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US Patent US8332322B2, “Method of establishing identity validation based on an individual’s ability to access multiple secure accounts,” was filed in May 2010 and granted in December 2012. The inventor is James Varga. The original assignee was Money Dashboard Ltd; the current assignee is IDco Ltd. The patent remains active and expires in September 2030.

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What is the core invention?

The patent establishes a method for converting an individual’s demonstrated ability to access multiple secure accounts — bank accounts, investment accounts, government tax accounts, university accounts, utility accounts — into a validated digital primary identity. Rather than relying on government-issued documents, identity validation is established through aggregated evidence of account access. The approach is user-centric: the individual controls what information is disclosed and at what assurance level. A digital identity credential can then function online or in person, with the validation level reviewed continuously as account behaviour evolves.

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Why was this significant?

The patent was filed in 2010, before open banking existed as a regulatory framework and before PSD2 was drafted. It anticipated the core mechanism that became central to open banking identity infrastructure: using bank-held account data as a trust anchor for digital identity. Key concepts the patent introduced:
  • Account access as identity evidence. The ability to access a financial account is already a verified fact — banks have done KYC to open it. Aggregating multiple such facts creates a stronger identity signal than any single document.
  • Level of Assurance from multiple sources. The number of accounts, account tenure, transaction frequency, and financial throughput all contribute to a graduated Level of Assurance (LOA) score — not a binary pass/fail.
  • Prevalidation. A single validation event creates a portable identity credential usable across multiple subsequent transactions, reducing friction.
  • Continuous review. Validation status is not static — it is reassessed as account behaviour changes over time.

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What determines the Level of Assurance?

The patent defines specific factors that determine the LOA of a validated identity:
FactorWhat it measures
Number of accounts registeredMore registered accounts increases assurance
Account typesFinancial, government, and university accounts weighted differently
Time since first validationLonger history increases confidence
Transaction frequency and volumeActive accounts indicate a real, operating individual
Account holder tenureLong-standing accounts carry more weight
Account opening methodIn-person opening carries higher initial assurance than online-only

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How does this connect to James’s later work?

This patent sits at the foundation of James’s subsequent work in open banking and digital identity:
  • DirectID built the commercial implementation of bank account-based identity verification, including the first AISP licence issued under PSD2 in the UK
  • FDATA (Financial Data and Technology Association), co-founded by James, lobbied for and helped structure the open banking regulatory framework across multiple jurisdictions
  • Open Banking Excellence, also co-founded by James, became the industry body for practitioner knowledge-sharing on open banking identity
  • The identity and trust in open banking knowledge page documents the infrastructure this patent helped define
  • DirectID: context and operating lessons covers the commercial journey from this IP to a revenue-generating business

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Patent reference

FieldDetail
Patent number (granted)US8332322B2
Application numberUS20110276485A1
TitleMethod of establishing identity validation based on an individual’s ability to access multiple secure accounts
InventorJames Frank Varga
Original assigneeMoney Dashboard Ltd
Current assigneeIDco Ltd
Filing date7 May 2010
Publication date10 November 2011
Grant date11 December 2012
Expiry date16 September 2030
StatusActive — reinstated
Total claims35