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Fintech Market Overview

This article does not constitute legal advice.

Client identification in the UK

Fintech Software

There is no official national digital identity in the UK at present. However, one of the recommendations in the 'Kalifa Review of UK Fintech' was that the UK government should establish a digital ID trust framework for both corporates and individuals, ideally based on a federated model so that data is not concentrated in one place. The Department for Digital, Culture, Media and Sport is progressing an ambitious agenda on data policy and digital identities in conjunction with the joint UK Finance and Innovate Finance Task Force. Access to data for verification purposes should be controlled and consented to by the individual and should be limited to what is truly necessary for the data recipient to have the level of assurance that they need to transact.1

In the meantime, a number of fintech firms are employing ever more sophisticated digital onboarding services. The neo-banks in particular have become very good at onboarding clients with little more than photographs of passports and a short video. Meanwhile, the market for firms that claim to be able to use cryptographic hashing to create a digital identity for an individual is growing rapidly in the UK. If successful, these services will enable individuals to verify their identity to third parties using only a very small amount of data. This can be in the form of their personal hash, which is a cryptographically generated code combining all elements of that individual's identifying personal data, with a checksum item forming part of the personal hash calculation, such as the individual's year of birth. In this case, the year of birth acts as a way of validating the personal hash and, therefore, the identity of the individual in question.1

Artificial intelligence in financial products

Fintech in the UK

Fintech in other countries

Let's introduce you

UK Fintech Lawyers

Maxim Minaev

Maxim Minaev

We provide legal and organizational services for the creation, structuring and development of fintech companies

Languages: EN LV RU

Dr Irena Dajkovic

Dr Irena Dajkovic

International law firm authorised by the UK Solicitors Regulation Authority

Languages: EN FR

Ilya Druzhinin

Ilya Druzhinin

I have over 22 years of experience in legal practice, most of which is accompanied by e-com and fintech projects

Languages: RU EN

Notes
  1. https://thelawreviews.co.uk/title/the-financial-technology-law-review/spain
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