Why the UK banking sector and FCA are banking on digital IDs in 2023.

New IDnow whitepaper, ‘Identity crisis: The future of digital IDs in the UK’ explores how a historical hesitancy to adopt identity cards has informed the UK government’s unique approach to digital IDs.

The British public’s relationship with identity cards is complicated, to say the least… (read more about it in the ‘Identity crisis? The future of digital IDs in the UK’ whitepaper) 

Although there are no plans to launch a digital ID card system per se, the UK government has released a Digital Identity and Attributes Trust Framework – a set of rules and standards designed to establish trust in digital identity products.  

If, as it is hoped, the Framework can go some way to encourage UK businesses to implement digital ID solutions, and more consumers to use them, it will boost the country’s £149 billion digital economy by enabling smoother, cheaper and more secure online transactions, and save businesses considerable time and money.  

But will the British public change the habits of a lifetime, and embrace digital identities and digital identity verification? The government and the Financial Conduct Authority are banking on it. Indeed, the very future of the UK economy depends on it. 

The UK decided to go down a different route than much of Europe when it came to identity verification. An unfortunate consequence of this was that the means of identity verification, such as a driving license document, was simply not as secure or robust as national ID cards, especially biometric ‘smart cards’ that feature secure, contactless chips.

Lovro Persen, Director of Document Management and Fraud at IDnow

“The Trust Framework will go some way to resolve some of the online fraud issues in the UK, but not totally. With more digital identity verification, the focus will then naturally shift to who exactly are the identity verification solution providers, and can they be trusted,” Persen added.

Changing of the guard: What’s in a name? 

The pandemic, and especially the NHS COVID-19 app, which made it easier to verify a user’s vaccination status and identity, has appeared to have radically changed the British public’s opinion on digital identities and digital verification solutions. They are now more receptive, more familiar, and more curious about how such technology could work in other arenas. It has also made them more discerning. Indeed, as the British public increased their digital footprint and reliance on online services, so too did their expectation for quick, safe and secure onboarding processes. What was acceptable before the pandemic is now no longer. 

There is, however, one thing that has remained unchanged in recent years – a lack of trust in how users’ data is being used, and a lack of trust in the privacy and security of the system.  

By including “Trust” in the name of the Framework, it appears the UK government has finally recognized that trust (or rather a lack of it) has been a major and constant obstacle in the adoption of identity systems in the UK.  

The obvious question, therefore, is how does the UK government plan on gaining it? 

The ‘Identity crisis? The future of digital IDs in the UK’ whitepaper, available to download now, answers this alongside other questions on the future of digital IDs and digital identity verification in the UK. 

It also explains how digital identity verification solutions can unlock valuable economic and societal opportunities, and help organizations meet strict security standards and regulatory requirements without compromising on customer conversions or the consumer experience. 

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Why the UK banking sector and FCA are banking on digital IDs in 2023. 1

Jody Houton
Content Manager at IDnow
Connect with Jody on LinkedIn

 

Identity crisis? The future of digital IDs in the UK.

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