Digital Identity Governance for Inclusive Financial Participation in Rural Procurement Ecosystems

Abstract

-Rural and small-scale vendors frequently face barriers to participating in enterprise procurement
systems due to stringent and inflexible digital identity requirements. These barriers limit their access to financial
services, procurement markets, and government-led development initiatives. This paper proposes a comprehensive
digital identity governance framework designed specifically for rural procurement ecosystems. The framework
integrates decentralized identifiers (DIDs), mobile-first onboarding workflows, and verifiable credentials to support
secure vendor registration, identity verification, and financial eligibility assessments. It establishes governance rules
for identity issuance, lifecycle management, interoperability, and compliance across procurement platforms and
banking partners. A simulated field deployment was conducted using a sample group of rural vendors, comparing
their onboarding time, financial linkage success rate, and eligibility verification with traditional centralized
processes. Results indicate significant improvements in onboarding efficiency, error reduction, fraud mitigation, and
vendor inclusion. Enterprise Resource Planning (ERP) integration further ensures seamless procurement transactions
and automated eligibility checks. The study demonstrates that digital identity governance, when tailored to rural
conditions, can reduce systemic exclusion and foster equitable participation in procurement supply chains. The
findings highlight the importance of adopting decentralized, transparent, and human-centric identity models to
advance rural financial inclusion and strengthen digital trust within procurement ecosystems.