Canada’s recent 47th place ranking on the 2024 United Nations’ E-Government Development Index (EGDI) is a wake-up call for our technology and public policy leaders. Noting Canada’s low EDGI ranking, and significant fall from 2nd to 6th among G7 nations, Auditor General of Canada Karen Hogan’s recent report on “Digital Validation of Identity Access Services” concluded that Canada is falling behind in e-government development.
The EGDI assesses government readiness and capacity to use advanced technologies across online services, telecommunication infrastructure, and human capital. The leading countries on the Index — including Denmark, Iceland, the United Kingdom, and Australia — have one important thing in common: a single front door to government services enabled by digital credentials.
The Auditor General noted there are as many as 90 separate sign-in systems managed by individual federal government departments. While this fragmentation may not seem significant to the average Canadian who files taxes once a year, the inefficiencies become glaringly obvious when citizens engage with multiple departments simultaneously. The result is a system that not only is slow and frustrating, but one that fails to meet modern expectations for seamless, integrated service delivery. Today, support for digital credentials is consistent and widespread, with 9 out of 10 Canadians expressing their approval.
Countries that successfully implement digital credentials could grow their GDP by 3 to 13% by 2030[1]. India’s world-leading Aadhaar system, has enrolled 1.35 billion people and authenticated 8.2 trillion transactions[2], and has significantly improved service delivery and security. A conservative estimate suggests that trusted digital credentials could contribute at least 1% of GDP, or CAD $15 billion, to Canada’s economy.
Canada has been trying to improve. In 2021, Treasury Board President Anita Anand laid the groundwork for a trusted digital identity platform, and in 2023, Minister of Citizen Services Terry Beech renewed the commitment to seamless service delivery. Programs like the Federal-Provincial-Territorial Digital Trust and Credentials Program and the Jurisdictional Experts on Digital Identity (JEDI) table are uniting efforts across jurisdictions.
The Auditor General has called for more national leadership, interoperability, and resource planning. In addition, EY teams have identified three actions Canada can take to advance the government’s digital credentials.
Follow provincial leading practices
BC’s Digital Trust program is iteratively developing an open-source digital credential platform that helps program areas rapidly adopt digital credentials. This platform is used in mines permitting and business registration and is currently being piloted to create new opportunities for lawyers to access sensitive court documents online. The federal government could introduce services with smaller populations, such as recreational licences or student loans, and then scale up.
In the private sector, Air Canada’s digital passport initiative is a recent example of successful digital credentials in Canada, making processes easier, safer, and more user-friendly, with strong public support during its pilot phase.
Lead with trust
Earning citizens’ trust is essential. The Human Technology Foundation’s report, “Unlocking Digital Identity,” lays out how government can foster trust: digital credentials must be voluntary, user controlled and privacy focused, governed transparently, and allow for interoperability.
Digital credentials offer a safer, more privacy-focused alternative to traditional systems. Advanced encryption and multi-factor authentication allow individuals to share only necessary information, reduce data exposure, and minimize unauthorized access.
Centre around citizens
Whether it’s picking up a package at the post office, buying alcohol, receiving care at the dentist or hospital, or closing on a home purchase, Canadians often face cumbersome and fragmented systems requiring multiple pieces of identification and in-person visits. A citizen-centred approach prioritizes user needs. Digital credentials can simplify these interactions, allowing individuals to share only the necessary information securely while reducing time and effort in their daily lives.
Conclusion
A unified, trusted, citizen-centred digital identity system is within Canada’s reach. By embracing this challenge with energy, collaboration and innovation, Canada can create a system that empowers its citizens and earns a place as a world leader in digital identity.
EY strongly supports Canada’s work on a digital credentials platform. Digital credentials are a critical component of our nation’s digital public infrastructure that can unlock new economic value by allowing people to safely and conveniently share trusted information about themselves when interacting online.
[1] Digital identification: A key to inclusive growth
[2] https://www.uidai.gov.in/aadhaar_dashboard/index.php
Co-authored by:
Janice Horne
Janice is a Partner, Global Client Service Partner, and Federal Account Leader at EY, with over 30 years of experience in both the public and private sectors. She is recognized for her expertise in driving impactful change, aligning diverse stakeholder interests, and leading high-performing, inclusive teams. Passionate about diversity and inclusion, Janice is committed to delivering value for Canadians and fostering innovative solutions.
Jen Mossop Scott
Jen is a Partner in EY’s Technology Transformation Consulting practice, specializing in digital and cultural transformation, customer experience, and aligning technology with business needs. With a focus on mentoring women in business and technology, she excels in modernizing technology and data strategies, shaping technology investment plans, and driving impactful organizational change.
Rohit Boolchandani
Rohit is a Partner at EY and COO of EY Design Studio. As a former COO and co-founder of FreshWorks Studio, he played a pivotal role in transforming it into Canada’s leading Agile Application Development studio before its acquisition by EY in 2022. With expertise in business operations, strategic growth, recruitment, and resourcing, Rohit also holds an MBA from the University of Victoria.
