UK Finance backs bank app digital ID verification pilot

UK Finance is supporting six banks and building societies in developing a voluntary digital verification service that would let customers confirm personal details through their banking app.

Barclays, HSBC, Lloyds Banking Group, Nationwide Building Society, NatWest Group and Santander are involved in the project, which is intended for private-sector commercial and retail use. Select ID is leading the technical design and delivery.

The proposed service aims to reduce the need for repeated checks that often require people to share physical documents or multiple pieces of information online. Under the model being tested, a bank or building society would share verified information, such as a customer's name, age or address, with a third party if the customer gives explicit consent.

That information could then be used to complete a transaction or access a service. Examples under consideration include online purchases, age and identity checks on digital platforms, property transactions and opening an account online.

How it works

Any eventual service would be voluntary, with customers deciding what data is shared and when. The aim is to allow people to verify details digitally without submitting documents such as passports or utility bills for each transaction.

The project has already completed proof-of-concept work using synthetic data. That phase examined the technical, legal and operational requirements for a financial services-led digital verification service.

A live pilot in a controlled real-world environment is due to follow. It is expected to test how the service works with actual users and organisations in a more practical setting.

Sector role

The banking industry is positioning the initiative around the existing relationship between banks, building societies and their customers. The idea is that institutions that have already carried out verification checks could serve as a trusted source of identity information for other businesses.

The work is separate from the government's digital identity programme, although it aligns with the UK digital verification services trust framework. It is not intended for public-sector use and is instead focused on commercial applications.

Supporters argue the model could cut fraud by making it harder for scammers, fake accounts and synthetic identities to pass onboarding and transaction checks. They also say it could help companies verify customers more reliably while reducing the cost and friction of existing processes.

For consumers, the case rests on convenience and control. Instead of repeatedly uploading documents or entering the same information across multiple services, users would be able to approve sharing a specific verified attribute directly from their banking app.

Industry comments

Jana Mackintosh outlined the case for the project.

"The financial services sector is ideally placed to deliver a secure and trusted digital verification service. Using already verified information, shared only with the customer's explicit consent, could help make digital transactions safer, quicker and more convenient, as well as ensuring customers have full control over how their data is used," said Jana Mackintosh, Managing Director, Payments and Innovation, UK Finance.

Select ID is working with UK Finance and the participating firms on the technical build and delivery model, acting as a delivery partner for the current phase of the initiative.

"We are pleased to support this industry initiative to explore how trusted, bank-verified information can be used to make digital verification more secure and convenient for customers and businesses," said Nick Mothershaw, Chief Executive Officer, Select ID.

UK Finance is seeking interest from retailers, digital platforms, other organisations in the digital verification market and businesses looking to streamline online customer checks.