Janine Hirt, CEO of Innovate Finance and RegTech UK, says the Government’s Digital Identity announcement “raises concerns about innovation that need to be addressed swiftly”.

“Reusable digital identity and verification is a critical component of the tech stack that forms the building blocks for FinTech innovation in the UK – helping to reduce fraud and enable financial inclusion,” she said. “The decision to mandate Government ID however risks the discussion being focused on civil liberty and sovereignty – rather than the utility and innovation this technology can bring to people across the UK. It is also vital that the roll-out of Digital ID supports a competitive market, underpinned by a trust framework, not via a monopoly or costly State solution.

“Equally, mandating a Government-issued ID could crowd out companies who have been developing innovative solutions which are accredited against the Government’s own legal framework.

“Design and delivery must enable multiple service providers, unlocking innovation and supporting the growth of our nascent UK digital verification innovators.

“It could provide a useful identity attribute which can then be used by verification providers to provide a range of services. If, however, it becomes the de facto identity scheme or is delivered in a way that hands market power to a few large corporates, it will kill the UK’s innovation opportunity and undermine trust. Swift clarification is needed from the Government on design and delivery principles to prevent his announcement from freezing investment in our vibrant scale up tech firms in this sector.”