BEYOND just being officially registered, a digital identity enables all access to government services and participation in society as the country digitalizes.

In its simplest definition, an identity is a combination of physical and behavioral traits that define who you are, such as your name and birthdate.

As of December 2023, more than 82 million Filipinos have been registered in the Philippine Identification System (PhilSys) according to the Philippine Statistics Authority (PSA), and over 70 million have received their physical PhilId or ePhilIDs, with the government intending to complete the distribution of the ePhilID by year's end.

However, assigning the citizens of a country a unified national identity enables more than just identification.

Beyond just an official number and document, identity is also a proxy for inclusion. It is imperative for social, economic and digital inclusion as it provides access to basic human rights such as health care, pensions and social benefits. Without which, citizens are more likely to miss out on a variety of essential services, including access to state programs and services.

For instance, PhilSys verifies the identities of those who have applied for financial assistance under social protection programs, as piloted by the PSA and Department of Social Welfare and Development.

Identity also plays a key role when it comes to ensuring fair and accurate elections. By verifying and confirming that a person is who they claim to be, it could prevent double voting or someone voting under a false identity. Voters are also assured that their votes are counted and not tampered with, leading to greater empowerment and confidence that their votes matter and that election results are legitimate.

Other than locals, nearly 2 million overseas Filipino workers (OFWs) stand to benefit from a national identity, with PSA and Department of Migrant Workers (DMW) having signed a memorandum of agreement to bring PhilSys registration services to returning and departing OFWs.

Lastly, an official identity system also benefits governments. With more citizens registered, governments have a much better chance of accurately understanding their population's demographics, which, in turn, plays an essential role in impactful policymaking.

It is for such reasons that access to a legal identity has been recognized by the United Nations General Assembly as being a fundamental sustainable development goal — ensuring a legal identity from birth to all by 2030.

A natural part of digital transformation

Digitalization is high on the government's agenda, with President Ferdinand Marcos Jr.'s administration pushing for it to provide more efficient services for the people and combat corruption. As the Philippines surges ahead with its digital transformation, a digital ID is a natural part of the digital ecosystem.

The government has reiterated its stance on the importance of digital ID's, reporting that it would be beneficial for the "submission of government records, digital signature use and incorporation of identity to government agencies." The eGovPH app, which integrates various government services into one system, is a prime example.

On top of greater inclusion and efficiency, a digital ID also adds economic value to a country. Research has indicated that an established digital ID program could unlock 50 to 70 percent of an emerging economy's full economic potential if there was a 70 percent adoption rate, while high usage of digital IDs could create about 6 percent economic value of a country's gross domestic product (GDP).

The Philippines is actively modernizing its digital infrastructure, putting in place the foundation for a digital society which brings further benefits to the economy. In 2022, the Philippines' digital economy contributed 9.4 percent to GDP.

Designing a more secure ID system

While the benefits of a national identity are plenty, there also needs to be widespread adoption and trust in the system for all to fully benefit.

Individual identities are created and managed on a foundational identity system, which assigns a unique identifier to each person typically based on the individual's unique biographical data (e.g., name, date and place of birth) and biometrics (e.g., fingerprint). PhilSys is one such example.

These details are validated to establish the uniqueness of an accurate digital identity. The unique identity is then verified against existing data in internal or external systems to prevent multiple or redundant registrations.

Additionally, biometric and biographical data are authenticated against physical documents before, finally, a unique identity is created in the foundational system, and a private unique identity number (UIN) is assigned to the person.

The use of biometrics adds an extra layer of security to one's ID, as it is safer and more convenient than other authentication methods like passwords, PINs and tokens. Such a system is in place for countries such as Singapore, Japan, and Korea, to guarantee security and efficiency.

When using their IDs to access services, people should also know how their personal data is being used and give consent to the use of their personal data. They need to know the purpose of the service; if any personal data is stored, who could consult it, and the ways that they could access their data or request its update or deletion.

An improved foundational ID system would undoubtedly help prevent fraud, enhance security, and enable efficient service delivery. Most importantly, however, it forms the basis for building trust, streamlining interactions, and fostering inclusion in both the digital and physical domains.

Benoit Nalin is the country director for the Philippines at Thales, a French multinational company that designs, develops and manufactures electrical systems as well as devices and equipment for the aerospace, defense, transportation and security sectors.