizing the importance of digital identity and are instituting frameworks to govern its use.

For example, the European Digital Identity Regulation (eIDAS 2.0) is a new regulatory framework that establishes a set of rules and standards for electronic identification and trust services in the member countries of the European Union. Similar regulations around the world require organizations to implement robust digital identity trust frameworks that protect privacy by design and power the digital economy.

Regulations such as the General Data Protection Regulation in Europe, Australian Privacy Principles and the California Consumer Privacy Act in the United States mandate stringent data protection and privacy measures. These regulations require organizations to implement robust digital identity systems to comply with legal standards, protect user data and avoid hefty penalties.

Compliance with these regulations also necessitates transparent and secure handling of digital identities, ensuring that users have control over their personal information.

DXC manages 450M+ digital identities for employees, partners, customers, citizens, software bots, smart agents, automated scripts, IoT devices and APIs.

Promoting inclusivity and accessibility is critical

In many parts of the world, individuals lack formal identification, which restricts their access to essential services such as banking, healthcare and education.

Digital identity can bridge this gap by providing a means for these individuals to authenticate themselves and access services digitally.

Initiatives aimed at creating universal digital identity systems demonstrate how digital identity can empower billions, enhance service delivery, and promote socio-economic development.

Unleashing the potential of digital identity for business

Putting digital identity at the center of an organization brings concrete benefits.

For example, one of the most immediate and tangible benefits is the enhancement of customer experiences. Organizations can create seamless, personalized interactions by using robust digital identity systems. Customers can access services quickly and easily, without the friction of repeated identity verifications.

Digital identity systems can also help companies streamline internal processes, leading to substantial cost savings and operational efficiency. Automated identity verification reduces the need for manual checks, minimizing human error and accelerating service delivery.

In banking and financial services, digital identity verification can shorten the customer onboarding process from days to minutes. This efficiency not only lowers operational costs but also reduces the risk of fraud and enhances the overall customer experience.

Digital identity also opens new revenue streams and business models. For instance, businesses can offer identity verification as a service to other companies, using their expertise in secure identity management.

This not only diversifies revenue sources but also positions the company as a leader in the digital identity space. Digital identities also enable the creation of new digital services and platforms, such as secure online marketplaces, digital wallets, and personalized digital experiences, expanding business opportunities and market reach.

Digital identity systems also provide valuable data and insights that can drive strategic decision-making. By analyzing customer identity data, businesses can gain a deeper understanding of customer behavior, preferences and needs.

Implications for the future

Digital identity is expected to undergo further advancements and changes as emerging technologies such as AI, internet of things (IoT) and decentralized identity (where people can easily and securely control their own digital identities) hold the potential to reshape digital identity, providing new possibilities for authentication and personalization.

For example, the IoT ecosystem comprises billions of interconnected devices, each requiring secure and reliable authentication to ensure seamless communication and data exchange. Digital identity provides a secure and scalable means to authenticate devices and users within IoT networks.

By ensuring that each device has a unique digital identity, businesses can prevent unauthorized access and ensure data integrity. This is particularly critical in industries such as healthcare, smart cities, and industrial automation, where secure and reliable device interactions are paramount.

In smart homes, digital identity can ensure that only authorized users and devices can control home automation systems, enhancing security and user experience.

AI systems rely heavily on data to function effectively, and digital identity plays a crucial role in ensuring the accuracy and security of this data. By providing authenticated and verified user identities, digital identity helps maintain the integrity of data inputs used in AI models.

This is particularly important in sensitive applications such as healthcare, finance, and personalized marketing, where the accuracy of AI-driven insights can have significant implications.

Digital identity can also enable more personalized AI experiences by securely linking user preferences and behaviors across different platforms, enhancing the overall effectiveness of AI solutions.

Companies that can give customers the confidence to transact safely and securely will have a powerful edge over the competition when it comes to winning their customer’s trust. To do that securely, zero trust principles, which rely on continuously verifying identities to protect systems and data, become essential.

And digital identity solutions incorporating biometrics, multi-factor authentication and behavioral analytics will be critical in defending against evolving cyber threats. These technologies ensure that only legitimate users can access sensitive information and systems, reducing the risk of data breaches and cyberattacks.

The big picture

A secure and trusted digital identity has transformed the way we interact in the digital age. And it will continue to adapt and grow as AI and other technologies become more integrated into everyday life.

DXC Technology's digital identity solutions are designed to deter cyberattacks, meet regulatory compliance and nimbly adapt to new ways of doing business.

And our more than 3,500 security experts are dedicated to keeping customer data secure — every hour, every day. We take pride in securing the critical systems that organizations in different industries rely on, ensuring tailored security solutions to meet their unique needs.