Digital ID

The vision is to create a single Digital ID that meets all relevant regulatory requirements (KYC and AML) and is positioned to consumers, as the prime means for securely identifying themselves to UK Financial Services. 

This Digital ID will allow consumers to re-use their verified identity and associated KYC attributes to open and access online financial services.

Digital services and associated technologies are vital building blocks that will help UK consumers effectively manage their finances and improve their financial wellbeing. Consumers are increasingly engaging with digital services to manage their finances and make more informed decisions.

TISA is leading on a series of innovative projects that focus on the digitalisation of UK financial services for the benefit of consumers, the industry, the developing FinTech sector and the broader UK economy. These projects are open to TISA members to participate and will drive cost savings and/or opportunities to build new exciting financial products.

This TISA industry project is developing a Digital ID scheme and governance body that meets all FCA, KYC, and AML standards together with the requirements of UK government to access their data. This is the gateway to opening up the full digitisation of UK financial services. TISA is creating a Scheme that allows Financial Services Providers to use Digital IDs of KYC purposes from a range of certified ID Providers.

The project is now in the testing phase (Proof of Concept) in which the Project Team is building and testing of the proof of concept and technical architecture for the project. This includes user testing to ensure the digital identity will meet the needs of the consumer. We are developing the test environment (Proof of Concept) that will connect financial service providers to identity providers as well as consumer research work.

Background to Digital ID

Background and approach

Problem statement

Consumer: I want to access FS products faster, simpler and more securely

Financial Services Provider: I want to offer easier online access to my products so that I can increase my sales, conversion rates and reduce my costs

ID Provider: I want to become a recognised IdP to improve efficiency, customer relationships and to create a new revenue source

THE SOLUTION: How might we enable easy access to all digital services by creating a single, reusable, secure ID owned and controlled by the consumer?

The vision is to create a single Digital ID that meets all relevant regulatory requirements (KYC and AML) and is positioned to consumers, as the prime means for securely identifying themselves to UK Financial Services. 

This Digital ID will allow consumers to re-use their verified identity and associated KYC attributes to open and access online financial services

Future state


Approach

Project Steering Committee consists of the participating firms and has overall governance, including making key strategic decisions, budget control and communications.

Working Groups work on defining and delivering each workstream through a mixture of workshops, research and commissioning any third parties. Chaired by a participating member

An overview of the Digital ID project

• This is single Digital ID, controlled by the user, can be re-used with many different organisations

• This TISA industry project is developing a Digital ID scheme and governance body that meets all FCA, KYC, and AML standards together with the requirements of UK government to access their data. This is the gateway to opening up the full digitisation of UK financial services. TISA is creating a Scheme that allows Financial Services Providers to use Digital IDs of KYC purposes from a range of certified ID Providers.

• The project is now in the testing phase (Proof of Concept) in which the Project Team is building and testing of the proof of concept and technical architecture for the project. This includes user testing to ensure the digital identity will meet the needs of the consumer. We are developing the test environment (Proof of Concept) that will connect financial service providers to identity providers as well as consumer research work.

• Innovate UK has just awarded TISA with a Smart Grant to support the Digital Identity Testing Phase. The award of the grant is a fantastic endorsement of the project and will help accelerate the development of the required infrastructure; this will be key enabler for delivering an Open Finance marketplace.  

• The TISA team continues to work closely with colleagues in the Government Digital Service and DCMS to align the development of the Government and Financial Services Digital ID schemes and the development of the infrastructure.  

• The ID standards also support EU requirements and as such will facilitate cross border EU trading. 

• The project is backed by UK Financial Services and Identity Providers who are collaborating together to work on this project with TISA.

• Use of Digital ID has been added as an acceptable method of KYC by in the AMLD5 UK regulation, with the detail of it’s use to be defined by the JMLSG, creating a Financial Services Digital ID Standard.

Why should you get involved?

Benefits of participating in the project

• Test your own Digital Identity plans and propositions in a controlled environment.

• Ability to influence and shape the key Digital ID programme for UK financial services that will deliver huge growth potential in the Digital Identity market.

• Help form the future body that governs the scheme, standards and identity requirements for Digital Identity across multiple sectors including collectively working with GDS in building interoperable standards between the two schemes and unlocking Government data.

• Working closely with other financial service providers to build shared infrastructure

• Involvement includes having a seat and voting rights on the Governance Steering Committee (which has strategic oversight and budgetary control of the programme) and active participation in the workshops (including the pilot development, infrastructure and others).

