Government mandating digital
“We have to give people a reason to want to have a credential to interact with government.
“If you look at the experience in the UK, with that market, the original identity providers that went there with Verify, all overestimated the share of market they would get,” Ms Dixon said.Public Services, private products The announcement of the rapid, ground-up development of a new national digital identity credential has far-reaching implications for the private sector too.Apart from the clear necessity for the federal government to urgently improve access to its services and transactions online, the appointment of a digital identity project chief has already aroused strong interest within the private sector, where online and offline identity verification requirements remain a significant cost and a major handbrake on rolling out integrated transaction services that can span business lines.Getting business inside the tent to try and sell the idea won’t hurt either, especially given some banks have been more strident than others.
Under a so-called ‘federated’ digital identity model such as that used in the UK, private sector organisations that provided trusted online services can also feed into customer verification mix – often using authorised private brokers – a model that at face value offers major synergies and cost savings across both government and private services and transactions.
“The issue then becomes do you expose the government to rent seeking at that point from a provider that wants to exit, but instead uses it to negotiate a better deal in order to stay in the market,” Ms Dixon says.