A new analysis estimates that a Norwegian digital identity wallet could generate benefits of up to one billion kroner over ten years, driven by digital credentials and more efficient services.
Illustration photo: Envato Elements.
A fresh socio-economic analysis commissioned by the Directorate of Digitalization (Digdir) points out that a digital identity wallet can trigger gains in the range of NOK 921—949 million over a ten-year period, measured in present value. The gains come from more efficient processes, fewer manual controls and less time spent for citizens, businesses and the administration. In addition come non-priced effects such as better privacy and lower risk of abuse, which could mean the real benefit is significantly higher than the figures in the analysis suggest.
The report shows that digitizing current physical evidence is among the heaviest drivers of the gain potential. A digital driver's license and vehicle license is estimated to bring about NOK 395 million in gains, while a digital certificate of financing in housing trade can contribute about NOK 120 million. Other evidence such as health insurance cards, HMS cards, age and honours cards and residence certificates are also highlighted as candidates where a digital version will be easier to use and update than current paper and plastic solutions.
The analysis distinguishes between pure digitisations of existing cards and digital evidence that streamlines entire processes. In the last category we find, among other things, authorisation of health professionals, confirmation of the right to study, EU/EEA registration, police certificate and proof of financing related to housing trade. For the user, a digital wallet can reduce latency and the number of joints, while public and private actors can automate parts of the control work and reduce the risk of errors and misuse.
The digitisation takes place within the framework of the EU's updated eIDAS 2.0 regulation, which obliges member states to provide a free digital identity wallet to citizens. According to Digdir, the wallet should be able to store a variety of evidence — from driver's licenses and HMS cards to membership certificates and tickets — and work across borders. A key premise is that usage should not be traceable to map the behaviour of the owner of the wallet, which elevates privacy and security to part of the value proposition itself.
Digdir stresses that the introduction of the wallet should take place step by step, with the most requested services first and in close cooperation between public and private actors. Experiences from Denmark, Belgium and Sweden, which also start with the most used services and pay great attention to privacy, underlie the recommendations of the analysis. The costs of developing and introducing the wallet itself are not part of the investigation, and Digdir is now investigating, together with the Police and Immigration Directorate, various concepts for how Norway should organize the solution.
