Commonwealth Bank Pilots Medicare Digital ID Verification via Australia’s Trust Exchange

The Commonwealth Bank of Australia (CBA) is launching a pilot program in Canberra that will allow customers to share their Medicare credentials digitally for identity verification purposes, marking one of the first tests of the federal government’s Trust Exchange (TEx) scheme. The initiative builds on CBA’s earlier digital identity efforts, including the NameCheck verification system launched in late 2023.

During the trial, participants at select CBA branches in Canberra will use the myGov app to scan a QR code and share verified information from a test Medicare card. The bank will receive government-verified details including the customer’s name and confirmation of valid Medicare enrollment, while sensitive information such as Medicare numbers will not be transmitted. This secure approach aligns with the Digital ID Act 2024, which established new privacy and security standards for digital identity verification in Australia.

The TEx initiative, unveiled in August 2024 with an $11.4 million initial investment, aims to reduce the need for sharing physical documents and personal information through a digital wallet system. Previous smaller-scale trials have included a Brisbane GP clinic, with additional use cases planned for government services and venue check-ins. The system represents a significant advancement in Australia’s broader national digital identity framework, which includes provisions for age verification and enhanced cybersecurity measures.

“Services Australia has been working with the Commonwealth Bank on a concept that would look to use the Medicare card in your myGov app digital wallet to contribute to the identity verification process,” said outgoing Services Minister Bill Shorten, who announced the pilot.

Shorten explained that the system could eliminate the need for banks to store copies of identification documents, instead receiving instant government verification of a person’s identity. The initiative remains in the proof-of-concept stage, with results from the CBA pilot intended to inform decisions about potential expansion.

The TEx program operates alongside the government’s separate national digital identity system, which recently received enabling legislation following a $1 billion, 10-year development period. Following a cabinet reshuffle by Prime Minister Anthony Albanese, Finance Minister Katy Gallagher has assumed responsibility for TEx as part of the Government Services portfolio.

The system employs token-based verification and allows users to control which specific information they share. It is designed to facilitate identity verification across multiple sectors, including government services, banking, telecommunications, real estate, and age-restricted venues. This approach reflects growing international trends toward decentralized digital identity systems that prioritize user privacy and consent while maintaining high security standards.

Sources: InnovationAus

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January 17, 2025 – by Ji-seo Kim