Building 100% digital state and local governments

During the global COVID-19 pandemic, many systems moved online to limit face-to-face interactions, including within state and local governments. Government processes that required citizens to show up in person, like renewing driver’s licenses or applying for unemployment, are now available partially or completely online. With the familiarity of online interactions—from online shopping to paying bills and booking travel—citizens have become accustomed to sophisticated digital experiences and have high expectations for government interactions. Citizens want an experience that is easily accessible, reliable and transparent.

An example of a fully online, accessible government already exists. Estonia, a small European country of just over one million citizens, has been transitioning to a digital government since 1997. Today, Estonia reports that 99 percent of its public services—including voting, filing taxes and accessing health care records—can be completed online in minutes. Over the past 25 years, Estonia has replaced legacy technology, cut down on ineffective bureaucratic structures and added free hotspots across the country. All these changes have proved to cut down on costs. According to the Estonian government, digitized public services save the country more than 1,400 years of working time since these projects have begun and 2 percent of its GDP annually.

The shift to a digital government can seem daunting for U.S. state and local governments, but Estonia can serve as proof that it is possible. Increasing digital services and improving citizen experience (CX) is crucial not only to meet citizen demand and continue IT modernization goals, but to increase citizen engagement and trust and optimize the federal workforce. Using Estonia as an example, state and local governments can improve CX by simplifying citizen identity, creating a consistent experience and, most importantly, increasing integration.

Simplifying identity
One of Estonia’s first significant steps toward becoming a digital government was creating digital IDs for its citizens. Through a program called e-Identity, every Estonian has an encrypted, digital identity they can access through their mobile phones. They can use their ID for digital signatures, filing e-prescriptions, checking medical records and more. The government claims Estonians can save five days a year by using the digital signature feature alone.

Many states in the U.S. are already considering digital IDs, which supports the transition to a more digital government. In March 2022, Arizona became the first state to launch digital IDs and driver’s licenses that are accessible via mobile devices and allow Arizonians to prove their identities with a simple tap of a smartwatch. Several states intend to follow, including Colorado, Hawaii, Mississippi, Ohio and the U.S. territory of Puerto Rico.

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