Canada needs a digital ID system, bankers association says

The Department of Finance last week officially launched its public consultation on the merits of open banking

The Canadian Bankers Association says Canada must create a digital identification system, potentially utilizing technology such as blockchain, biometrics and document review over a live video connection.

The association’s chief executive says moving away from a paper-based, face to face process towards a modern identification system of this kind is needed to “unlock the full potential” of the digital revolution that is underway.

Neil Parmenter added in his speech in Toronto today that the need for digital identification “will only grow more urgent” as Ottawa explores the possibilities of open banking, the payments system is modernized and blockchain and artificial intelligence move into “new frontiers.”

The Department of Finance last week officially launched its public consultation on the merits of open banking, a framework that would allow consumers and businesses to permit third parties such as fintechs to access their financial data to provide innovative services.

Parmenter says the CBA is calling for a “federated” model of digital identification which would create linkages between federal and provincial systems, which hold information such as social insurance and drivers’ licences, respectively.

He says this digital identification system, which the CBA previously outlined in a white paper, could make it possible to authenticate an individual’s identity electronically using multiple digital reference points from different systems.

“Instantly verifying who someone is using multiple digital reference points is more secure than relying on a photocopy of a drivers’ licence,” Parmenter told the Economic Club of Canada. “Because this digital network is connected, yet decentralized, the risk of compromising the system is reduced by eliminating ‘honeypots’ of data that hackers tend to target.”

The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Federal minister to speak in Vernon

Greater Vernon Chamber welcomes middle class prosperity minister to talk money

Vernon PAC takes stand against dating violence

KSS to host presentation to equip parents with tools to spot unhealthy, violent relationships

VIDEO: Vernon man says stranger breaks in while family slept

Resident shares doorbell cam footage in hopes to ID suspect who raided his home and fridge

Two-car collision in busy Vernon intersection

Firefighters, RCMP and ambulance are on scene

VIDEO: Protesters set up beside Vernon highway

North Okanagan-Shuswap MP responds to countrywide blockades

UPDATE: Protesters say they will maintain blockade near Chase “as long as it takes”

Signs at protest site say in solidarity with Wet’suwet’en

Deaths on popular Shuswap trail ruled accidental

B.C. Coroners Service reports on fatal falls in May and July 2019

Study says flu vaccine protected most people during unusual influenza season

Test-negative method was pioneered by the BC Centre for Disease Control in 2004

Saskatchewan and B.C. reach championship round at Scotties

British Columbia’s Corryn Brown locked up the last berth in Pool B

‘Chain reaction pile up’ closes southbound traffic on Coquihalla Highway

Black Press Media has reached out to RCMP, paramedics for details

B.C. lawyer, professor look to piloting a mental-health court

In November, Nova Scotia’s mental-health court program marked 10 years of existence

EDITORIAL: Thoughtless posts to Facebook cause real harm and stress

At the risk of resembling a broken record, it needs to be… Continue reading

COLUMN: Not an expert on First Nations government structures? Then maybe you should calm down

Consider your knowledge about First Nations governance structures before getting really, really mad

Trans-Canada Highway closed between Salmon Arm and Sicamous

Drive BC reports the closure is the result of a vehicle incident.

Most Read