A new government-backed digital identity trust mark could help mortgage brokers and lenders reduce repeated identity checks and accelerate applications as reusable digital ID moves closer to mainstream adoption.

UK CertifID is being introduced under the government’s statutory Digital Verification Services (DVS) framework, allowing qualifying providers to demonstrate that their services have been independently certified against government standards.

Services must be certified against version 1.0 of the UK Digital Verification Services Trust Framework and listed on the statutory DVS register before they can be licensed to display UK CertifID.

For the mortgage industry, the development could ultimately allow identity information verified at one stage of a customer’s journey to be relied upon elsewhere, reducing the need for borrowers to repeatedly provide the same personal information and documentation to brokers, lenders, estate agents and conveyancers.

REUSABLE DIGITAL ID

The government has identified reusable digital identity as an important component of its plans to modernise homebuying, alongside greater sharing of verified property and transaction data.

HM Treasury has also confirmed that regulated businesses can use registered digital verification services when completing identity checks under the Money Laundering Regulations, although responsibility for complying with wider AML requirements remains with the regulated firm.

Chris Williams (main picture), founder of mortgage and homebuying transformation consultancy Novus Strategy, believes this could enable different participants in a mortgage transaction to begin work earlier and simultaneously.

He said: “After years of waiting, we’re now on the cusp of only having to do that once, allowing other parties involved in a transaction to make faster, earlier and simultaneous progress on things like credit checks, KYC, underwriting and searches.

“This is why the UK property market is set to be one of the main beneficiaries of UK CertifID.”

BROKERS AND LENDERS

Williams argued that the trust mark could also give lenders and other regulated firms greater confidence in identity checks undertaken earlier in the customer journey.

He said: “It’s also how other parties, such as conveyancers, will know that an ID check done earlier by an estate agent or mortgage broker was fully compliant and can be reused.

“It’s Smart Data in action, as verified identity becomes a reusable artefact that travels with the transaction.”

The government’s wider homebuying reform programme is seeking to make information available earlier and reduce duplication between professionals involved in transactions, including through greater use of digital identity, property data and interoperable systems.

Williams added: “After years of transformation fatigue, the industry should finally be able to start turning things around now that reusable digital ID is gathering pace.”