Smart data schemes
Right to Rent, Right to Work and Open Banking are all examples of existing smart data schemes. Smart data is simply the secure, consented sharing of customer data with authorised third parties (ATPs) who can then use the data to provide improved services, such as identity verification.
The UK Government is not proposing to create any new services itself, instead, they expect the provisions in the Bill to spur competition and innovation in the market.
MyIdentity
Propertymark worked with Etive and other industry stakeholders to develop a digital identity trust scheme designed specifically for home buying and selling, which is one of the initiatives that will benefit from the governance provided by the DPDI Bill.
MyIdentity allows the digital identity of a buyer or seller to be verified once and then shared by them with estate agents, conveyancers, mortgage lenders, and any other party involved in the sales transaction, reducing customer friction and duplication of effort.
Etive is now working with the Home Builders Federation to further develop the scheme to support homebuilders in complying with Regulations and make identity and anti-money laundering checks easier, faster, and more secure.
Sector confidence will increase uptake
Despite the advantages, there has been some reluctance from the sector to take up digital identities due to a lack of clarity on where liability would fall if any part of the system failed, how systems would be maintained and paid for, and who would regulate the process.
The DPDI Bill seeks to answer many of these questions and establish a framework for the provision of digital verification services which can be used with the same confidence as paper documents.
Propertymark represented the views of our members during the development of UK Government policy, feeding into work by the Department for Culture, Media and Sport (DCMS) on digital identity policy in the home buying process.
Barriers to innovation
Currently, data protection is governed by the UK General Data Protection Regulation (UK GDPR) and the Data Protection Act (DPA) 2018. The UK Government believes that some elements of these rules create barriers, uncertainty and unnecessary burdens for businesses and consumers.
The DPDI will make changes which allow customer data to be shared so that services, such as mortgage lending and conveyancing, can be delivered more efficiently.
Oversight of the trust framework
The DCMS proposes to govern the framework themselves initially, through a new function called the Office for Digital Identities and Attributes (OfDIA).
The OfDIA will set up a governance and coordinating role for the trust framework and trust mark and gather data on the operation of the market to establish a separate governance body in the future.
