Read the ABA’s Submission to the Digital Transformation Agency in October 2021.
As the world continues to move toward a more digitised way of life, the idea of every Australian having a digital identity is rapidly evolving. Banks are actively exploring digital identity initiatives.
What is a Digital ID?
Digital Identity provides Australian people and businesses with a single, secure way to access government and other services online.
The Digital Identity system includes everything from the policy and processes governing the system, to the technology and systems that allow it to work.
Digital ID Act 2024: extending to the private sector
The Digital ID Act 2024 has replaced the Trusted Digital Identity Framework (TDIF) with the Australian Government Digital ID System (AGDIS), extending Digital ID beyond federal government agencies to state and territory agencies and the private sector. Private sector entities will become eligible to apply to join the system from 30 November 2026, with the ACCC as the primary regulator and the OAIC overseeing privacy safeguards.
Interoperability, choice and improved processes
Australian banks can see the benefit of collaboration between government and industry. The ABA welcomes the development of a digital identity ecosystem that supports interoperability between different solutions (both public and private), allows for customer choice and improves digital customer verification processes across the economy.
Find out more: Open Banking and the Consumer Data Right (CDR)
Required: flexibility for innovation
The interests of the Australian economy will be better served if there is flexibility to innovate and respond to the needs of consumers and businesses. The ABA has also highlighted the need to ensure a harmonized regime for data protection and privacy between the Digital ID Act 2024, the Privacy Act 1988 and the Consumer Data Right regime.