Do private banks and fintechs in australia accept the digital id and which ones specifically?
Executive summary
Australia’s government Digital ID system is live and already being used by major banks through a private exchange called ConnectID, meaning several private banks and a growing set of fintechs do accept digital identity for onboarding and verification today; the broader private‑sector participation (including more banks, telcos and retailers) is formally scheduled to expand under legislation and programs through late 2026 [1] [2] [3].
1. The current reality: big banks are already using a private Digital ID exchange
The four largest Australian banks—Commonwealth Bank (CBA), National Australia Bank (NAB), ANZ (through ANZ Plus) and Westpac—have integrated ConnectID, an Australian Payments Plus digital identity exchange, and are offering millions of customers the ability to verify themselves and securely share identity data with third parties (over 10 million customers noted) [1] [4] [5].
2. Which private banks specifically accept Digital ID today
Commonwealth Bank, NAB, ANZ (via ANZ Plus) and Westpac are explicitly named in reporting as providers and participants of ConnectID, meaning they accept and can vouch for customers’ digital identity transactions through that network [1] [4] [5] [6].
3. Fintech adoption: who’s plugged into the network now
Several fintechs and digital platforms have either integrated ConnectID or been named in pilots and partnerships—examples reported include One Click Group (a fintech integration) and loan‑matching platform Lendela joining the ConnectID network to streamline identity and affordability checks [1] [5]. International vendors and technology partners are also running cross‑border tests with Australian institutions (for instance a technical test involving MUFG, DNP and an Australian financial institution referenced interoperability trials) [7].
4. Government rollout and regulatory timetable that shapes private uptake
The Digital ID Act and associated rollout set a phased expansion that explicitly enables reciprocal use between government and private sector providers by late 2026, and the government has signalled private sector accreditation and participation windows (private providers to be able to join the government system from 30 November 2026 and reciprocal use by December 2026) [3] [2] [8]. That timetable explains why some private adoption is already live via ConnectID while full economy‑wide private participation remains incremental [2].
5. Why banks moved early and why others may be cautious
The banking sector has framed Digital ID as a way to reduce fraud and the need to store customers’ identity documents, and the Australian Banking Association praised a voluntary Digital ID as enhancing cyber defence—this commercial and security rationale helps explain why the big four have adopted ConnectID [9]. At the same time, legislative adjustments and a phased accreditation approach—plus scrutiny such as an ANAO audit into governance and risk management of the AU$1bn scheme—signal regulatory and governance concerns that could slow or condition further private sector acceptance [10] [8].
6. Practical picture for consumers and businesses today
In practice, that means many Australians can already use bank‑provided digital identity services via ConnectID when dealing with participating businesses (banks and some fintechs), but the reach is not yet universal across all banks, telcos or retailers until private providers are fully accredited and integrated under the government’s phased expansion [1] [3] [2]. Reports also flag active pilots of mobile driver’s licences (mDLs) and government wallet‑style flows targeted for broader rollout in 2026 that will further change how financial firms accept digital credentials [11].
7. Caveats, open questions and where reporting is thin
Public reporting names the major banks and some fintechs (ConnectID participants, Lendela, One Click), documents cross‑border technical trials, and gives firm dates for phased private participation, but does not provide a comprehensive, up‑to‑the‑minute list of every private bank, mutual or fintech that has operationally switched to accepting government myID or mDL credentials at this hour; nor does it list which smaller banks or challenger fintechs are still evaluating integration [7] [1] [3]. The ANAO review and ongoing pilots mean the landscape will continue to shift through 2026 [10] [11].