• Help shape the standards and identity requirements for Digital Identity across multiple sectors including collectively working with GDS in building interoperable standards between the two schemes and unlocking Government data.

• Jointly dealing with the regulator to demonstrate industry perspective

Benefits to business

• Please see below a range of benefits delivered by the Digital ID.

• Higher conversion rates/ sales

• Cost savings in account opening & product transfers

• New digital product and service development to deliver value added services:  aggregation, dashboards, tailored products

• Potential new revenue streams

• Lower risk and mitigate fines

• Better fraud notification capability

• Improved customer service, fewer customer complaints

Project status

Participating firms

Accenture
Aviva
Barclays
Experian
Fidelity
GBG
Lexis Nexis Risk Solutions
Lloyds Banking Group

Northern Trust
Origo
Santander
SS&C DST
The Post Office
Zurich Financial Services
Yoti

Where are we at now?

Testing Phase (Phase 3)

The testing phase (aim to conclude July 2021) will validate two key assumptions:

  • Will the consumer use a Digital ID service?
  • Will the financial services use a Digital ID service as part of their onboarding processes?

The Consumer testing will focus on answering the following questions:

  • Will they use this service?
  • How will it be promoted to users and incentivise them to drive growth?
  • What are the key features and functionality required? This includes cross-sector.
  • How can we optimise the ID registration user journey and weave these into existing journeys?
  • Testing existing Verify customers to see if they would use the service
  • Testing if customers with a Digital Identity from elsewhere will use the service
  • Testing new customers to see if they would use the service

The industry testing will be delivered by developing a test hub for participants and other TISA members to connect into and exchange identity data. This will enable the Project team to understand the following:

  • How the different parties can connect into the Digital Identity hub and share data in a controlled environment.
  • Test the standards and the draft policies of Trust Framework
  • Understand the key features (such as payments, auditing) required by the participants. 
  • Identify the costs efficiencies and other benefits to consumers
  • Define a common set of APIs to connect to that will exchange data through single data source point.

Outputs

  • Report on the consumer journeys including requirements, any blockers and feedback on the features
  • Test Results and validation of the assumptions to feed into specification for the Build Phase
  • A consumer acquisition and engagement plan

Commercial Working Group

TISA has set up a Commercial Working Group that is developing the launch plans for the Digital ID live service including validating the business case, pricing models and the commercial model for the operating the scheme as well as plan the promotional activities to drive take up. This group includes trade bodies, trade associations and membership firms including UK Finance, the ABI, Innovate Finance, the Finance and Leasing Association.

Innovative UK

Innovate UK (an executive non-departmental public body sponsored by the Department for Business, Energy and Industrial Strategy) has awarded TISA with a grant to support the research phase of the Digital Identity project.

The grant supports the Proof Of Concept that will test the use and reuse of secure Digital Identities between the Relying Parties (financial services) and Identity Providers through the development of a Hub and the connectors between participating firms, as well as customer acceptance testing.

This centres on testing test three use cases:

  • opening a bank account with an overdraft
  • applying for an ISA
  • and opening a pension.

This is an excellent endorsement of the project and demonstrates the Government’s support for this initiative.

What’s next?

Phase 4 – Build Phase

From July 2021 onwards, the project will focus on the:

  • Development and testing of the live service (Minimum Viable Product) with participating firms
  • Active marketing and enrolment to participating firms and consumers and enrol financial services in preparation for the ‘live’ service.
  • Prioritise the backlog for additional functionality and features scoped and developed
  • Maintenance and updates to the standards and Trust Framework
  • Launch plans for the scheme
  • Management of software vendors (such as the hub provider) and other technical providers
  • Ongoing improvement of the service and customer experience

How to get involved

Harry Weber-Brown, Digital Innovation Director leads on this work at TISA

These are the current opportunities to get involved with the Digital ID project.

  1. Join the project as a full participant 
  2. Join the subcommittee for suppliers 
  3. Get connected with the Proof of Concept
  4. Receive mail updates
  5. Attend open industry events

Please contact Harry using the form at the bottom of this page to find out more about the opportunities to get involved.

Latest News

TISA wins £340,000 grant from Innovate UK to advance Digital ID technologies giving everyone easy access to financial services

Go to

TISA calls upon the industry to accelerate Open Finance so more consumers have better access to digital services

Go to

TISA Partners with MVINE to connect financial services firms to identify providers for a federated Digital ID marketplace

Go to

Contact Us

To find out more about TISA’s Digital ID project and how to get involved, please use the form below.

  • This field is for validation purposes and should be left unchanged.