The economic case for Inclusive Digital Identity
*Please note that these thought leadership pieces represent the views of the contributing companies and do not necessarily reflect techUK’s own position.
Digital identity strengthens social good, and fuels economic growth by enabling access to essential services, improving trust, and opening new opportunities for innovation. As policymakers, technologists, and business leaders gather for techUK’s Digital ID Campaign Week, it's vital to highlight what is often overlooked: the tangible, real-world impact that inclusive identity systems can have on growth, opportunity, and innovation.
At SQR, we've seen firsthand how a lack of inclusive digital identity creates a significant barrier to accessing services. We believe that designing for inclusion means designing for economic success, and our mission is to ensure that no one is left behind. Drawing on recent research, collaborations, and our own experiences, this blog aims to shift the conversation from a hopeful vision to a concrete, actionable plan - demonstrating that designing a truly inclusive digital world can unlock new opportunities for everyone.
Introduction
Digital identity is the gateway through which people access jobs, financial services, healthcare, social support, and civic participation. A 2025 sectoral analysis by the UK Government found that while 44% of consumers have accessed a digital identity product at least once, only 20% rely on reusable identities, and exclusion persists for significant demographic groups. Each percentage point of exclusion translates into untapped markets, lost productivity, and increased costs for businesses and the public sector. When segments of society lack access to secure, easy-to-use digital identity solutions, the economy suffers.
Women in Identity’s Code of Conduct research shows that bias and gaps in digital identity systems impact women, minority groups, and the disabled by hindering their access to essential services. This exclusion is a moral challenge, and a missed commercial opportunity.
How inclusion drives growth
Research published in 2025 further reveals that enhancing digital inclusion, specifically by broadening access to digital identity results in clear economic returns:
Financial access: Inclusive identity systems allow underserved communities to open bank accounts, access credit, and participate in e-commerce. The Women’s World Banking insights highlight that digital inclusion for women leads to improved economic outcomes and self-sufficiency.
Workforce participation: Removing digital barriers enables people to verify qualifications, register for employment, and engage in remote work. Every step towards wider digital adoption brings new workers and entrepreneurs into the economic mainstream.
Public sector efficiency: Governments that design accessible digital ID schemes reduce fraud, streamline service delivery, and lower administrative costs. KPMG’s 2025 review identifies digital identity as a key enabler in unlocking billions of pounds of public sector savings, and driving new digital economy sectors.
Innovation and competition: As more diverse groups access digital services, consumer demand grows for new products tailored to broader needs, spurring competitive innovation and market expansion.
If digital identity platforms work for everyone, more economic value is released.
The cost of Exclusion
Exclusion also has quantifiable costs. According to Women in Identity, the financial impact of excluding people from vital services, and participation in the digital economy manifests in higher fraud rates, increased manual overheads, and reputational risks for providers and governments. When identity systems fail to account for disability, language barriers, or cultural difference, the economic damage accumulates.
The UK government’s own Digital Identity Sectoral Analysis (2025) found that up to 9% of surveyed groups prefer not to use digital ID. These individuals are, effectively, locked out of the fastest-growing parts of the economy. Conversely, markets where inclusive identity is mandated show lower drop-off rates, higher digital service uptake, and better customer retention.
SQR's commitment
At SQR, we believe that true innovation means designing for real people in the real world. Since signing the Digital Poverty Alliance Charter for Digital Inclusion, and working with Isle of Man charity Sight Matters, we’ve seen firsthand how adapting technology to fit the needs of all users drives measurable impact. Our pilot with Sight Matters, has revealed critical usability challenges faced by visually impaired users, insights that are now shaping our product roadmap to ensure equitable access.
We’ve partnered with the DPA, and our upcoming initiative addresses device access, and skills and confidence gaps - the full spectrum needed for digital inclusion. Every new user, every barrier removed, is a potential contributor to the digital economy.
Designing economic growth by design
SQR’s experience shows that economic growth is not a passive outcome, it must be actively designed through inclusive principles.
Embed representation and accessibility from inception: use codes of conduct, real user feedback, and regular testing.
Mandate inclusion as a metric for success, not a nice-to-have.
Partner closely with advocacy and user-led organisations to identify and close practical gaps.
Avoid one-size-fits-all: build for the edges as well as the centre.
The evidence is clear, a digital world that works for everyone is more productive, more innovative, and more resilient. Inclusive identity systems are not only the right thing to do, they are the smart thing to do for the future UK economy.
