Reclaiming Control: Why Digital ID Is About Data Sovereignty, Not Surveillance
*Please note that these thought leadership pieces represent the views of the contributing companies and do not necessarily reflect techUK’s own position.
It’s not really a secret that I'm a cyclist. You’ll find me on the regular, racing over at Herne Hill Velodrome and my header image on LinkedIn is a picture of me having just been swung into the Madison race. I love the competition and there is also the satisfying feeling of uploading a glorious activity to Strava afterwards, to crunch through my all important numbers. My trusty GPS unit records my data, then automatically flicks it over to the platform for all the Kudos and competitive Segment hunting. It's seamless, It's frictionless, but also begs the question- who really owns your data, and who gets to decide how it’s used?
At the heart of this question lies data sovereignty - the idea that individuals should have true ownership and control over their personal information. And that’s exactly where the debate around Digital Identity comes in.
The UK government is moving to make a digital ID mandatory for 'Right to Work' checks by the end of the Parliament, aiming to streamline access to public services and combat illegal working.
The reaction, frankly, has been to focus on the worst-case scenario: "compulsory digital ID" is being framed as an erosion of civil liberties, a gateway to mass surveillance, and a tool of digital exclusion. It’s all fear and no finesse.
I'm not saying the concerns are without merit. However, the narrative is utterly missing the point of what modern, decentralised digital identity is actually trying to achieve - should it be given the chance to thrive.
The critics fear a new, powerful central database, a single point of failure. Yet, the FinTech industry is pushing for exactly the opposite. There is a profound weakness in the current, centralised systems where an individual’s data is harvested and commercialised without our meaningful consent. They hold the keys to the kingdom, your data, and you have to plead with them for access or to not plaster their logo all over it.
A modern, robust Digital ID, particularly one utilising a decentralised or credential-based architecture, flips this entire power dynamic, moving us into a Web3 world.
A decentralised identity model means your credentials – your data attributes, are stored securely on your device, in your digital wallet. You have full control and decide who sees it. You also decide what they see; think back (for me, too far back!) to needing to show your driver's license at the pub. You had to show the bouncer everything (name, address, date of birth) just to prove one single fact: my age. A digital ID allows for granular disclosure, meaning you only share the necessary fact (e.g., "I am over 18") without revealing your name or address. This is the ultimate privacy and agency.
And for FinTech, this translates to pure speed and efficiency. Instant, secure onboarding and Know Your Customer (KYC) checks, the ability to reuse verified identity across institutions, and a significant reduction in fraud. This promises to unlock liquidity and is a core component for FinTech innovation. The benefit is reduced friction in financial services and state entitlements.
The irony is thick: the supposed 'totalitarian surveillance state' digital ID is the very mechanism that grants the individual more data control and privacy than the current physical and metaphorical forest of shared paper copies and centralised data silos. The current system hands over your entire passport to a company that might get hacked next week. The new one lets you prove a single fact from your encrypted wallet.
The digital ID debate, when viewed correctly, is about handing the ultimate power, sovereignty, back to the individual for all their personal data.
The Prime Minister has recently been talking about the benefits of Digital ID following his trip to India, where he was joined by our CEO Janine Hirt. If we had the opportunity again, this would have been a much better point to start the discussion - rather than mandating a single Government-issued solution.
Now is the time for us to start demanding this decentralised, privacy-preserving architecture that will be the bedrock of a faster, more secure, and genuinely user-centric UK digital economy. The FinTech sector is ready to lead that charge
Author
Andy Thornley
Head of Regulatory Policy , Innovate Finance
Digital Identity programme activities
Digital identities will provide a gateway for citizens and SMEs into the digital economy. techUK members demonstrate the benefits of digital identity to emerging markets, raise their profile as thought leaders, influence policy outcomes, and strengthen their relationships with potential clients and decision-makers. Visit the programme page here.
techUK's Digital ID Summit 2025
Join us on 13 October 2025 for techUK’s Digital ID Summit — a key event bringing together industry leaders, policymakers, and innovators to shape the future of digital identity in the UK. Don’t miss this opportunity to be part of the conversation driving trust, security, and innovation.
Our members develop strong networks, build meaningful partnerships and grow their businesses as we all work together to create a thriving environment where industry, government and stakeholders come together to realise the positive outcomes tech can deliver.
Sue leads techUK's Technology and Innovation work.
This includes work programmes on cloud, data protection, data analytics, AI, digital ethics, Digital Identity and Internet of Things as well as emerging and transformative technologies and innovation policy.
In 2025, Sue was honoured with an Order of the British Empire (OBE) for services to the Technology Industry in the New Year Honours List.
She has been recognised as one of the most influential people in UK tech by Computer Weekly's UKtech50 Longlist and in 2021 was inducted into the Computer Weekly Most Influential Women in UK Tech Hall of Fame.
A key influencer in driving forward the data agenda in the UK, Sue was co-chair of the UK government's National Data Strategy Forum until July 2024. As well as being recognised in the UK's Big Data 100 and the Global Top 100 Data Visionaries for 2020 Sue has also been shortlisted for the Milton Keynes Women Leaders Awards and was a judge for the Loebner Prize in AI. In addition to being a regular industry speaker on issues including AI ethics, data protection and cyber security, Sue was recently a judge for the UK Tech 50 and is a regular judge of the annual UK Cloud Awards.
Prior to joining techUK in January 2015 Sue was responsible for Symantec's Government Relations in the UK and Ireland. She has spoken at events including the UK-China Internet Forum in Beijing, UN IGF and European RSA on issues ranging from data usage and privacy, cloud computing and online child safety. Before joining Symantec, Sue was senior policy advisor at the Confederation of British Industry (CBI). Sue has an BA degree on History and American Studies from Leeds University and a Masters Degree on International Relations and Diplomacy from the University of Birmingham. Sue is a keen sportswoman and in 2016 achieved a lifelong ambition to swim the English Channel.
Associate Director - Technology and Innovation, techUK
Laura Foster
Associate Director - Technology and Innovation, techUK
Laura is techUK’s Associate Director for Technology and Innovation.
Laura advocates for better emerging technology policy in the UK, including quantum, future of compute technologies, semiconductors, digital ID and more. Working alongside techUK members and UK Government she champions long-term, cohesive, and sustainable investment that will ensure the UK can commercialise future science and technology research. Laura leads a high-performing team at techUK, as well as publishing several reports on these topics herself, and being a regular speaker at events.
Before joining techUK, Laura worked internationally as a conference researcher and producer exploring adoption of emerging technologies. This included being part of the team at London Tech Week.
Laura has a degree in History (BA Hons) from Durham University and is a Cambridge Policy Fellow. Outside of work she loves reading, writing and supporting rugby team St. Helens, where she is from.
Elis joined techUK in December 2023 as a Programme Manager for Tech and Innovation, focusing on Semiconductors and Digital ID.
He previously worked at an advocacy group for tech startups, with a regional focus on Wales. This involved policy research on innovation, skills and access to finance.
Elis has a Degree in History, and a Masters in Politics and International Relations from the University of Winchester, with a focus on the digitalisation and gamification of armed conflicts.
