Consumers using financial services could benefit in the future from a ‘digital ID’ that simplifies the way they access products and services.
Financial services cross-industry body TISA has announced a six-month trial of prototype ‘digital ‘identities’ for financial consumers to establish a set of standards in keeping with regulations and anti-money laundering rules.
If the scheme takes off, digital IDs will enable customers to manage their money online more easily and securely.
David Dalton-Brown, TISA director general explains the Digital ID concept: “It’s clear that people would save and invest more if the process of opening savings and investment products and transferring money was made easier. Too many customers are left frustrated when they are unable to complete financial processes online. That’s why the digital identity is vital to helping people manage their money better.
“As the digital ID project has progressed, we have opened up the potential for a full ‘digital ecosystem’, allowing consumers’ data to be managed securely on their behalf. Both businesses and consumers will be able to take greater control of their information, in a trusted and easy-to-use way.
“We see the digital ID providing a vital foundational component in the digitisation of UK financial services. This will benefit consumers, product providers, fintech firms and deliver considerable economic benefits to the UK.”
In theory, the digital ID will allow financial providers to save on the cost of onboarding new customers, while making it easier for consumers to switch and obtain financial products