On World Inclusion Day, Sumsub reveals a startling statistic: 627 million individuals globally are barred from essential digital services, representing what they term the fictional 'Greenflag,' the world's third-largest nation by population after India and China. This digital nation embodies the consequences of overly cautious business compliance practices and outdated verification systems.
The research highlights that the untapped economic potential of this group amounts to $1.75 trillion, with potential digital transactions for Greenflag citizens projected to exceed $2.46 trillion by 2028. Despite progress toward a digitally integrated economy, particularly in Southeast Asia, the digital divide continues to widen, emphasizing the urgent need for collaboration among policymakers, businesses, and verification platforms to create an inclusive digital infrastructure.
"Greenflag may be fictional, but the issue it represents – digital exclusion – is very real, with serious implications," states Andrew Sever, CEO and co-founder of Sumsub. "Addressing digital exclusion is both a moral necessity and a significant economic opportunity for global businesses and governments."
The research, conducted by the Catalyst Group, reveals the key barriers contributing to this exclusion. These include:
- Identification Document Issues: 243 million individuals struggle to access services due to non-standard or outdated ID documents.
- Lack of Digital Literacy: 219 million people lack the necessary skills to navigate digital platforms.
- Physical Appearance Changes: 96 million individuals face verification challenges due to medical conditions or personal choices.
- Country of Origin Discrimination: Over 70 million individuals are excluded due to generalized risk assessments of entire nations.
The findings underscore that digital exclusion is a societal injustice and an economic oversight. Discriminatory policies, barriers for refugees and migrants, and insufficient support for marginalized groups exacerbate the issue, hindering access to vital services.
Andrew Novoselsky, Chief Product Officer at Sumsub, emphasizes the need for innovative solutions: "We are working to provide the technology that will ensure all people can access the digital economy." He calls for enhanced collaboration between stakeholders to build a safe and inclusive digital environment.
The implications of this research are clear: tackling digital exclusion is not just a moral imperative but a pathway to unlocking significant economic potential for businesses and governments alike.
