Event round-up: Digital Identity in the UK – Learning from Global Success

The Promise of Cross-Border Digital Identity 

The UK Government is exploring how digital identities can be used securely and effectively across international borders, offering an alternative to traditional documents like passports or driving licences. This would benefit individuals, from tourists and international workers, by streamlining processes such as hotel check-ins, car hire, proving right to work, or accessing financial services. For businesses, it promises faster and more secure identity checks in global transactions. 

Interoperability: A two-way challenge 

Achieving cross-border recognition is not just a technological task; it’s fundamentally about building mutual trust between countries. The UK must ensure that foreign digital IDs can be accepted without disrupting domestic systems, while also working to get UK digital identities recognised abroad. Although the UK has more control over internal policy, both directions are essential to realising the full benefits of digital identity. 

Learning from global approaches 

Different countries are tackling digital identity in ways that align with their political and cultural contexts. The EU is implementing the EU wallet to enable seamless cross-border identity verification within its member states. Meanwhile, countries like Canada and Australia are working toward federal models, and nations such as India, Singapore, and Estonia have invested heavily in centralised digital infrastructure. The UK is following its own standards-based path focused on flexibility, privacy, and user choice. 

The UK’s Legal and strategic foundation 

The UK Government’s approach is underpinned by the Office for Digital Identities and Attributes and the development of tools like the GOV.UK wallet. The Data Use and Access Bill, now passed through Parliament, establishes a legal framework for digital identity services. Although it doesn't explicitly cover cross-border interoperability, it signals the UK’s commitment to a secure, privacy-preserving system built on voluntary use and multiple provider options—contrasting with more centralised models seen elsewhere. 

Trust is key to global adoption 

While digital identity systems rely on sophisticated technology, the real hurdle is trust. Countries are understandably cautious about granting access to their systems and services to foreign digital ID holders. To overcome this, the UK is aligning its system with international standards and engaging in global forums such as the OECD, G7, G20, and ITU to foster collaboration and influence best practices. 

Looking ahead 

There is no definitive timeline for when digital identities will be fully interoperable internationally. However, the UK is building its infrastructure to be ready for that moment. As domestic systems mature and trust grows, pilot projects and trials for cross-border use are expected to follow. The government is committed to balancing innovation with security and privacy, ensuring that the UK’s approach supports both citizens and international cooperation. 

Global Momentum and Interoperability 

The panel opened with reflections on the growing global momentum around digital identity systems, particularly their role in cross-border transactions. Panelists noted that discussions on interoperability, digital wallets, and identity verification standards are increasingly dominating international policy agendas. The UK, EU, and Australia were referenced as regions making significant—but varied—progress in this space. 

Digital ID is increasingly viewed as part of a wider mesh of global authentication services, with providers like OneID and Authologic already connecting to multiple national schemes. These services allow users to reuse their digital credentials across borders, enhancing fraud prevention and improving online safety. 

Country Snapshots: UK, Australia, EU 

Australia has recently passed legislation enabling a whole-of-economy approach to digital identity, after nearly a decade of policy development. Its model emphasises compositing existing identity documents (e.g., driver’s licence, passport) without issuing a national ID card. The country also leverages robust document and face verification services to authenticate identities back to source systems. Although the government has made strides, especially with its MyGovID platform, broad public adoption and confidence-building remain ongoing challenges. 

The UK, while slightly behind in implementation, benefits from being able to learn from global leaders. Rather than rushing toward one model (centralised, federated, or decentralised), the UK has taken a measured approach, focusing on interoperability and metadata-rich standards for identity assurance. The country also lacks a national ID card, adding sensitivity around privacy and personal data control. 

The EU has emerged as a strong force in advancing interoperable, citizen-controlled digital identity frameworks. One example is the EU Digital Identity Wallet (EUDI), which is being rolled out through large-scale pilots. This model emphasises verifiable credentials and self-sovereign identity (SSI), where individuals own and control their data locally on their smartphones. The EU is actively exploring use cases like Know Your Customer (KYC), age verification, proof of humanity, and seamless logins to both public and financial services. 

From plastic to digital

Panelists noted a strong shift in global identity technology from physical credentials (like printed ID cards and passports) to smartphone-based digital wallets. Conferences such as Identity Week in Amsterdam have seen a dramatic pivot in focus, with over a majority of discussions now centered around EIDs and verifiable digital identities rather than physical security. Countries like Poland have already integrated EID systems into daily life, with millions of authentications occurring daily. 

🔍 Key Themes and Insights 

1. The Limits of Voluntary Data Minimisation 

Challenge: 
Even when digital ID solutions offer selective disclosure (e.g., proving age without name or address), service providers may still demand more data due to entrenched business practices or risk aversion. 

Implication: 
Legal and cultural changes are needed to compel businesses to accept minimal data—otherwise, technical innovations won’t shift current dynamics. 

2. Need for education and cultural shift 

User education is essential- both consumers and businesses need to understand that they don’t need to overshare personal data, and further understand how to manage and secure their identity credentials (especially in a wallet model). 

