Digital Identification Is Gradually Becoming The Building Block Of Different Startup Models
Technology is as revolutionary as it can get. It is the reason why we are witnessing the transformation of the market across all spheres, acquainting us all with a new age of efficiency and effectiveness. Disruptive, they say, the technology is. More cognizant veterans know that it is the data and with data, its identification, classification, and tabulation that is truly disruptive. Data has become the new oil and the new gold, after all.
However, all data becomes insignificant unless we are able to trace back to its origin as well as where it is applied or can be applied. So, it goes without saying that since customer is the most integral element for any business' success, digital identification becomes an integral part of all businesses, especially the ones who rely on the internet and digital technologies. Digital identification, therefore, is more integral for startups than it is for any other business. Let us try and understand how.
Understanding the curious case of data and how it builds superior business intelligence
To begin with, let us discuss what startups essentially are and how they operate. Startups technically are the businesses that introduce new services and products within the market. Fundamentally, they are the businesses operating in the current landscape and enabling the broader market to transition into the future. Today, this disruptive transition is being channelized through tech-driven startups via the internet.
The advancement in technology and its adoption has not only created challenges of such nature, they have also created solutions that enable us to address them
The best part about startups is that they have high scalability and grow at a rate which goes multi-fold as compared to the industry. This is a direct result of the adoption of digital technologies by both them as well as their customers. At present, internet penetration has already crossed the 4.5 billion-mark, growing over 1,157 percent as compared to the 2000 figure with 58 percent global adoption. This has created a novel market for businesses who not only leverage the tech-driven approach to bring superior work productivity, but also to acquire and cater to their customers.
This brings about a win-win scenario wherein customers can avail their desired solutions at the touch of a button. Likewise, if they don't like a product or a service, they can easily switch over to what a platform's closest competitor has to offer. However, this also requires easy onboarding with less number of bottlenecks and even less turnaround time, because the modern generation neither likes either of the two. This is where the need for easy customer acquisition comes into the picture.
Today, traditional paper-based identification is gradually becoming archaic, in convenient, and unsafe. Do you know why? Because, we are in this new and exciting era of digitalisation. The ways in which we interact, shop, trade, and transact show a big leap from analog to the digital, in the rapidly growing digital identity-centric business environment. We are now able to confirm our identity without providing additional paper documents with intense safety and security.
Business models, especially the newage ones like startups, will need advanced technology, and a relevant & timely value proposition, as well as a transparent user base. Maintaining a balance between onboarding a digital customer and protecting the sensitive user information will define the future businesses and it is evident that most startups are adopting the digital approach.
Ultimately, irrespective of the market vertical that a startup is catering to, what it primarily needs is an easy and seamless onboarding process. Despite the fact that digital technologies make it considerably easier to onboard a customer, the sheer nature of digital domain and the wide ranging threats that prevail in it require a secure onboarding process. So, having an impenetrable digital identification solution is a must have for all startups.
The advancement in technology and its adoption has not only created challenges of such nature, they have also created solutions that enable us to address them. Avant-garde solutions like Edo that effectively mask the sensitive data using Machine Learning (a subset of Artificial Intelligence) come across as great relief for all of its users. While on one hand, the businesses can work with the digital identity, they are also safeguarded from the risk of running into compliance issues. Such solutions are adding substantial value to the Aadhaar infrastructure, which now has more than 123 crore Indians under its ambit. Using these solutions, the Indian startup industry is able to better tap the prevailing digital opportunity on both the national and inter-national levels.
This also enables the patrons of such solution providers to become more cost-effective and time-efficient. Technically, the cost of conducting an identity check with Aadhaar through the physical means costs around Rs. 100, which is instantly reduced to Rs. 15 when the KYC is done digitally. This is precisely the reason why cutting-edge solutions like e-KYC, e-sign, e-COS (Electronic Customer Onboarding Solution) and Aadhaar based subsidy management solutions are currently being adopted in India at scale (including the state governments of Telangana and Uttar Pradesh alongside private business entities).
At large, this is unlocking unprecedented productivity within the nation and empowering its startup segment with the desired technological impetus. Simultaneously, it is creating superior visibility within the market through a non-intrusive, tech-driven approach.
India, today, is at an interesting juncture where it has the potential to drive global transformation via indigenous state-of-the-art solutions. It is creating a scenario wherein its rich and dynamic workforce as well as geographical diversity has enabled the nation to analyze different use cases at both macroscopic and microscopic levels. The nation, or rather its startup segment, can utilize this acquired expertise for perfect execution of such technological solutions globally. Ultimately, empowering the entire globe with `Made in India' solutions.