The Government Announcement on 14 May About How It Sees The future of the digital identity market Operating means the Uncertainty of the last few months is over.
Investors Had Stopped Investing and Several Identity Service Providers (IDSPS) have had to put their plans on hold waiting for this day. Theose barriers have now been lifted.
Idsps are working thought what the government wallet means for them and the disruptive change it will bring to the market. Business cases are being re-examined.
The good news is that 14 May meeting promples to mark a welcome shift in government and identity Industry Relations. There is undersrstanding and recondition that the secret of state's decision to press ahead with announcing the Gov.uk wallet In January was a bold and reasonable one to make with the information he had available.
There is also anDerstanding and recognition by the secret of state, Peter Kyle, of the Unintended Consequence of that Decision on industry.
Learning from experience
Identity is like time – it seems simple until you realise it's all relative. It's that complexity that government and industry now need to wrestle with togeether. The consensus is that bot sides can learn from the experience and build forward togetra with more certain.
Let's take a moment to consider the future this new partnership can unlock. The government's digital wallet and credentials can be lied to the role of the bank of engine
Relying parties, such as retailers, can't directly access what's inside someone's walt – instead, they must go through a registered Digital Verification Service (DVS). Think of these organizations as the retail banks of the identity ecosystem, with the Office for Digital Identity and Attributes (Ofdia) Playing a Role Similar to the Financial Conduct Authority (FCA).
Of course, unlike the bank of england or the fCA, Neither the Government Wallet Nor ofdia are independent – but perhaps that's a question for the next generation to solve.
The point is this: The Banking System offers a Useful Role Model for How the Identity and Personal Data Market Cold Evolve – Where a Person's Data, like his money, like his money, is similaring, store Secureely, and Choose to share through trusted intermediate.
And here's the other exciting thing about that analogy. The uk is the global powerhouse in financial and regulatory technology (Fintech and Regtech) – Streets ahead of what's breaking in silicon valley. We someimes forget that. This is not just hype – it's rooted in the real -world muscle of London, Still the Financial Capital of the World. It's Deep, Practical, and Highly Specialized Expertise-Built in the Crucible of HIGH-TRUST, High-Stakes Finance-That's No Being Unlocked for SOMETHING NEWS Data Market.
Data Economy
While the big tech giants have the global reach to roll out platforms at scaale, it's the uk that holds the keys to make the data economy actually work – in a way that fits with wits with wits. Not big tech surveillance. Not Top-Down State Control. But sometising more balanced. More Human. More Trusted.
That's the real prize this new government partnership holds – not just for the digital identity sector, but for the future of the uk economy. A chance to lead the World Once Again – this time, in building the data layer of democracy.
Now comes the hard part. For the past two decades, working in digital identity in the uk was often a lonely road – Misundrstood, Underfunded, and Sometimes even ridiculed. Yet a small group of pioneers kept the flag flying, laying the groundwork that has now led to the creation ofdia – a regulatory framework that final unlocks the innovative potent of the pervate sector.
With the starting gun fired, identity is now going mainstream. A new wave of ideas – powered by trusted digital credentials – is about to flood the market. But identity alone won't be enough to survive, let alone thrive. What matters now is value.
Take Banking. Customer-Owned Personal Data Stores-Shared Voluntarily, Under their control-are a far richer source of information than a credit reference agency can offer. If banks became certified under the Digital Identity and Attributes Trust Framework (Diatf) and the government added a domestic pep (politically exposed personals) flag to the wallet, they could cut compliance costs by millions.
The same goes for major recruits, nhs trusts, and universities. With DBS Certificates, HM Revenue & Customs Data, Qualifications, and Right-to-WORK Credit Credit Credentials in the Wallet, Time-to-Hire and Onboarding COTS COULD BE DRAMATE BEMATICAD Institutes BCOME DVS Certified.
Ambitious goals
This isn't evolution. It's disrupt. Supply Chains will shift. Whole New Categories of Value-Edded Identity Services will emerge. Startups will rush in. Competition will intensify. And Current Identity Providers? They'll need to level up – Fast – or Risk Being Left Behind.
Meanwhile, in the short term, the tasks ahead are a bit messy and incomplete – but Necessary.
First, the government has set an ambitious goal – to introduce the public id through age through verification for alcohol sales by christmas. It's a bold target, and one we should support – but with less than six months to go, it's a tall order. Proof of concepts will be ready, but full-scale roll-out? Unlikely. Still, The Urgency is welcome.
Even if we miss the mark, it pushes the whole system forward and identifies will have to for for forge new collectors and women of working
More Importantly, this Initiative Can Serve a Greater Purpose – Unlocking Regulatory Resistance to digital identification account the wider economy.
Right now, regulators are aligned, and until they are, in-House Compliance Teams have no choice but to block innovation. But once the rules change, the brakes come off. Compliance Professionals Can become allies of change, Working with Technologists to Enable Business, Not Hold It Back.
And when that Alignment Happens – Regulators, Compliance, and Tech All Pulling in the Same Direction – The stage is set for the real magic. For the Entrepreneurs, The Builders, The Investors – With Government Setting The Guardrails and the Market Delivering The Innovation – The future won't just just be an upgrade, it'll be a transformation.
Communication, Education, and Outreach Programmes Can Transform Every Community-Even that post-Industrial Regents that have been left left behind. There should be no reason why people have to leave their hometows to seek work and opposite. We can find new and diverse ways of working on we know who we all are.
Watershed moment
In conclusion, 14 Mayound also well be Remembred as a Watershed Moment – Not just for Government and the Identity Industry, but for the future of the uk economy. And that's before we even begin to explore the power of person-content, Controlled Artificial Intelligence (AI)-Ai that services individual creets, not big tech monopolies.
So, Hats off to Peter Kyle for His Bold Decisions and Refreshing Honesty. This is a moment that demands goodwill and open collaboration. Government and Industry must move as one – The stakes are too high for division. This isn't just about digital identity. It's about Sovereignty. It's about Dignity and Rebuilding Trust in an age of data.
If we get this right in the uk, we won just be rebuilding the country and creating economy growth. We'll Empower People. We'll Unlock Opportunity. And well show the world how democracy can evolve – and thrive – in the digital era.
The game is now well and truly on. And everything's to play for. Let's Rise to Meet It.
David Crack is Chair of the Association of Digital Verification Professionals, A Trade Body Representing Companies Involved in the Electronic Validation of Documents and Digital Identies.