The Investing and Saving Alliance (TISA) has been awarded a £340,000 grant from Innovate UK to help accelerate the development of its Digital ID scheme, which will create a single, reusable, secure online identification for individuals.

Specifically, the grant will be used to develop and test consumer proofs of concept and the proposed technical approach. This will ensure that the scheme is accessible to a broad range of consumer groups, including vulnerable customers, and that the final product meets industry requirements.

COVID-19 has accelerated the need and use of online services as face-to-face services have been discouraged, resulting in a greater need for consumers to verify their identity remotely. Digital ID is a key enabler for accessing new digital financial services and transforming existing services such as product applications, switching and consolidation; for example pensions.

Being able to simply and securely provide identification when managing finances delivers consumer benefits such as convenience, better security and increased switching, which leads to better competition for consumers, stated TISA. Financial services firms should get lower Know Your Customer (KYC) costs, the ability to build transformative service and lower risk.

Owning a Digital ID means consumers can take greater control of their data and finances, which should also lead to a reduction of financial crime. The Open Identity Exchange has estimated that the use of Digital IDs will prevent up to £8.5 billion in identity-related fraud per year, and could save £1.5 billion per year by improving efficiency of the KYC process.

The project will also help deliver a number of government priorities including supporting the BEIS Smart Data initiative, the National Data Strategy and the Financial Conduct Authority’s Open Finance strategy.

Harry Weber-Brown, director of digital innovation at TISA, said: “Customers will experience a secure, quicker and more simple journey when using financial services online leading to faster opening of accounts, less time managing passwords, more control of data, and ultimately better management of their finances.

"Providers will consequently benefit from improved customer satisfaction, higher conversion rates, and lower costs in account opening and product transfers, which could lead to the unlocking of economic value equivalent to three per cent of GDP by 2030."

Digital infrastructure minister Matt Warman said: “Digital technology is helping us through the pandemic and continues to improve the way we live, work and access vital services.

"We want to make it easier for people to prove their identity securely online, where they choose to, so transactions can become even quicker - it has the potential to add billions to our economy."

TISA has over 200 members in the UK financial services industry, through which it has convened a group of major banks, insurance companies, identity providers and other members to form a Governance Steering Committee that is responsible for setting the strategic direction of the project.

The group is calling to hear from parties interested in being involved on the development of the scheme.

Share Story: