The Investing and Saving Alliance has secured a £340,000 grant as part of its push to roll out a digital ID scheme for consumers using financial services.
The plans could see consumers remotely use one digital ID when switching pensions or applying for a product, which TISA said was of increased importance given the physical restrictions of the coronavirus crisis.
The trade body won the grant from the government-backed Innovate UK. It will see TISA lead the consumer and technical testing of the digital ID concept.
Harry Weber-Brown, director of digital innovation at TISA, said: “Digital ID will benefit all parties in a transaction significantly.
"Customers will experience a secure, quicker and more simple journey when using financial services online leading to faster opening of accounts, less time managing passwords, more control of data, and ultimately better management of their finances."
On the flip-side, Mr Weber-Brown said providers would enjoy improved customer satisfaction, higher conversion rates and lower costs in account opening and product transfers.
The digital ID scheme is set to initially be developed for UK market use, but will be "internationally operable".
TISA also has hopes the wide-spread use of a digital ID for consumers would see a drop in financial crime.
Using data from non-profit The Open Identity Exchange, the trade body estimated the adoption of digital IDs would prevent up to £8.5bn in identity-related fraud per year.
Matt Warman MP, the minister for Digital Infrastructure, said: "Digital technology is helping us through the pandemic and continues to improve the way we live, work and access vital services.
"We want to make it easier for people to prove their identity securely online, where they choose to, so transactions can become even quicker - it has the potential to add billions to our economy.
"I look forward to seeing the results of the proof of concept and how its lessons can be used by the sector in the future."
rachel.mortimer@ft.com
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