UK digital identity scheme needs to consider commercial viability, panel says

Commercial viability is important for the UK’s digital identity scheme, and that means collaboration between the public and private sectors, panelists said during a panel at Pay360 in London in late-March.

Jumio VP of Product Management Reinhard Hochrieser argues in favor of a common standard set by government and regulators, which companies can build to, Open Banking Expo reports.

This is the model that was followed in the UK up until the surprise introduction of the Gov.uk Wallet and mobile driver’s license, which sets the government up as a competitor to the companies that have been certified to the common standard it had previously established.

Panelists from NatWest, the Centre for Innovation, Finance and Technology (CFIT), the Norwegian Digitalisation Agency were asked: “Are digital identities the solution to stopping fraud?”

CFIT Director of Coalitions and Research Leon Ifayemi suggests that the Gov.uk Wallet and app could help with the gradual establishment of trust in the system.

Yet more than half of UK drivers (57 percent) are unaware of the introduction of a digital driving license and the government-issued digital wallet to store it in, according to license plate personalization company Regtransfers.

A survey of 1,000 people in the UK from Regtransfers, reported by Business Manchester, also showed that 41 percent have “little to no trust” in the government managing their personal information.

Lee McNabb, head of payments strategy and partnerships at NatWest Group, noted in the panel discussion that elements of Open Banking, implemented without due consideration of commercial viability, set a concerning precedent. On the other hand, the effective digital ID systems of the Nordic countries were held up as a positive example of how public-private cooperation can help.

Collaborate or compete?

An opinion piece written by Tony Blair Institute Executive Director Ryan Wain for the Independent argues that a national digital ID could generate 2 billion pounds (approximately US$2.6 billion) in annual savings, partly through better immigration management.

He nominates Gov.uk One Login, which is used for access to government services, but which like the wallet would introduce direct taxpayer-funded competition against the businesses that have already invested in certification to the Digital Identity and Attributes Trust Framework.

Meanwhile, the trust benefits of One Login are questionable as well. Computer Weekly reports that the UK Government Digital Service has been told One Login has serious cybersecurity and data protection problems that could jeopardize 3 million people’s data.

The call follows a group of 40 parliamentarians from the governing Labour Party calling for digital ID to be used in “tackling illegal ‘off-the-books’ employment in an open letter last week. This, they say, is a key element in getting a handle on illegal immigration in the UK.

The MPs also argue that digital ID will help reduce tax evasion and make it easier for citizens to interact with government.

Article Topics

DIATF certification  |  digital ID  |  digital identity  |  Digital Identity and Attributes Trust Framework (DIATF)  |  Gov.UK  |  Jumio  |  One Login  |  Tony Blair Institute  |  UK  |  UK digital ID