National Digital ID ‘For All Australians’ Gains Support from Major Bank
National Australia Bank believes that industry and community-led digital ID will complement and extend the reach of government digital ID.
The National Australia Bank (NAB) is backing a call for a nationwide digital identity, asserting that it will offer “increased convenience” for Australians.
This statement comes as the Australian government pushes for legislation of the system, either later this year or early next year.
The bank argues that an “interoperable digital identity ecosystem” is necessary for Australians to link their banking ConnectID, myGov, and state government apps.
NAB states that industry and community-led digital ID solutions will “complement and extend” the reach of government digital ID services.
It also notes that the “success of the Australian system needs banks,” adding that not all parts of the community want to use a government digital ID.
NAB digital executive Brad Carr said, “We want Digital Identity to work in Australia, for all Australians.”
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NAB introduced ConnectID, a digital identity platform developed in collaboration with Australian Payments Plus that allows users to verify their identity with third parties.
According to the ConnectID website, “You can expect to see ConnectID rolling out gradually across institutions and businesses in Australia during 2023.”
Federal Digital ID Push
The government opened consultations on the draft Digital Identity Bill 2023 between Sept. 29 and Oct. 10.
The legislation would regulate a digital ID nationally and make it accessible in both the public and private sectors. It is set to be introduced to Parliament within the next seven months.
The panel chair, former New South Wales minister for digital government, Victor Dominello, stated that a draft digital ID bill will be introduced “end of this year or early next year.”
Finance and Australian Public Service Minister Katy Gallagher also mentioned “progress on digital ID” in late October.
The minister held a meeting with the panel, which is offering “independent advice on the expansion of Australia’s Digital ID System.”
“This panel will play an important role in the government’s commitment to legislate a Digital ID system that is secure, convenient, voluntary, and inclusive,” Ms. Gallagher said.
What Else Did NAB say?
NAB emphasized the need for a well-functioning digital ID framework in Australia, acknowledging, however, that not all Australians were enthusiastic about a government digital ID.
shown that the majority of populations in Western democratic societies trust their bank more than
they trust government, more than they trust BigTech firms,” stated NAB in a discussion paper (pdf).
The bank stressed that a digital identity service is critical to “mitigate the risks” NAB and customers face from criminal activity in identity theft and impersonation.
NAB believes it can help reduce the volumes of personal identity data that can be copied and stolen.
Also, the bank sees digital identity as a “crucial enabler” to support higher productivity of the Australian economy.
The bank cited studies showing productivity gains from a well-functioning digital ID ecosystem.
“Recent estimates indicate that the economic value of digital ID to Australia could be approximately three to four
percent of GDP, having regard to similar mature economies,” it said.
In addition, digital ID services would help the bank “further strengthen” its customer relationship.
Noting that customers are more digitally engaged and have gotten used to using online platforms and services in their daily lives, NAB said they can provide “additional value” to customers by offering a “secure and simple digital means of proving their identification.”
“Our customers trust us as custodians of their money and their data, and we want to continue to support and maintain that trust by stepping forward and providing much-needed identity services, rather than waiting for others to do so, such as social networks and global technology giants,” NAB said.
NAB said “government and banks need each other” and industry-led digital ID solutions and interoperability between industry and government ID solutions would reduce risks of fragmentations.
“Where an individual can access a myriad of services across both the private and public sector, utilising their chosen ID verification service provider(s), this will create greater convenience, utility and ultimately increase the effectiveness of Digital ID,” NAB said.
The bank said it is concerned that a focus on only government digital ID providers will see “diminished participation” and an Australian digital identity won’t be able to reach its full potential.
“We’re stepping forward to provide Australians choice, and to ensure our national ecosystem is stronger and safer,” the bank said.
