Digital ID systems can—but need not—include a component that allows proof of identity to be portable. An individual’s identity is portable when his or her digital ID credentials can be used to prove identity for new customer relationships at unrelated private sector or government entities, without their having to obtain and verify personally identifiable information (“PII”) and conduct customer identification and verification each time. Portability requires developing interoperable digital identification products, systems, and processes, including through the use of federated digital architecture and assertion protocols to convey identity and authentication information across a set of networked systems or through APIs that do not use federated architecture and protocols.

Portability and interoperability can potentially save relying parties (e.g., financial institutions and government entities) time and resources in identifying, verifying, and managing customer identities, including for account opening and authorizing customer account access, and may reduce the risk of identity theft stemming from the repeated exposure of PII. However, as discussed below, portability and interoperability are optional components of a digital ID system and will not be a focus of this Guidance.