Digital ID Is Coming To Banking Apps, But Will Customers Trust It?

UK banks are working on a voluntary digital verification service that lets customers prove details such as name, age or address through a banking app. UK Finance says Barclays, HSBC, Lloyds Banking Group, Nationwide Building Society, NatWest Group and Santander support the work.

The service uses information already checked when a bank account is opened. UK Finance said, “Based on the trusted relationships banks and building societies have with their customers, the relevant verified information such as name, age or address would be shared securely with a third party.”

Customers would give consent before any detail is shared, and use of the service would be voluntary. UK Finance says customers stay in control of what data is shared and when.

 

Why Is Trust So Important For Digital ID In Banking?

 

Banks are using the trust people already have in them, to support digital identity checks. That trust determines whether people feel comfortable confirming identity details through an app.

But, when it comes to digital ID specifically, many are still skeptical. Since the UK digital ID saga last year, the government and institutions are left with the responsibility to rebuild trust.

As UK MPs said in a report, “Successive governments have made a series of promises designed to address the institutional failings outlined in the Information Security Review.

“Yet we remain concerned that the current government is not holding itself to, or delivering, the standards of information and data security needed to secure and maintain public trust. This failure threatens the government’s digital transformation ambitions, and undermines public trust in its planned digital ID.”

 

What Is Changing In Online Identity Checkd?

 

Banks are exploring digital ID as online identity checks face pressure from new forms of fraud.

Existing methods often use document uploads and selfie checks, and as Chris Jones says, “The decade old pattern of a document scan plus a selfie is failing in measurable ways.”

He also says, “Digital injection attacks against face checks are rising several hundred per cent annually, with real time face swap and camera injection tools sold as a service for nominal sums.”
 

 
Chris Jones adds that the Financial Action Task Force identified deepfakes in December 2025 as a tool that can bypass identity checks during onboarding.

UK Finance says bank verified credentials could help reduce fake accounts and identity fraud since the data comes from accounts already checked under banking rules.

The service is also designed to help businesses verify customers more quickly, without repeated document checks during online sign up or transactions.

 

What Issues Still Need To Be Resolved?

 

Chris Jones raises some valid points on what still needs to be dealt with when it comes to this technology. He says, “who carries liability, who pays when open banking data is already free, and who takes it to market.”

UK Finance confirmed that regulated organisations still carry responsibility for customer due diligence even when third party services are used. That means businesses using digital ID will still need to meet regulatory standards.

Chris Jones says the value of a bank verified identity depends on how much legal assurance it gives to the organisation using it.

There is also the issue of cost: UK banks already provide account information through open banking rails, which can confirm account ownership and some personal details at no cost. The new service will need to show why its higher assurance identity checks justify payment.

UK Finance says retailers, platforms and other organisations are being invited to take part in upcoming pilot activity as live testing moves forward in the coming month and this will determine whether trust and viability are possibilities here.