The Use of Bank Data for Identity Verification – concluded

The banks have an important role to play in the development of the digital identity market. Banks are obliged to meet high standards for identity verification when opening accounts for customers, usually derived from a face-to-face inspection of the customer’s identity documents (e.g. passport, driving licence). Online digital identity services do not have this face-to-face option, and instead currently rely upon corroboration of digital evidence from trustworthy sources such as bank or credit card account as a part of the process when verifying a person’s identity.

However, the bank data used today is derived from secondary sources and not provided by the banks specifically for identity purposes. Key challenges of commercial viability, strategic value, data quality, liability, privacy and user consent[1] need to be addressed for bank transaction data or credit card evidence to support digital identity verification effectively.

[1] See Appendix A in the white paper for more detail on privacy and consent

This discovery project has hypothesised a model by which bank data could be shared more directly and efficiently to GOV.UK Verify certified companies and others in the identity services market. The project has approached the challenge with the assumption that such a service must be beneficial for all parties, and in particular, commercially viable for the banks. There must be clear value to citizens, and a clearly defined privacy approach that is acceptable to the stakeholders.

Lloyds Banking Group, Payments UK and Government Digital Services collaborated on this project.


Learn about the results of this project in the white paper.