Case Study: Enabling a Standards-Based Digital Identity Ecosystem in Australia

The Challenge: Protecting Data, Reducing Fraud, and Streamlining Onboarding

Australia has experienced a surge in high-profile data breaches, with more than half its citizens having sensitive personal data – such as passports and driver’s licenses – compromised and leaked to the dark web. This widespread risk is largely due to the need for individuals to repeatedly submit copies of their identity documents to various service providers, resulting in millions of digital copies stored on unprotected systems.

To break this cycle and restore trust in digital identity verification, a new market-led initiative was launched to create a national, standards-based verified identity ecosystem. The goals were ambitious:

• Reduce Data Exposure and Enhance Privacy – Remove the need for people to share ID documents across multiple platforms.
• Operational Efficiency  – Minimise the burden on organisations to store and secure large volumes of personal information.
• Streamline Digital Onboarding – Make it easier and faster for people to verify their identity and access services.
• Deliver a Unified, Trusted Experience – Address the fragmented identity landscape and create consistency across industries.
• Enable Regulatory Compliance – Align with evolving KYC, AML, and privacy requirements.
• Ensure Future Scalability – Build a model that could be adapted across sectors and exported to other jurisdictions.

The Solution: A Two-Party, Standards-Based Secure Digital Identity Exchange

In 2023, the sponsoring organisation partnered with Raidiam to design and deliver a secure, interoperable platform aligned with the Australian Digital Identity Framework.

The solution establishes two primary roles:

• Trusted Parties (banks) – Verify customer identity and confirm specific attributes without sharing underlying data or documents.
• Relying Parties (merchants, telcos, and service providers) – Accept attestations instead of collecting physical IDs or uploads.

Raidiam’s trust framework solution and infrastructure underpin this exchange, enabling consumers to use their existing mobile banking logins to verify their identity for digital transactions. This offers a secure alternative to sharing traditional physical IDs or uploading documents online.

By early 2025, the system was live, with several of Australia’s largest banks acting as Trusted Parties and merchants across sectors such as retail, telecommunications, and real estate integrating as Relying Parties, enabling secure digital identity verification for over 10 million customers.

Core Components of the Solution

Trust Framework & Governance

Raidiam's approach ensures robust standards and clear roles for all participants:

• Comprehensive governance model defining rules, onboarding requirements, and legal standards.

• Guidance and support for smooth industry adoption.

Secure, Interoperable Infrastructure

Our technology links trusted identity providers and service partners efficiently:

• Raidiam Connect – Secure, interoperable trust platform via standardized APIs.

• SDKs for easy integration and rapid deployment.

• Gold-standard reference implementations tested before live launch.

Customer-Centric Data Sharing

Privacy and user control are at the heart of the system:

• Consent-led data sharing with bank app approvals.

• Attribute-based attestations – banks confirm customer details without sharing underlying documents.

• Privacy by design – data is never stored by intermediaries.

Commercial Flexibility

The model creates new value for participants:

• Trusted Parties share revenue paid by Relying Parties.
• Verification transforms compliance into a business benefit.

The Outcome: Secure, Frictionless, and Transferable Digital Identity Verification 

The verified identity ecosystem is bringing measurable benefits to individuals, businesses, and the wider digital economy.

Streamlined Onboarding

The solution brings efficiency and consistency:

• Faster onboarding times, improved user experiences.

• Reduced friction increases conversion rates for businesses.

Enhanced Security & Compliance

Security and trust are delivered through every layer:

• Minimized risks and reduced data breaches.

• Alignment with evolving KYC, AML, and privacy requirements.

Market Leadership & Expansion

Designed with portability and growth in mind:

• Scalable to new sectors and markets.

• Over 10 million Australians already onboarded.

Empowered Consumers

Putting users in control:

• Consumer-driven consent and control of data sharing.

• Reduces the risk of personal data being stored by multiple providers.

Sustainable Business Models

Banks and verification enterprises benefit from new revenue opportunities:

• Revenue-sharing makes the ecosystem financially viable for participants.

Strategic Impact: A Blueprint for Global Digital Identity

By providing the trust and technical framework for a standards-based digital identity ecosystem, Raidiam has enabled Australia’s banks, merchants, and consumers to participate in a secure, privacy-led, and scalable solution. With over 10 million Australians already onboarded and commercial models unlocking revenue for partners, this serves as a benchmark for digital identity innovation worldwide – proving that robust privacy and commercial value can go hand in hand.