Savings and investments membership organisation TISA has launched the pilot phase of its industry project to develop a Digital Identity – a move it says builds on earlier successful consumer research and emulation work.
TISA believes the project will revolutionise how people manage their money and make it easier for them to save and enhance their financial wellbeing, and states that over the next six months it and a group of leading financial service providers will develop several prototype consumer ‘digital identities’ with the aim of testing different customer verification methods.
The aim: by the end of that time, the test group will have established a clear set of standards and levels of assurance to create a secure Trust Framework that is in keeping with regulation and anti-money laundering rules, while all the digital identity work will be based on an open set of standards so as to make it easy for the UK financial services industry to adopt the new technology.
A Digital ID will give consumers greater control and access over their finances, claims the group, by granting them the ability to easily transfer funds between accounts and make it easier for them to communicate with their providers should any personal circumstances change.
“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,” claimed its Director Generalm David Dalton-Brown. “Too many customers are left frustrated when they are unable to complete financial processes online. That’s why Digital Identity is vital to helping people manage their money better.”
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Dalton-Brown went on to claim that the Digital ID project has already “opened up the potential for a full Digital Ecosystem, allowing consumers’ data to be managed securely on their behalf”, as “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, which will benefit consumers, product providers, fintech firms and deliver considerable economic benefits to the UK.”
The Digital ID will also allow financial service providers to save on the costs of taking on new customers, allow better protection for customer’s personal data against identity fraud and will create new revenue streams through the development of new products and services which utilise digital identity, it also promises.
The Digital Identity Pilot Governance Steering Group includes, apart from TISA itself, DST, Experian, Fidelity, FNZ, LexisNexis, Northern Trust and Zurich.
TISA describes itself as consumer focused membership organisation aimed at improving the financial wellbeing of UK consumers by aligning the interests of people, the financial services industry and the UK economy. It does this, it claims, by delivering innovative, evidence based proposals to government, policy makers and regulators.