Australia’s Largest Bank Supports Voluntary and Secure National Digital ID System
The Commonwealth Bank of Australia (CBA), the country’s largest bank, has expressed its support for the proposed Digital ID legislation by the Albanese Labor government. However, the bank emphasizes that the system must remain voluntary and prioritize security and privacy. In a submission to a parliamentary inquiry, the CBA outlined five principles that the government needs to adhere to for the digital ID system to be robust and interoperable.
The first principle highlighted by the bank is that Australians should have a choice of identity providers. This means that individuals should be able to select the organization or entity they trust to verify their identity digitally. The second principle is voluntary use, which ensures that individuals have the freedom to opt for the digital ID system or choose alternative methods of identity verification.
Interoperability with the private sector is another crucial principle highlighted by the CBA. It suggests that the digital ID system should be able to seamlessly integrate with private organizations, allowing them to verify individuals’ identities without the need for additional information. The bank also emphasizes the importance of being “technologically neutral,” meaning that the digital ID system should not favor any particular technology or platform.
Lastly, the CBA stresses the need to reduce the amount of personal data that Australians must share to verify their identity online. The proposed system aims to provide individuals with a one-time PIN through a Digital ID app, eliminating the requirement for repeatedly sharing personal information.
The proposed Digital ID system shares similarities with the existing myGovID, which is used by Australians to access government portals such as ATO, Centrelink, and Medicare. However, the current system can only verify individuals’ identities against their passports and not against other forms of identification issued by state and territory governments. The government envisions a national, economy-wide system that can verify identities against various government-held documents.
Privacy and security are paramount concerns addressed in the proposed legislation. The government aims to encrypt personal data supplied through the Digital ID system, making it difficult for third parties, including the digital identity provider, to view or share the information. This approach ensures that individuals’ privacy is protected while allowing for convenient and secure online identity verification.
The government’s focus on improving safety online is a response to recent hacking incidents targeting government agencies. Senator Katy Gallagher, the minister for finance, assures Australians that the proposed legislation will provide accountability, safeguards, and oversight in protecting identities. By establishing a national Digital ID system, the government aims to create a trusted and consistent way to verify individuals’ identities online, without the need for physical information exchange.
Despite initial concerns about privacy and authoritarianism, the government emphasizes that the Digital ID system is not a unique number or a new form of identification. It is simply a convenient way to verify individuals’ identities online using existing government-held documents. The system also offers benefits to businesses by providing enhanced security and a cheaper way to protect customers’ personal data.
The CBA’s submission highlights the potential for interoperability with the private sector through its ConnectID system. ConnectID, currently used by the CBA and the National Australia Bank (NAB), is the first private digital identity exchange system accredited under the Australian government’s Trusted Digital Identity Framework. This system allows users to verify their identities digitally without repeatedly sharing personal data.
To ensure the protection of personal data, the CBA emphasizes the need for increased oversight of the “relying parties” that receive this information. By implementing appropriate safeguards and regulations, the government can instill confidence in the system and address concerns about privacy.
In conclusion, the Commonwealth Bank of Australia supports the proposed Digital ID legislation but emphasizes that it should remain voluntary and prioritize privacy and security. The five principles outlined by the bank provide a roadmap for creating a robust and interoperable system that maximizes the benefits of digital identity for all Australians. With encryption and oversight measures in place, the government aims to establish a trusted and convenient way for individuals to verify their identities online while safeguarding their personal information.
