Marie Johnson 2015 European Digital Identity Conference Managing Director and Chief Digital Officer 15 – 16 April 2015 The Netherlands Centre for Digital Business www.centre-for-digital-business.com themes… o Did we not see the digital era coming? o Digital Government and digital identity
Historical perspective o The Machinery of Government & the economy
Individuals – Businesses -Things o Proof of identity, payments…and politics o The rise of the platforms of the 21st Century
…and the obsolescence of silos
Digital Identity in Australia…. Digital Identity in Australia…. Identity Crime 2014... Financial Systems Report Inquiry …what’s happened in the past 30 years?
…did we not see the digital era coming? o Economic impact - $1.6 billion every year. o Australia does not have a single over- arching technology strategy in place. o Limited use of the Document Verification Service by Government agencies o Has not yet developed a detailed approach for the future of digital o Fraudulent identity credentials – cheap identities and easy to obtain o Recommended - national strategy for federated-style model of trusted digital identities.
Digital Identity in Australia…. a history: Australian Government digital & identity strategies
2014
Australia 1996 2000 2001 2006 2007 2008 2009 Card 1987
Visa Reliance 2014 Pricing Framework Transformation
2009 2010 2011 2011 2012 2013 2013 NCOA 2014
Digital Identity in Australia…. 1987 – the Australia Card
o A national system of identification.
o Main purpose: prevent losses to revenue through taxation system and through payment of Commonwealth Government benefits.
o Estimated additional AUD$800 million (1987) revenue collected within 3 years
o Thirteen Government agencies would use the Australia Card identity.
o Australia Card would assist in combating organised criminal activity – illegal immigrants also a target.
o Card would carry a unique number and cardholder’s name, address, photograph and signature.
o All Australian citizens and foreign nationals in prescribed categories - required to obtain a card.
o Initiative defeated in the Senate.
Digital Identity in Australia…. 1997 Prime Ministerial Statement – “More Time for Business” Economic Impact – Dealing with Government
o Three levels of gov in Australia o Commitment to easing compliance burden o Reforming regulatory processes o Using technology to transform how business interacts with government
o Single Entry Point – Business Entry Point
o Unique Business Identifier – Australian Business Number (ABN)
o Electronic management of transactions Digital Identity in Australia…. o Authentication
a long-held vision …
Australia Objectives Government Online 2000 “…to extend the benefits of the information revolution currently being experienced by individuals, and businesses in their dealings with each other to their dealings with government” “…bringing government closer to people to encourage people to interact with government.” “…tailored services that are easy to use and allow people to interact with government in a way which is natural to them.”
Digital Identity in Australia…. the past decade... Year 2000 Year 2013 “…getting all of its major services and interactions with individuals online…” “…deliver all appropriate Commonwealth “…Give people the option to services electronically elect to receive material on the Internet by from the government in 2001… digital form or in hard-copy, depending on their circumstance. complementing – not replacing – existing written, telephone, fax We will aim to provide all and counter services”. correspondence, documents and forms in digital form, as well as hard- copy, by 2017.”
o Agency by agency approach & perspective
o Increasing complexity
o Implications for identity and POI processes missing components transformation & client experience
Digital Identity in Australia…. digital and paper worlds collide… o 35 % government transactions still carried out manually (face-to-face, phone, correspondence) o Of those are carried out 'digitally‘ - unclear what percentage of these are actually completed end to end online. o Agencies still manage over 105 million voice calls per year. o Many of the 170 million face-to-face transactions were to prove identity. o Only four agencies provide interviews and/or customer services by digital video o 250 million letters still sent by Commonwealth Government each year. o Only 17 federal government agencies provide 'smart forms' to assist engagement with clients/customers.
Digital Identity in Australia…. what’s the scariest word on government websites?
Digital Identity in Australia…. Digital Identity in Australia…. 90% time business providing data to government…
Digital Identity in Australia…. business authentication platforms evolve… 2000 2003 2005
Australian Business Business brokerage Business Number Authentication services (ABN) Framework (BAF) o concept trials
o authentication o 2.9 million o notarization Australian business o time stamping registered for the ABN by 30 June 2000
Digital Identity in Australia…. 2010 - Standard Business Reporting (SBR) data – authentication & the machinery of government
o Potential benefits of SBR (ref Productivity Commission) - $500 million pa o Unlike paper and PDF forms – data is machine readable / analysable. o Taxonomy, standards and reference framework enable digital engagement between business and government.
