This past week the House of Representatives passed a bill, HR 1457, that will enable financial institutions to accept personal identification, such as scan of a drivers license, to open up on bank account on a mobile device or computer. Per the legislative description, “the financial institution may use the information for the purpose of verifying the authenticity of the driver’s license or identification card, verifying the identity of the individual, or complying with legal requirements.” The bill passed with broad bipartisan support and has now been moved over to the Senate for further discussion.
The fact that legislation is required to authorize some banks to accept a digital process for opening an account makes one wonder but it is also indicative of the fact that bank branches are quickly becoming extinct. Soon enough, bank branches will experience the same fate of the Blockbuster entertainment outlets that once littered strip malls across the US.
The legislation also highlights the disparate regulations that exist in the 50 different states – a fact that is an impediment to more rapid innovation.
While allowing for ID scans to be accepted should make it simpler for some individuals in opening accounts it is probably just a temporary measure until Blockchain based ID verification takes over – globally.