In spite of previously stating it wasn’t on their agenda, Labour’s U-turn on digital ID could pave the way for a new era of onboarding and KYC in the UK.
During the King’s Speech on Wednesday, to the surprise of many it was revealed that the government was planning to introduce the Digital Information and Smart Data Bill, focusing on legislation for digital identification.
Roger Redfearn-Tyrzyk, Vice President Global Gaming at IDnow told CasinoBeats that their introduction could “change the way users onboard to gambling operators in the UK”.
He continued: “In general, prospective players can be verified with the help of database checks (i.e. credit reference agency data), document checks and/or biometric checks to safeguard players and operators against suspicious or fraudulent activity. IDnow offers all these methods within its portfolio.
“In the UK gambling sector, player onboarding via database checks is still the most common verification method today. If digital ID cards were introduced, this could become a new, possibly even preferred, verification method, depending on how the regulator would choose to deal with this new verification option.”
“Additionally, it will give the player an overview of exactly what data is being checked, so that they are in full control of it. At this moment in time, it may not be clear to the player what data is being checked or verified, unless they consult the small print of the terms and conditions. With a digital identity, the player would truly own their data on their device.”
Digital ID is not a new proposal in the British market, having previously been touted under the last Labour government by Tony Blair in 2005.
The former Labour leader also lobbied for them again following the party’s return to power after 14 years in the shadows, with Blair citing its potential to tackle illegal immigration in the country.
Introduction of digital ID could have widespread consequences on a plethora of industries, though including the gambling space where KYC is nothing short of crucial. They will mean the implementation of Smart Data Schemes, which will facilitate the secure sharing of customer data with authorised third-party providers.
Redfearn-Tyrzyk pinpointed Singapore as a market that has had success in terms of digital ID, as he emphasised that they can perform multiple functions.
He said “In Singapore, the digital ID replaces 33 other IDs and is used to prove identity for public and private transactions, including applying for social services, entering government clinics and banking.
“There are hundreds of public and private sector use cases where digital identities could optimise the user experience in a KYC process. For example, account opening in banking, compliance checks in crypto, age verification in mobility, streamlined check-in processes in travel or contract signing in telecommunications.”
Mapping out potential challenges to their implementation, he revealed: “In 2021, around one in four people in the UK did not have a traditional form of ID. While technology offers a fast, low-cost way for countries to provide identification to adults, any new system or product takes time to build a new user base.
“In the past, many digital ID programmes around the world have struggled with adoption rates due to a lack of public-private partnerships and the associated difficulties in integrating with different government agency identification systems.
“In the UK specifically, because ID cards – and digital ID cards in particular – are a relatively new concept, there is a general lack of awareness of their benefits and therefore a lack of confidence in how they work. This would likely hinder the initial uptake.
“Additionally, consumers, both in the onboarding process and in daily use, have become accustomed to a certain customer experience when using digital solutions. Unless a UK digital identity solution provides a similarly seamless and smooth experience, users may not migrate to the new solution.”
