UK Finance has announced it is working with some of the UK’s largest banks and building societies on a new digital verification service that would allow customers to prove details such as their identity, age or address directly through their banking app.

The industry body said it is supporting Barclays, HSBC, Lloyds Banking Group, Nationwide Building Society, NatWest Group, and Santander as they develop the digital identity verification platform.

The tool aims to reduce the need for consumers to repeatedly submit physical documents such as passports, driving licences, or utility bills when accessing online services. Instead, customers would be able to share verified information held by their bank or building society through their mobile banking app.

According to UK Finance, customers would retain control over the process, with information shared only with explicit consent and on a transaction-by-transaction basis.

Potential use cases include online age verification, digital account opening, e-commerce purchases and property transactions. The service could also help businesses verify customers more efficiently while reducing fraud risks linked to fake accounts and synthetic identities.

UK Finance said the project has already completed a proof-of-concept phase using synthetic data to assess the technical, legal, and operational requirements of a potential service. The next stage will involve a live pilot in a controlled real-world environment, which is expected to begin in the coming months.

The organisations involved are working with technology firm Select ID, which is leading the technical design and delivery of the project.

While the initiative is separate from the government's broader digital identity programme, UK Finance said it aligns with the UK's digital verification services trust framework and is focused on commercial and retail applications rather than public sector use cases.

The industry body is also inviting retailers, digital platforms and other organisations involved in digital identity and customer verification to participate in future pilot activity.

"The financial services sector is ideally placed to deliver a secure and trusted digital verification service,” said Jana Mackintosh, managing director of payments and innovation at UK Finance. “Using already verified information, shared only with the customer's explicit consent, could help make digital transactions safer, quicker and more convenient as well as ensuring customers have full control over how their data is used."

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