Why financial services firms should consider bank assured identity

By Puja Sharma

The UK-based identity tech company that makes it easier for people to prove who they are online, OneID, has published a report uncovering the potential value of the Bank Assured Identity model to the finance and leasing sector.

What is Bank Assured Identity?

Bank Assured Identity is a ground-breaking technology that enables customers to corroborate their identity quickly and safely using bank-grade information with a third party. This is completed via a secure transaction that can be done in seconds and does not require uploads of personal identity documents, such as passports.

The research involved BMW Financial Services, JCB Finance, NewDay, and United Trust Bank and explored the potential to use the Bank Assured Identity model in several use cases, from the car and asset finance to mortgage and credit card applications.

The report makes a range of recommendations that could further extend the already significant value of Bank Assured Identity to customers. These include:

• A recommendation for banks to extend the data they share as at present the model is focused on identity data held about individual customers. If the data could be widened to include additional information, for example about business customers, then the model holds significant potential to be extended.
• For JMLSG to undertake a review and consider potential changes to better reflect these new methods available to the financial services sector.
• To ensure that the bank assured identity model is aligned to current standards and sits comfortably within the Government’s new Identity and Attribute Trust Framework.
• For further research to be taken with financial services firms and other potential user groups to assess additional use cases.

The report comes as the Government continues to promote the development of digital identity in the UK through the development of its Digital Identity and Attribute Trust Framework.

United Trust Bank said, “UTB is a forward-thinking organisation committed to exploring ways in which technology can improve customer journeys as well as our financial crime controls. In the last few years, we have invested in and implemented cutting-edge digital ID verification and secure messaging solutions which both accelerate loan application processing and reduce the opportunity for fraud.

“We were pleased to participate in this research and support the view that the Bank Assured Identity model could further strengthen the security of digital ID verification and data sharing across financial institutions and further enhance the customer experience.”

Key findings

• Gathering accurate and authenticated customer information in a way that is quick and secure. This improves the customer experience and overall security.
• Being able to utilise bank verified data as this is a safe and efficient way to reduce fraud and identity impersonation across a wide range of products and services with minimal disruption to the customer journey.
• The opportunity to innovate current processes to make them more efficient, safer, and more appealing to customers as they can be reassured by the level of security when corroborating their identity.