Digital Identity in Australia…. Digital Identity in Australia…. 2006 – Access Card …imperative for reform…
o KPMG estimated Access Card would save AUD $3b in health and human services fraud over 10 years
o 70% of serious or organised identity crime involve the Medicare Card.
o 520 different Centrelink forms require a person to provide POI
o 100 million face to face transactions pa mostly for POI
o Man uses 40 false identities to commit Medicare fraud – 40 Medicare customers victims of ID fraud.
o Jodie Harris - 'Catch Me If You Can' Thief – 25 false identities.
Digital Identity in Australia…. 2006 – Access Card …smartcard technology Front of card Back of card
Card number
Signature
Card expiry date Optional date of birth
Examples of card design only Examples Card Surface Security Features
Optical Rainbow Variable Micro-printing Printing Device
Guilloche UV Light Relief Response
Digital Identity in Australia…. 2006 – Access Card …national economic platform…
Access Card Operating Environment What information can the concession providers see? What Off-line physical 6 Concession security Check features 2 does the rd card 3 Party Concession include? 3 Providers
Agency CSO Banks What information is stored on the chip? What 1 How is this information can information the agency see? EFTPOS accessed and Communication Networks protected? Networks 5
Medicare How is my On-line validity EsyClaim information check and card Transaction protected across update networks?
Update Layer 4 Access Card System Card What Customer Operations information can Management the service What information can System System Health Service System providers see? the agencies see? Providers Update Layer (e.g. GP, Pharmacy)
Dept. of Veterans’ Child Support Medicare Centrelink 7 Affairs Agency
Digital Identity in Australia…. 2006 – Access Card …3rd party and government concessions…
Connects to access card system Online terminal
Chip on card updated Docks access card in POS terminal Customer presents at OR rd Concession status POS at 3 Party Offline terminal Customer receives validated concession or Optional discount
enters PIN Docks access card in handheld terminal
Digital Identity in Australia…. 2006 – Access Card …smartcard infrastructure interoperability… designed to be interoperable across payments system including remote locations and offline mode…
Customer choice and interoperability at 500,000 POS terminals across Australia
Customer presents Offline Read of Chip Access Card or Customer ~ 200,000 NQDL at non- receives 3rd Party government service concession, Concession / concession discount Providers provider or service State & Local Gov Docks Access Card or Customer data Retailers NQDL in POS terminal accessed Entertainment at NQDL or Access Food & Lodging Card registration office Public Transport
enters PIN Concession status, POI validated
Digital Identity in Australia…. 2006 – Access Card …generational service delivery transformation through platform interoperability
Access Card Queensland Drivers Licence
• 16.7 million smart cards for health • 3.5 million smart cards for NQDL, and social services Industry / Marine Licencing & APA • Common process – registration POI • Common process – registration POI • Common timeframes – 2008 – 2009 • Common timeframes – 2008 – 2009 Service Delivery • Common standards • Common standards • Legislation • Legislation • Privacy and security • Privacy and security • Leveraging chip enabled terminal infrastructure for customer utility • Leveraging chip enabled terminal • Establish service delivery infrastructure for customer utility infrastructure for next 20 years • Establish service delivery infrastructure for next 20 years
15,000+ >200 Framework < 200,000 >9000 20,000+ 18,000+ Multiple Agency Licence 5,800+ for 3rd Party Police Medical Allied Health On Card Infrastructure Service Issuing Pharmacies >15m Concession Handhelds Practices Providers Applications Points Centres licences Providers
Framework National Smartcard Framework (incorporating ISO 24727)
Digital Identity in Australia…. …10 years later…
New South Wales o 123 different license types
o 2.8 million plastic cards issued each year
…but what is the national strategy? o Costing tens millions dollars …client choice and interoperability?
Digital Identity in Australia…. Digital Identity in Australia…. 2008 - BasicsCard
…leveraging industry standards & platforms …delivering quarantined welfare payments
Issues card & Establishes and maintains IM card account supports customer Payment data and instructions
Card Issuer Customer Management (Commercial Provider) $ (Centrelink)
Transaction Clearing/ Commonwealth Banker Data and Settlement (RBA) Responses Merchant Management (Centrelink) Cardholder Transports $ EFTPOS Transactions Manages transactions merchants and responses Acquirer EFTPOS Network (Commercial Provider) Uses BasicsCard for Standard network purchases/refunds
Merchants
Digital Identity in Australia…. is it a bank??? …identity, payments & information platforms…
Amazon – “Pay with Amazon” service
Commonwealth Bank- property guide app T-Mobile – chequeing service and ATM card
Digital Identity in Australia…. while the world moves to digital payments… o Plastic cards, paper cards, paper forms… o Fragment the client experience 2009 o Inhibit data and analytics o Administrative and red tape cost escalate
2009 Industry Paper
“Innovation in Payments and Information Services”
Digital Identity in Australia…. …how many online accounts… does a citizen / customer want or need? Immigration Online Account
Australia Business Account
DSS - The Vault Australia Post Digital Mail Box Job Seekers – Statements / The Vault
“ L ove fu t h e myGov l l a st a pp su r r s f 5 e!” or
Challenges to change Disrup ve industries Myth busters Current innova ons Commonwealth Bank Net Banking
Digital Identity in Australia…. …identity and the Internet of Things… …is government ready?