Trust depends not just on tech, but also on changing social norms, providing clear data controls, and highlighting privacy-by-default design. 

3. Government’s Role in supporting market development 

Australia’s approach shows how governments can certify private DI providers, encourage market solutions via pilots (e.g., for rental housing) and address excessive data collection across sectors. Australia’s mix of regulated private sector identity providers + open banking shows a practical path toward adoption and innovation. 

4. The Power of Design: Trustmarks, Use Cases, and Influencers 

John highlighted three effective adoption levers: 

• A trustmark (independent accreditation = more user confidence). 

• Useful, time-saving use cases (not just digital for digital’s sake). 

• Word-of-mouth champions—peer influence outperforms government messaging. 

5. EU Example: Structuring Consent & Enabling SMEs 

Jarek explained two valuable EU innovations: 

• Relying Party Registries: Businesses must declare what data they require and what’s optional—users can deselect extras. 

• Intermediaries: Recognising that SMEs lack DI integration skills, the EU envisions digital ID brokers to lower adoption friction. 

✅ What’s Working: 

• Use of trustmarks to signify legitimacy. 

• Focused pilots in high-friction sectors (e.g., housing, finance). 

• Private sector accreditation models with clear governance. 

• Design with user control, consent and minimal data disclosure. 

• Building supportive intermediaries for SME adoption. 

• Promoting convenience and real-world value. 

⚠️ Where next steps should focus:

• Legal/contractual enforcement of data minimisation. 

• Wider education campaigns about privacy and self-sovereign identity. 

• Designing for sustainability, not just trust—business models must work. 

• Cultural buy-in: shifting both service provider and user expectations. 

_______________________________ 

State of play

The session began by comments that the UK is not yet a digital identity-focused society, largely due to historical and cultural resistance to national ID systems.  While the UK leads globally in digital banking and payments, identity verification still relies heavily on fragmented, often untrusted data sources (e.g. proof of address, documents like driving licences). One key challenge identified was the misalignment of standards (e.g. the UK Trust Framework vs. GPG 45 or EIDAS). From a fraud prevention perspective, the rise of synthetic identity fraud—now the second most common financial fraud type in the UK—highlights the urgency of developing a widely adopted digital ID system. 

Digital ID in the UK still focuses primarily on document and biometric checks rather than interoperable digital wallets. While some financial institutions are developing internal reusable identity systems, the UK continues to trail the EU in terms of digital ID maturity. 

A separate perspective highlighted the need for greater clarity in defining "digital ID." Much of the market continues to associate the term with traditional verification methods rather than mobile credentials or decentralised digital wallets. It was noted that introducing wallets alone won’t ensure adoption, especially given lingering public scepticism due to past government ID scheme failures in the UK. 

The UK's international ambition

It was remarked that the UK is now better positioned with foundational elements like One Login and the Trust Framework. However, it was suggested that government communication needs to better explain how these efforts interrelate. International interoperability was described as essential, not only for individuals, but also for UK businesses to accept digital IDs issued abroad. Calls were made for mutual recognition agreements, particularly with the EU, although it was acknowledged that the UK is currently not a priority in the EU’s digital identity strategy.  

Benefits & Urgency 
The panel stressed that strong digital identity systems bring: 

• Better fraud prevention (e.g. combating synthetic IDs) 

• Enhanced customer trust and smoother onboarding 

• Cost savings for businesses 

• Opportunities for global collaboration and trade 

However, without mandated use, clear standards alignment, and consumer trust, digital identity in the UK will struggle to scale. 

Next Steps 
Richard proposed that the UK pursue mutual recognition agreements—starting with the EU—to achieve interoperability. Yet, the UK's absence in the EU’s latest digital identity strategy is a concern, which should motivate stronger engagement from UK policymakers. 

To summarise the key takeaways from the closing remarks: 

✅ Top Recommended Next Steps 

1. Clear Political Leadership & Vision-There needs to be a consistent, top-down strategy from UK government leadership.Communicate the why to the public: benefits like reduced fraud, better access, easier transactions. 

2. Public Education & Trust-Building- Break the myth that the UK public is resistant — they just need clarity and assurance.Use relatable, high-utility use cases like age verification for alcohol, airport biometrics, or seamless payments. 

3. Legal & Regulatory Alignment- Update laws like the Licensing Act 2003 or JMLSG Guidance to permit and encourage use of certified digital IDs. Tackle ambiguity around privacy laws, especially concerning biometric use and data portability. 

4. Cross-Border & Standards Cooperation Prioritise mutual recognition agreements for digital trust services, this could include starting with Qualified Electronic Signatures (QES).Collaborate internationally — especially with the EU, APEC, and even fast-moving states like Singapore and Estonia. 

5. Private Sector Involvement- Government must involve businesses in wallet design and testing (like the EU’s LSP pilots). Businesses are not just implementers but innovation drivers — they understand the user experience and pain points. 

6. Inclusive Design for the ID-Poor- Nearly 10% of UK adults struggle with existing identity verification methods. Digital identity is a chance to fix this — but only with inclusive design, diverse data sources, and lower-friction access methods.