81% of UK Adults Demand Bank Accountability for Failed Identity Verification Checks

A new survey of 1,000 UK adults reveals a significant trust gap in digital banking security, with 69% of Britons doubting their bank's ability to identify imposters. As deepfake technology advances, fintech professionals face mounting pressure to balance rigorous identity verification with user experience, while 81% of consumers hold banks liable for third-party security failures.

What was announced

Digidentity released research highlighting consumer expectations and fears regarding identity fraud in the UK banking sector. The study found that while 80% of respondents expect financial institutions to detect AI-generated videos or deepfakes during selfie checks, there remains a misunderstanding of traditional security; 53% of those surveyed still believe a one-time passcode (OTP) sent via SMS or email is sufficient to prove identity on its own.

The data suggests a high demand for technological upgrades, as 78% of UK adults would feel more confident using a bank that employs advanced identity verification methods. However, this demand for security is tempered by a desire for efficiency. Approximately 79% of respondents expect identity checks to become smoother over the next five years. For those willing to trade time for safety, 62% stated they would accept no more than two additional minutes of verification procedures if it resulted in a significant reduction in impersonation risk.

The findings arrive as the industry faces increased scrutiny over fraud responsibility. Bank of England governor Andrew Bailey recently called for social media platforms to take more action against scams, but the research indicates that the public places the ultimate burden of proof on the banks themselves, with more than four in five respondents stating banks should be held responsible if their identity verification provider fails to stop fraud.

"If a criminal gains control of your email, the security code meant to protect you could land straight in their hands. Banks cannot assume that getting through a check means that the right person has access."

Jonathan Evans, UK Country Manager at Digidentity

The companies involved

Digidentity is a provider of digital identity and trust services, operating as part of the Solera group. The company focuses on providing high-assurance identity verification solutions that meet international standards, serving both governmental and private sector clients. Its market position is defined by its role as an identity service provider (IDSP), facilitating secure digital interactions through remote onboarding and authentication technologies.

Based in the Netherlands but maintaining a significant presence in the UK market, Digidentity operates within the broader Solera ecosystem. Solera is a global leader in risk and asset management software-as-a-service, data, and services. By leveraging Solera's global reach, Digidentity provides the infrastructure necessary for banks and other regulated entities to comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. This corporate backing allows the firm to scale its identity trust services across various jurisdictions, addressing the growing threat of sophisticated digital fraud like synthetic identities and AI-driven impersonation.

What this means

The industry is reaching a tipping point where traditional multi-factor authentication, specifically SMS-based OTPs, is no longer viewed as a gold standard by security experts, even if half the public remains unaware of its vulnerabilities. The real pressure now lies on bank procurement teams. With 81% of consumers holding banks responsible for the failures of their third-party ID providers, the "vendor excuse" is effectively dead. Financial institutions must now vet their technology partners not just for compliance, but for their ability to defeat generative AI. The challenge is delivering this without increasing friction, as the two-minute tolerance window for extra checks is remarkably narrow for the level of security required.