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.
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
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
• 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.
• 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
• 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
Lexis Nexis Risk Solutions
Lloyds Banking Group
The Post Office
Zurich Financial Services
The testing phase (aim to conclude July 2021) will validate two key assumptions:
The Consumer testing will focus on answering the following questions:
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:
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.
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:
This is an excellent endorsement of the project and demonstrates the Government’s support for this initiative.
From July 2021 onwards, the project will focus on the:
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.
Please contact Harry using the form at the bottom of this page to find out more about the opportunities to get involved.
To find out more about TISA’s Digital ID project and how to get involved, please use the form below.