The National Australia Bank (NAB) is supporting a push for a nationwide digital identity, claiming it will provide “more convenience” for Australians.
The news comes amid a push from the Australian government to legislate the system either this year, or early next year.
The bank believes an “interoperable digital identity ecosystem” is needed for Australians to connect their banking ConnectID, myGov, and state government apps.
NAB said industry and community-led digital ID solutions will “complement and extend” the reach of government digital ID services.
It added that the “success of the Australian system needs banks,” noting 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.”
Recently, NAB launched ConnectID, a digital identity platform developed in collaboration with Australian Payments Plus that enables users to verify their identity with third parties.
Federal Digital ID Push
The government consulted on the draft Digital Identity Bill 2023 between Sept. 29 and Oct. 10.The legislation would nationally regulate a digital ID that would be available in the public and private sectors. This is expected to be introduced into Parliament within the next seven months.
The chair of the panel, former New South Wales minister for digital government, Victor Dominello, said 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 said there was “progress on digital ID,” in late October.
The minister met with the panel, who are providing “independent advice on the expansion of Australia’s Digital ID System.”
What Else Did NAB say?
NAB said Australia “needs a well-functioning digital ID framework,” but not all Australians were keen about a government digital ID.The bank claimed a digital identity service is important to “reduce 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.
