A new digital ID system is coming to Australia, making it easier and safer for customers to verify their identity online.
This means less paperwork and less risk of data breaches for your business. Here’s a deeper dive into how it can benefit your business:
What is it?
The new system will allow Australians to use a single digital ID to access both government and private sector services online. This could include things like opening a bank account, applying for a rental property, or verifying your age online.
Phil Goldie, vice president and managing director, Okta Australia and New Zealand said: “Digital Identity is the cornerstone of modernized service delivery in Australia, and it is encouraging to see the Federal Government commit $288.1 million in funding to boost its adoption.
With citizens increasingly expecting seamless online interactions, the significance of secure and convenient digital identity cannot be overstated. Australia is a nation always under attack, with cyber-attacks costing the economy $33 billion each year. The Government is addressing this head-on with regulation, continued investment in digital identity, and digital infrastructure. The upgrading of the Credential Protection Register is a proactive step in minimizing the effect of any identity theft.
“The allocation of $23.4 million for piloting government digital wallets and verifiable credentials is a proactive step towards enhancing identity security, and the budget allocations to Services Australia and the Attorney-General’s Department highlight a holistic approach towards ensuring the efficiency and security of the Digital ID ecosystem. By prioritizing privacy and supporting data standards functions, this funding reinforces the foundation of trust upon which Digital ID relies.”
Benefits for your business
Improved Customer Experience:
- Effortless Onboarding: Imagine saying goodbye to lengthy application forms and piles of paperwork. The Digital ID system allows customers to verify their identity quickly and securely with a single digital credential, significantly reducing onboarding times. No more waiting days for applications to process – happy customers mean repeat business!
- Enhanced Security: Data breaches are a constant threat, impacting customer trust and costing businesses dearly.The new system employs robust security measures that minimize data sharing. Customers only share the necessary information with you, reducing the risk of exposure in case of a breach. This builds trust and fosters a more secure online environment.
- Seamless Integration: Integrate the Digital ID system seamlessly with your existing online processes. Whether it’s account opening, age verification for online purchases, or accessing exclusive features, the system ensures a smooth and efficient customer journey. Less friction translates into satisfied customers and increased conversions.
Reduced Operational Costs:
- Goodbye Paperwork! Say goodbye to the time and resources spent physically handling and storing countless copies of ID documents. The digital system eliminates the need for physical verification, saving you space and streamlining your back-office operations. Free up your staff to focus on what matters most – providing excellent customer service.
- Faster Processing: Imagine approvals taking minutes instead of days. With lightning-fast identity verification, you can expedite your approval processes for loans, subscriptions, or new accounts. This translates to increased efficiency, higher customer satisfaction, and the potential to onboard more customers.
- Reduced Risk of Fraud: Traditional verification methods have limitations, leaving businesses vulnerable to fraudulent activities. The Digital ID system uses robust authentication protocols to verify user identities,significantly reducing the risk of fraudulent applications and transactions. This allows you to focus on serving legitimate customers with confidence.
Adaptable & Inclusive:
- Phased Rollout: The system will be implemented in stages, allowing businesses time to adapt and integrate it into their existing processes. State and territory governments will be the first to join in late 2024, with private businesses following within two years. This ensures a smooth transition for all stakeholders.
- Non-Digital Options Still Available: The government prioritizes inclusivity. Businesses are required to offer alternative, non-digital options for identity verification alongside the digital system. This ensures accessibility for those who prefer traditional methods.
Embrace the Future:
The Digital ID system marks a significant leap forward in the digital landscape. By proactively adapting and integrating this new technology, businesses can gain a competitive edge. Not only will you streamline operations and reduce costs,but you’ll also enhance customer experience by offering a faster, more secure online environment.
Timeline
- State and territory governments will be the first to join the system later in 2024.
- Businesses can join within two years.
- You will still need to offer non-digital options for customers who prefer not to use the system.
What to do now
- Stay informed about the rollout and how it will affect your business.
- Consider how you can integrate the system into your existing processes.
- This is a positive development for businesses and customers alike. By embracing the new digital ID system, you can make it easier and safer for your customers to do business with you.
Visit the Australian Government Digital Identity website: https://www.digitalidentity.gov.au/
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