Govt to establish national digital identity framework

The federal government has adopted most of the recommendations of last year’s Financial System Inquiry report, including a proposal to build a national digital identity framework.

As per the recommendations, the government plans to develop a framework for identity management that does not rely on paper-based records.

The inquiry recommends that the government use the myGov service portal, the national document verification service and other similar initiatives to develop the framework.

In accepting the recommendation, the government said a national digital identity strategy will provide efficiency improvements and streamline individuals’ engagement with government.

The government has tasked the Digital Transformation Office with working with government and the private sector to develop a trusted framework.

Another key recommendation of the report is the establishment of a public-private innovation collaboration committee to ensure Australia’s financial system remains innovative and responds to changing economic realities.

The government also agreed with the inquiry’s recommendation that the government facilitate greater data sharing between financial service industries.

But its response states that the government will support industry efforts to do so under the new voluntary comprehensive credit reporting scheme, rather than through any additional legislation.

“Innovation in the financial sector is always transforming the financial system and this is likely to continue,” the government’s response states.

“New payment methods, innovative funding sources, better use of customer information and deeper cross-border linkages promise enormous opportunities, if properly harnessed. Our policy settings must facilitate entry of these disrupters rather than acting as a blockage.”

Image courtesy of Leszek Leszczynski under CC