UK's digital identity implementation necessitates partnership between public and private sectors, according to industry insiders.
The UK is gearing up for the launch of the GOV.UK Wallet and app this year, which will include an early version of a digital driver's licence. The initiative is part of a broader push towards a nationwide digital identity scheme, a topic that has been the focus of much discussion in recent forums, including the Pay360 event in March 2023.
Speakers at the event emphasized the importance of a commercially viable and public-private collaborative digital identity scheme. The key elements they highlighted include:
- Collaboration between public and private sectors: Successful digital ID schemes require partnership across government agencies and private enterprises to leverage strengths and share trusted identity data.
- Commercial viability: The scheme must be financially sustainable, encouraging private sector investment while keeping costs reasonable for users and businesses.
- User-centric design: Ensuring ease of use and security for individuals is critical, with a seamless onboarding process and strong privacy protections.
- Open standards and interoperability: To enable broad adoption, the digital identity system should be built on open technical standards that allow interoperability across different platforms and services.
- Regulatory compliance and trust: Robust compliance with regulatory frameworks is essential to build public trust and meet legal requirements, especially around data protection and fraud prevention.
- Incentives for merchants and users: There should be clear value propositions, such as streamlined payments or loyalty integration, encouraging businesses and consumers to participate actively.
Ronny Khan, senior advisor at The Norwegian Digitalisation Agency, highlighted the well-developed digital ID system in the Nordics, achieved through public-private cooperation. Lee McNabb, head of payments strategy and partnerships at NatWest Group, emphasized the opportunity for the UK to drive digital identity development and the need for public-private collaboration.
However, McNabb also noted the lack of a clear definition of digital ID due to regulatory fragmentation and called for more regulatory ownership. Leon Ifayemi, director of coalitions and research at CFIT, expressed concerns about banks relying on digital ID if they cannot verify the accuracy of the data.
To combat economic crime, CFIT published a blueprint for the widespread adoption of Digital Company ID, which they believe could help mitigate the annual £6.8 billion cost of fraud to the UK economy. Reinhard Hochrieser, vice president of product management at Jumio, suggested that regulators and government should align on a common standard for digital identity, with companies building products on top.
Ifayemi suggested starting with a digital driver's licence for 16 and 17-year-olds could make it the norm. McNabb mentioned Australia's approach to overcoming cultural resistance to an ID scheme by focusing on enabling a core outcome, rather than labeling it as digital ID.
In conclusion, the push for a nationwide digital identity scheme in the UK is gaining momentum. Experts agree on the importance of collaboration, commercial viability, user-centric design, open standards, regulatory compliance, and incentives for merchants and users. As the GOV.UK Wallet and app launch this year, it will be interesting to see how these principles are implemented and how the UK's digital identity landscape evolves.
- The launch of the GOV.UK Wallet and app this year, which includes a digital driver's licence, is part of a broader push towards a nationwide digital identity scheme in the UK.
- Speakers at the Pay360 event in March 2023, including Ronny Khan and Lee McNabb, highlighted the importance of a commercially viable and public-private collaborative digital identity scheme.
- Collaboration between public and private sectors, user-centric design, open standards, regulatory compliance, and incentives for merchants and users were identified as key elements for a successful digital ID scheme.
- The development of digital identity systems, such as the one in the Nordics, requires public-private cooperation and alignment on a common standard, according to Reinhard Hochrieser.
- Banks, like NatWest Group, can play a significant role in the UK's digital identity development, but they must be able to verify the accuracy of the data they rely on, as suggested by Leon Ifayemi.
- To mitigate the annual £6.8 billion cost of fraud to the UK economy, CFIT proposed the widespread adoption of Digital Company ID.
