Digital Public Infrastructure

Digital Public Infrastructure (DPI) is a set of shared digital systems, often government-backed, that function as a foundational layer for society. It comprises three core pillars: a digital identity layer for verifiable identity, a payment layer for real-time fund transfers, and a data exchange layer for secure, consent-based data sharing. The implementation of DPI is governed by robust standards and regulations. For instance, the EU's eIDAS Regulation ((EU) No 910/2014) provides a legal framework for electronic identification and trust services. For data privacy, compliance with regulations like GDPR, particularly Article 20 on data portability, is crucial. Adopting a Privacy Information Management System (PIMS) based on ISO/IEC 27701 helps organizations manage privacy risks when leveraging DPI. Unlike private platforms (e.g., social logins), DPI is designed as a public good to foster interoperability, competition, and innovation.

Enterprises can apply DPI in risk management through a three-step process. First, strategic integration: identify internal processes like customer onboarding and connect them to national DPI components via APIs. Second, compliance automation: leverage trusted digital identities from DPI to automate Customer Due Diligence (CDD) and Know Your Customer (KYC) checks, ensuring compliance with Anti-Money Laundering (AML) regulations and reducing manual errors. Third, enhanced data governance: use the DPI data exchange layer to securely access verified customer data with explicit consent, minimizing fraud risk and ensuring adherence to data protection principles. For example, financial institutions in Singapore use the national digital ID, Singpass, to reduce account opening times from days to under 15 minutes, achieving a 99.9% accuracy rate in identity verification and significantly lowering fraud risk.

Taiwan enterprises face three key challenges in adopting DPI. First, infrastructure fragmentation: unlike nations with a single national ID, Taiwan has multiple digital identity tools, requiring complex integration efforts from businesses. Second, regulatory complexity: leveraging data exchange platforms like MyData demands strict adherence to Taiwan's Personal Data Protection Act, creating significant legal risks if not managed properly. Third, user trust deficit: public skepticism regarding government-managed data platforms can limit the adoption rate of DPI-enabled services. To overcome these, enterprises should adopt an identity federation architecture based on open standards (e.g., OIDC), implement and certify a PIMS based on ISO/IEC 27701 to demonstrate robust data governance, and start with high-convenience, low-sensitivity applications to build user confidence.

Winners Consulting specializes in Digital Public Infrastructure for Taiwan enterprises, delivering compliant management systems within 90 days. Free consultation: https://winners.com.tw/contact