At the recent Pay360 event in London, panelists emphasized that the success of the UK’s digital identity scheme hinges on its commercial viability and strong collaboration between public and private sectors. This was a central theme in a discussion that featured representatives from Jumio, NatWest, the Centre for Finance, Innovation and Technology (CFIT), and the Norwegian Digitalisation Agency.
Reinhard Hochrieser, VP of Product Management at Jumio, advocated for a common standard set by the government and regulators, which private companies could build upon. This model underpinned the UK’s early efforts to establish a digital identity ecosystem—until the unexpected launch of the Gov.uk Wallet and mobile driver’s license, which effectively introduced the government as a direct competitor to certified private sector providers.
Leon Ifayemi, Director of Coalitions and Research at CFIT, suggested that the Gov.uk Wallet could play a positive role in gradually building trust in the digital identity system. However, recent data from license plate personalization firm Regtransfers shows significant gaps in public awareness and trust. According to a survey of 1,000 UK drivers, 57% are unaware of the digital license rollout, and 41% expressed “little to no trust” in the government managing their personal data.
NatWest’s Lee McNabb warned of the risks of implementing elements of digital infrastructure, such as those seen in Open Banking, without clear commercial incentives or stakeholder alignment. In contrast, the Nordic countries’ digital ID frameworks, built through public-private partnerships, were held up as models of success.
Adding to the debate, Ryan Wain, Executive Director at the Tony Blair Institute, argued in an opinion piece for The Independent that a national digital ID could yield £2 billion in annual savings, primarily through more efficient immigration and public service delivery. He pointed to Gov.uk One Login as a potential tool for streamlining access to services—but noted that it introduces taxpayer-funded competition against businesses that have already invested in the Digital Identity and Attributes Trust Framework.
Concerns about trust and data protection remain. Computer Weekly reported that One Login faces serious cybersecurity issues, potentially putting the personal information of 3 million users at risk.
Meanwhile, 40 Labour MPs recently signed an open letter advocating for digital ID to combat illegal employment and immigration, reduce tax evasion, and improve how citizens interact with government services.
The UK now faces a critical choice: to build a digital identity ecosystem in collaboration with the private sector, or risk fragmentation, distrust, and underutilization by pursuing a government-first approach.