Digital ID could unlock a wave of financial services innovation, but only if we get the foundations right, warns TISA

May 5, 2026

Today, The Investing and Saving Alliance (TISA) has submitted its response to the Cabinet Office’s consultation on Making public services work for you with your digital identity.

In its response, TISA emphasises the transformative potential of a well-designed Digital ID system on financial services, for the benefit of firms and consumers. This includes:

Acting as an enabler for further innovation in the financial services industry. For example, a digital ID system could aid the repatriation of dormant assets or support other Open Finance initiatives.
Streamlining account opening processes and reducing onboarding barriers, making it easier for consumers to open, switch and manage financial products. This will not only support the Government’s retail investment ambitions but will benefit 10% of people without a photo ID and others in vulnerable circumstances.
Mitigating financial crime risks by reducing reliance on paper-based forms of ID.

However, TISA urges the Government to carefully consider and review any systemic risks that may arise from the introduction of a digital ID system, as public confidence will be central to its uptake.

Steve Latto, Policy Executive at TISA, commented:

“This is a rare opportunity for the Government to build digital infrastructure which not only improves access to public services but transforms how consumers interact with financial service providers. If we get this right, a digital ID system will reduce friction, promote inclusion and unlock innovation that benefits consumers and improves their financial journeys.

To deliver this, the Government needs to build a secure, scalable foundation which leaves room for the industry to innovate and develop services that will directly benefit consumers. It is critical that a comprehensive understanding of all risks is considered to build public confidence and trust in the system.

We look forward to working with the Government, regulators and the financial services industry as these proposals progress to ensure they benefit consumers.”

Additionally, TISA also recommends that the Government:

Work in conjunction with technology companies and phone providers to consider protections to mitigate the risk of phone theft leading to identity fraud.
Create a notification mechanism to notify financial service firms when a digital ID has been deleted to enable them to make a verification assessment.
Consider end-to-end implications of death and create an agreed mechanism to ensure financial service providers are made aware promptly to prevent fraud and help facilitate the repatriation of any financial service account balances held.
Develop a robust process to ensure financial service providers are made aware when a digital ID is revoked, as this will ensure firms are alerted to any potential fraud activity and any additional suspicious activity reporting requirements.
Provide complete clarity on the liability position of financial institutions that have accepted a digital ID that turns out to be stolen or used fraudulently.

TISA supports several of the Government’s proposals, including flexibility to store digital IDs in any certified digital wallet, the creation of a government checker service and legal requirements on individuals to inform the Government of changes to their information.

ENDS

Notes to editors

For a copy of the full consultation response, please contact tisa@tendoconsulting.co.uk
TISA is a not-for-profit membership organisation committed to improving the financial wellbeing of all UK consumers by working collectively with the financial services industry to deliver solutions and champion innovation, for the benefit of people, our industry, and the nation.
TISA has approximately 270 member firms involved in the supply and distribution of savings and investment products and associated services. Members include the UK’s major investment managers, retail banks, online platforms, insurance companies, pension providers, distributors, building societies, wealth managers, third party administrators, FinTechs, financial consultants, financial advisers, industry infrastructure providers and stockbrokers.