Over the next six months TISA and a group of providers will develop several prototype consumer ‘digital identities’, with the aim of testing different customer verification methods.
TISA, the Tax Incentivised Savings Associations, said it hopes the Digital ID will give consumers “greater control and access over their finances” 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.
This pilot phase builds on earlier consumer research and previous phases of the project.
The organisation, which counts many fund managers, platforms and investment firms among its membership, believes the project will “revolutionise” how people manage their money and make it easier for them to save and enhance their financial wellbeing.
By the end of the six months, TISA says the test group will have established a clear set of standards and levels of assurance to create a secure Trust Framework in keeping with regulation and anti-money laundering rules.
The digital identity will be based on an open set of standards which will make it easy for the UK financial services industry to adopt the new technology, says TISA.
David Dalton-Brown, TISA director general said: “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.”
The Digital ID will also allow financial service providers to save on the costs of taking on new customers, claims TISA. This will allow better protection for their 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.
Pilot working group member Dave Willdig, head of IT architecture UK at Zurich, said: “Digital identity will increasingly become a core requirement in any online transaction and we are very pleased to be involved with this project.”