Dutch banks are banding together on a digital identification service which will let online customers use their login details to access other commercial and government sites.
The banks, through the Dutch Payments Association, are working on a pilot which will go live next year and let participating customers use their online banking identity to access services from the Dutch tax authority and an insurance company. No banking details such as account balance or payment details are exchanged, stresses the Association.
Participants will have to give their express consent to their bank to hand over personal information and each partner organisation may get different information. "So the bank can ask for approval on behalf of one company for the transmission of the name and address of the client and on behalf of another company for a simple age check," says a statement.
The Dutch Payment Association says that ultimately the service will mean consumers will only need to use one identification method, which is both easier to remember and more secure than the current raft of usernames and passwords required by different online providers.
Meanwhile, for merchants, the system means that users do not need to sign up when they first visit a site, boosting conversion rates. In addition, the cost of customer due diligence and credit risk assessment is slashed because of the high level of confidence in using online identities verified by banks.
The banks benefit from being more useful to their customers and the chance to expand their existing identification and authentication services.