The research is part of a new awareness campaign, which introduces the fictional 'nation' of Greenflag whose citizens are victims of overly risk-averse business compliance practices and limitations of existing verification systems. These fail to account for a range of diverse identities and appearances and stereotype individuals based on their nationality's rate of fraud.
"Greenflag may be fictional, but the issue it represents – digital exclusion – is very real, with serious implications. As the digital economy grows, these challenges will only intensify," says Andrew Sever, CEO and Co-Founder of Sumsub.
"Our mission is to empower a digitally inclusive future, which is why we decided to dig deeper into the problem. However, we couldn't realise the true scale of it until we saw these distressing results. Addressing digital exclusion is both a moral necessity and a significant economic opportunity for global businesses and governments. More inclusive verification practices can unlock underserved and underrepresented markets and foster global economic growth, while driving social equity."
Sumsub's latest research, conducted by Catalyst Group, underscores that digital exclusion is both a societal injustice and an economic oversight. Key findings from the research include:
- Over 627 million people are unfairly excluded from or struggle to access essential digital services.
- Greenflag ranks as the third largest 'country' in the world, by population.
- Greenflag's potential untapped purchasing power stands at $1.75 trillion USD.
- Digital transactions for Greenflag citizens could exceed $2.46 trillion by 2028.
- Identification document issues – 243 million individuals struggle to access services due to non-standard or outdated ID documents.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 are left behind due to insufficient skills to navigate digital platforms. This is due to various factors, including providers neglecting to provide sufficiently accessible support.
- Physical appearance changes – 96 million people face verification challenges due to medical conditions, hair loss, facial injuries, or personal decisions like cosmetic surgery and gender transitions.
- Country of origin – over 70 million people are blocked by risk-based exclusions, with businesses often generalizing entire nations as high-risk, unfairly excluding innocent individuals.
Digital exclusion stems from several barriers, often due to verification systems failing to accommodate the diversity of human experiences. Additional research from renowned institutions like Amnesty International highlights that exclusion can be driven by systemic discrimination and repressive governance, which disproportionately affects marginalized groups. For instance, discriminatory policies, barriers for refugees and migrants, and limitations on freedom of expression prevent many from accessing essential digital services. Additionally, economic instability and inadequate social rights further marginalize vulnerable populations, making it harder for them to engage with digital services.
"We understand the real-world hardships faced by those excluded from digital services, therefore our commitment to tackling this is unwavering. Advanced verification technologies are crucial in supporting governments, digital service providers and firms in verifying and onboarding individuals from diverse backgrounds. We are working to provide the technology that will ensure all people can access the digital economy, and urge our peers to do the same," added Andrew Novoselsky, Chief Product Officer at Sumsub.
"We are dedicated to offering innovative products, such as non-document verification, to ensure individuals without conventional identification can access essential services. Crucially, we emphasise the need for further collaboration between policymakers, businesses, and verification platforms as this is vital for building a safe and inclusive digital infrastructure."
For the full whitepaper and more information about Greenflag, please visit: https://greenflag.me/
About Sumsub
Sumsub is a full-cycle verification platform that secures the whole user journey. With Sumsub's customizable KYC, KYB, Transaction Monitoring and Fraud Prevention solutions, you can orchestrate your verification process, welcome more customers worldwide, meet compliance requirements, reduce costs, and protect your business.
Sumsub has over 2,500 clients across the fintech, crypto, transportation, trading, e-commerce and gaming industries, including Bitpanda, Wirex, Avis, Bybit, Huobi, Kaizen Gaming, and TransferGo.
Sumsub has citations in research published by global institutions such as the United Nations and Statista, as well as ongoing consultancy and engagements with INTERPOL.
Notes to editors on methodology
The research methodology for estimating the population of Greenflag, representing those excluded from the digital world, combined online surveys and comprehensive desk research. The online survey, conducted with 1,521 respondents, used automated tools and expert review to ensure high data quality, revealing that 22.88% of individuals face digital access challenges. This figure was extrapolated globally, accounting for 627.3 million digitally excluded people.
Desk research further refined these estimates using global population data, literacy rates, and internet access statistics. Additionally, the study estimated the economic impact of digital exclusion, concluding that the Greenflag would account for €1.57 trillion of the digital commerce market by 2024. Data sources included organizations such as the World Bank, UNESCO, and Statista.
The full methodology is included in the whitepaper.
SOURCE Sumsub
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