FB pixel

UK relying parties unclear on value of digital IDs

OIX and Daon report shows sobering disconnect
UK relying parties unclear on value of digital IDs

Relying party organizations in the UK are uncertain of how to leverage the value of digital IDs according to Relying Party Views on Adoption Readiness by Open Identity Exchange (OIX) and digital identity trust company Daon. The research took place during May to October in 2023 and included 14 respondents from 8 sectors and various use cases.

The research showed that technical language adds confusion and makes respondents associate digital IDs with complexity. All participants in the study described digital Identities differently, with findings showing that the more technical and nuanced language used, the greater risk that key participants will be disconnected.

Organizations instead want to see applications of digital IDs that highlight the value of use cases and the impact on end user experience. In the gambling industry, speed and compliance are key priorities. “Our primary goal is to identify users fast. In a lot of jurisdictions, the customer can’t transact with us until we verify that individual,” said a respondent in the gaming sector.

Some respondents wish there was a national digital ID system in the UK that could standardize reusable identities.

“From a strategic, business, and technical perspective, we are in favor of digital identity,” said a respondent in regards to onboarding for non-banking financial services. Digital identity shows promise in simplifying KYC checks. The lack of a national digital ID system in the UK is “potentially a hindrance. A well-organized, well-run, and potentially well-recognized scheme would really help.”

Those in regulated sectors wanted to know that regulators were comfortable with digital IDs being implemented in their risk frameworks.

If a company relies on a digital identity provider in the absence of a system for approval by a government or other body, “then that carries a high risk of inaccuracy and that is not necessarily an advantage for the business,” said a respondent in regards to risk assessment for home rentals.

Value explanations, the use of plain language, demonstrating use cases, and demonstrating risk framework compliance are critical in building confidence in digital IDs, OIX and Daon found.

“Our research shows clearly that storytelling, cross sector cooperation and regulatory approval is critical,” says Geraint Rogers, who works in customer success for market SME identity and risk for Daon, in an announcement. “We must highlight the clear value of digital identity over incumbent solutions. We must also focus on user and business outcomes and less on the technology itself.”

Rogers led a panel exploring the diverse ways in which digital ID is used by relying parties at OIX’ Identity Trust 2023.

Article Topics

 |   |   |   |   | 

Latest Biometrics News


Challenges in face biometrics addressed with new tech and research amid high stakes

Big biometrics contracts and deals were the theme of several of the stories on that drew the most interest from…


Online age verification debates continue in Canada, EU, India

Introducing age verification to protect children online remains a hot topic across the globe: Canada is debating the Online Harms…


Login.gov adds selfie biometrics for May pilot

America’s single-sign on system for government benefits and services, Login.gov, is getting a face biometrics option for enhanced identity verification…


BIPA one step closer to seeing its first major change since 2008 inception

On Thursday, a bipartisan majority in the Illinois Senate approved the first major change to Illinois Biometric Information Privacy Act…


Identity verification industry mulls solutions to flood of synthetic IDs

The advent of AI-powered generators such as OnlyFake, which creates realistic-looking photos of fake IDs for only US$15, has stirred…


Idemia discusses faster police operations, improved outcomes with livescan biometrics

Biometrics, and fingerprints in particular, have long been one of the pillars of forensics work performed by police and crime…


Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Most Read From This Week

Featured Company

Biometrics Insight, Opinion

Digital ID In-Depth

Biometrics White Papers

Biometrics Events