By Andrew Black, Managing Director, ConnectID

As we mark the first anniversary of ConnectID this October, I find myself reflecting on what has undoubtedly been a year of tectonic shifts in Australia’s digital identity landscape.  

The progress we’ve seen across the private sector, governments, and legislation has been significant—perhaps the most substantial in our market ever. From the adoption of mobile driver licences to the Federal Government’s Digital ID Act and the increasing demand for secure digital identity solutions from the private sector, the changes have been profound. 

Yet, I can’t help but feel we’re missing a critical step – as the digital identity landscape evolves, we need to ensure it aligns. The progress has been significant and positive, but the risk is that different solutions are evolving in isolation, drifting apart rather than converging. The current lack of cohesion between public and private initiatives, particularly around interoperability, will undermine the very progress we’re celebrating. 

One Year Moving Fast
As we celebrate our first year, one of ConnectID’s primary goals is to bring the ecosystem together, linking both public and private initiatives. 

Over the past 12 months, we’ve made considerable strides in this space. Going live with, the Commonwealth Bank, NAB and ANZ Plus as ConnectID Identity Providers were major milestones. Today, more than 10 million customers can now use their bank to securely prove their identity online via ConnectID, and that number continues to grow 

We’ve also welcomed businesses across a wide range of industries to our trusted network, including Lendela, Refundid, and RentBetter; demonstrating the far-reaching benefits of a digital identity solution for the business sector.  

Beyond building our ecosystem within Australia, we’ve also created the Japan-Australia Cross-Border Interoperability Working Group in partnership with Japanese companies Dai Nippon Printing and MUFG Bank, starting a broader conversation around digital identity and interoperability beyond Australian shores. 

This year ConnectID won the Ping Identity Innovation APAC Regional Award and we were finalists in three of Fintech Australia’s, Finnies categories, which is testament to the fact that digital identity is becoming a cornerstone of Australia’s digital future. 

A Year of Milestones
The past year has also been pivotal, not just for ConnectID, but for the broader digital identity industry in Australia. The Digital ID Act 2024, passed by the Parliament, represents the next iteration of the Digital ID legislative framework for Australia. We are witnessing growth across the entire ecosystem, with many solutions and providers from the private sector, government, and state-level initiatives moving forward.  

This evolving regulatory environment has also brought ongoing financial support. Successive governments funding for the digital ID scheme has exceeded $1 billion over the past decade. 

Other significant steps include the Australian Competition & Consumer Commission (ACCC) being designated as the Digital ID Regulator, and the Government’s Trust Exchange (TEx) initiative, which aims to develop a third-party shareable verification system.

Despite so many encouraging changes, the reality is we still don’t know how the digital identity landscape will shape up in Australia. There are fewer conversations and interactions than is necessary, and initiatives seem to be moving in different directions. 

For example, while the Federal Government is developing the Australian Government Digital ID System (AGDIS), some states are creating their own solutions. Several private players are also developing alternative technologies and making progress within this space. In an ideal world, these would work together.

The Path Forward: Collaboration
How can we avoid the risk of finding ourselves isolated in our market segments separated by different standards, protocols, and technologies that don’t work across our entire digital landscape? 

A siloed system will be less efficient, it will complicate oversight and rule enforcement, and, worse, it will frustrate users and hinder widespread adoption meaning the benefits of Digital ID for Australian’s will not be realised. 

Interoperability between multiple identity exchanges and service providers is central to making the entire ecosystem simpler, safer, and more accessible for consumers. 

We must not lose sight of the broader goal of creating an interoperable, secure, and accessible digital identity system for all Australians. If we fail to bridge the growing gaps, we risk embedding this fragmented system that erodes trust and slows adoption and innovation. 

As an initiative that unites several industries and segments of the economy, ConnectID is well-placed to support governments in connecting these efforts and help avoid this harmful fragmentation. 

The future of Australia’s digital identity landscape depends on collaboration between governments and the private sector to ensure that all citizens can participate safely and securely in the digital economy. The tectonic plates of digital identity have shifted this past year—now it’s up to us to make sure they align. 

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