The UK's moment to lead digital verification: A roadmap to economic growth and financial security

Finextra

23-06-2025

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As London Tech Week unfolds, the spotlight is on the technologies shaping our future, and one of the most important is digital verification. With more of our lives happening online, from banking to healthcare to everyday shopping, the need for secure, reliable ways to prove who we are has never been greater.
That's why digital verification is high on the agenda this year. The UK has a unique opportunity to lead the way by creating a national Digital Verification Service (DVS) - a secure system that could transform how we protect identities, fight fraud, and grow our economy.
A recent report by the City of London Corporation and EY estimates that a well-designed DVS could unlock over £4.8 billion in economic benefits by 2031. But to get there, we'll need smart investment, strong leadership, and close collaboration between government, industry, and tech innovators.
Investing in the future of finance
The digital economy is changing how we live and work. In financial services especially, digital verification is becoming essential. As AI and cyber threats grow more complex, we need better tools to protect people and businesses.
A national DVS would act as the backbone of the UK's digital economy. It would help banks, insurers, fintechs, and others verify identities quickly and securely cutting costs, reducing fraud, and improving customer trust.
To make this vision a reality, the government must take the lead. That means setting clear rules, building a strong governance framework, and encouraging partnership.
One key recommendation from the City of London report is to scale an independent body to manage the DVS. This group would ensure the system is secure, transparent, and trusted helping to attract more investment and innovation in the UK's digital economy.
A £4.8 billion opportunity
The numbers speak for themselves. Investment in the UK's digital verification sector jumped from £90 million in 2014 to £2.5 billion in 2023. That growth shows just how much demand there is for secure digital ID solutions.
With the right framework, a national DVS could:
Faster, more secure onboarding and compliance will improve efficiency and customer experience
Boost innovation and investment
Make the UK more competitive globally
Tackling fraud: A national priority
Fraud is one of the biggest threats facing global financial services. In 2023, in the UK alone, financial institutions reported billions in losses, much of it linked to identity theft. A national DVS could be a powerful tool in the fight against these crimes.
By using secure digital IDs, banks and other organisations can verify identities more accurately and quickly. This makes it much harder for criminals to impersonate others, helping to stop fraud before it happens. It also reduces the cost of fraud prevention and compliance, saving money for businesses and, ultimately, consumers.
Building trust through strong governance
For a digital verification system to work, people need to trust it. That means having clear rules, strong privacy protections, and a system that's transparent and well-managed.
The City of London Corporation's report recommends scaling an independent DVS to act as a trusted mid-point. This would enable information to be shared securely between customers and institutions. This body would make sure the service meets high standards, protects personal data, and works in the public interest. With the right oversight, the UK can build a system that's not only effective but also earns the trust of the public and the business community.
The UK's path forward
The UK is at a turning point. As the digital economy grows, so does the need for secure, reliable ways to prove who we are online. A national Digital Verification Service could be the key to unlocking safer financial services, reducing fraud, and driving billions in economic growth.
This is why digital verification is such a hot topic at London Tech Week. It's not just a technical issue - it's a national opportunity. With the right leadership, investment, and collaboration, the UK can lead the world in building a digital economy that's secure, inclusive, and built for the future.
Now is the time to act. By embracing digital verification, the UK can protect its citizens, strengthen its financial system, and secure its place as a global leader in digital innovation.