The City of London Corporation has called for input from technology companies on its blueprint to develop digital verification services in the financial sector.
The Corporation’s proposal is for a voluntary digital verification system that securely connects identity providers with other financial services providers that require identity checks.
In practice, the authority said this would mean that once a user’s identity was verified by one financial institution, this information could be securely shared with others. This would reduce the number of times individuals have to provide proof of identity and the time taken by firms to confirm it.
The verification orchestrator, a neutral third-party managing verification data flows, would be vital in detecting and preventing fraud, the Corporation said, adding that it builds on its wider efforts in this area that include leading the UK’s national policing response on fraud, cyber and economic crime.
The body expects that a successful implementation of a digital verification system could offer boosts of £5 billion to the UK economy over five years, driven by fraud prevention and digital infrastructure improvements.
“Fraud is a plague on banks’ balance sheets, costing them over £1 billion last year,” said Chris Hayward, policy chairman of the City of London Corporation. “To help mitigate this, we need a digital-first economy that instils trust in the system and delivers clear benefits to consumers through faster, safer, and more seamless access to financial services. It’s this conviction that has motivated our work to champion the development and introduction of a digital verification service.
“Innovation enables new dangers – but it also solves them too. We’re asking companies who can provide this infrastructure to step forward and lead the sector’s fightback against fraud.”
Earlier in the week, the City of London police force revealed that over £102 million was lost to romance fraud in 2025.