Oysters gathering data with sensors
Digital Identity in Australia…. Digital Identity in Australia…. …the client experience and the new platforms… …greeting a new Pope
Digital Identity in Australia…. …after 30 years of silos…the rise of the “platform”… 1984 1987 2006 2015 Medicare Card Australia Card Access Card Identity Crime & Financial Systems Inquiry
o Issued to individuals or o Identity card o KPMG estimated o “…complex federated families o All Australian introduction of Access network…20 gov agencies o Eligibility not based on citizens and Card would save $3b in manage over 50 million core Australian citizenship foreign health and human services identity credentials” o Primary purpose to prove nationals fraud over 10 years o Many gov issued credentials – eligibility o Prevent losses o 70% of serious or few or no security features o Recognised form of ID in to taxation organised identity crime o Fraudulent identity credentials opening bank accounts or revenue and involve Medicare Card – cheap and easy to obtain obtaining driver's license payment of o 17 cardboard, paper & o 170 million face-to-face gov o On ‘100 point POI scale’ - benefits simple plastic cards transactions – many to prove Medicare card 30 points o Rejected by o 110 million face to face identity o Technology – 30 year old, the Senate. transactions for POI plastic, no pin, no chip o Terminated by gov
Economic Platforms Payment Platform – New Payment Platform Identity Platforms – Infrastructure and Services Reciprocity Frameworks Data Architecture and Standards Mobile Telecommunications Platforms …after 30 years of silos…an urgent call to action… …lack of digital identity and payments strategy … driving systemic risk & inhibiting innovation…
Issues Recommends o Fragmented identity infrastructure – o Trusted digital identity framework – business, lack of strategy, lack of investment citizens, non-citizens, things, biometrics Reciprocity of identity credentials eg bank o Fragmented, bespoke, siloed credentials for online authentication to gov payments – lack of strategy Contestability of identity services driven by o Highly repetitive, manual processes standards and customer choice o Impact on cyber security Operate as national economic infrastructure o 35% gov transaction – manual Document Verification Service - a greater role o Implement WoG “Strategic Payments Capability “No Welfare Reform without o Only 17 out of 100’s gov agencies Digital Payments Transformation have smart forms Architecture” – regulated and Digital Identity Strategy” o Establish “Digital Transformation Commission” Centre for Digital Business 2014
Announcement “Identity Crime Report “Financial System Inquiry 2014” 2014” “Digital Transformation Office”
o Fragmented national identity infrastructure in Recommendation 15: Australia Develop national o Fraudulent gov strategy for federated- credentials style model of trusted o DVS limited gov usage digital identities o AUD$1.6 B pa impact
Digital Identity in Australia…. digital identity ecosystem
People Organisations Things
R S E T C A I N ABN: 11635839852 P @.com D @.com.au R @.gov.au A O R C D I S T Y
Brokerage Services Assurance
Registration Authentication Processes Verification Notification
Registers - Social
Engineers Medical Registers - Professional Lawyers Accountants
Births/Deaths Cadastre Drivers Tax Registers - Gov Passport Business Electoral Medicare Federal / State/ Local
Digital Identity in Australia…. digital identity ecosystem
People Organisations Things
R S E T C A I N ABN: 11635839852 P @.com D @.com.au R @.gov.au A O R C D I S T Y
Brokerage Services Assurance
Registration Authentication Processes Verification Notification
Registers - Social
Engineers Medical Registers - Professional Lawyers Accountants
Births/Deaths Cadastre Drivers Tax Registers - Gov Passport Business Electoral Medicare Federal / State/ Local
Digital Identity in Australia…. identity platforms and the digital age “identity silos” v. “identity platforms”
Australian19th Government Century & 20th Century Reform Agenda21st Century Authority of agencies Architecture of platforms
o Platforms not agencies o Agencies and systems o Dominance of o Dominance of the silos architecture & standards o Policy frameworks not o Proliferation & evolution coping of identity concepts o Manual & repetitive o Process automation & processes algorithms o Discretionary o Can no longer be wild processes west of silos o Discretionary o Investments & investments in systems maintenance not subject o Duplicated to agency discretion investments o Need to be managed like o Not citizen centric air traffic control systems o Citizen choice
Digital Identity in Australia…. Let’s stay connected :-)
www.centre-for-digital-business.com
+61 418 613 138
Marie Johnson
Managing Director and Chief Digital Officer