Introducing a digital ID scheme could be a positive for the UK’s financial services sector, according to senior figures at the Financial Conduct Authority.

The idea of a digital ID has become a controversial political topic since the Labour government announced last month that a new scheme would be rolled out in a bid to crack down on illegal working. Conservative Party leader Kemi Badenoch branded the move a “desperate gimmick” and other political parties such as the Liberal Democrats have come out against the policy.