NAB has backed the creation of an interoperable Digital ID ecosystem for Australians to provide greater convenience for people seeking to validate their identity online in a safe and privacy-preserving way.
In a paper, Digital Identity Services for Australians: A NAB Imperative, released on Monday the bank said it an interoperable digital identity ecosystem is needed, “whether that’s ... through the ConnectID solution, myGovID, a state government app, or another trusted and regulated provider”.
“This will be increasingly crucial – for our customers, for the economy at large, and for ourselves at NAB – and we are proud to step forward in helping to drive this journey," the bank said.
“NAB’s interests are intrinsically tied to the community that we serve, and we see the role for ourselves and other trusted providers as vital for facing into our shared national challenges.
“This is firstly important to us as a means for reducing the risks that we and our customers face from criminal activity in identity theft and impersonation, where we can help to reduce the volumes of personal identity data that can be copied and stolen."
It also saw “digital identity is a crucial enabler” when “supporting the increased productivity of the Australian economy”.
“Thirdly, we see value in Digital ID services as it enables us to maintain and further strengthen our customer relationship.”
The paper said NAB customers are “increasingly digitally engaged and have become accustomed to utilising online platforms and services in their daily lives”.
The bank sees an opportunity to “provide additional value to our customers by offering a secure and simple digital means of proving their identification (or verifying a single attribute for them, such as proof of age).”
“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.”
Its report also argues that “Australia needs a well-functioning Digital ID framework, but not all parts of the community will wish to use a Government Digital ID offering.”
“There is lingering scepticism of prior national identity proposals, and international studies have consistently shown that the majority of populations in western democratic societies trust their bank more than they trust government [or] 'big tech' firms.
“There are some individuals who may prefer to utilise a bank, telco, or other Digital ID provider ... to verify their identification or an attribute.
“If we are to achieve success and deliver these more secure and productive services, we need to meet all people where they are. ‘Choose who you trust, and trust who you choose,’” the paper said.
It also stated that “government and banks need each other” with “interoperability between industry and government Digital ID solutions will reduce risks of fragmentation, which otherwise undermine the success and adoption of Digital ID”.
“Where an individual is able to 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.”
Speaking on the report's release, NAB’s executive for digital governance Brad Carr said that “Digital ID will bring more convenience for Australians when they are going through a process of validating their identity online, and doing so in a safe way that protects their data and privacy.”
“We want Digital Identity to work in Australia, for all Australians,” he said.
Carr has previously welcomed the government's Digital ID bill, stating the “over-sharing and over-collection of personal identity data, such as copies of passports and driver’s licences, is feeding opportunities for identity theft” and other fraudulent crimes.
The paper comes about a month after NAB customers became one of the first to sign on to ConnectID, a digital identity exchange.
The service is now live at the Commonwealth Bank of Australia and NAB, and was developed by Australian Payments Plus (AP+).
