Direct authentication and authorization system and method for trusted network of financial institutions

A system for performing a secure transaction between an Originating Participating Financial Institution and a Receiving Participating Financial Institution on behalf of an Originator initiating the transaction, the system comprising:

• a Digital Identity Operator connecting the Originating Participating Financial Institution to the Receiving Participating Financial Institution via a trusted Digital Identity Network;
• an Originator that initiates the transaction by authenticating himself to the Originating Participating Financial Institution over a communication network;
• the Digital Identity Operator adapted to receive a request for a new digital identity from the Originating Participating Financial Institution and dynamically generate a digital identity that is non-predictable, time dependent and unique to the Originator only, and to return said digital identity to the Originating Participating Financial Institution;
• the Originating Participating Financial Institution further adapted to receive said generated digital identity and provide said digital identity to the Originator;
• whereby the Originator provides said digital identity to the Receiving Participating Financial Institution either directly, or indirectly through a Receiver;
• the Receiving Participating Financial Institution adapted to validate said digital identity by forwarding said digital identity to the Digital Identity Operator;
• the Digital Identity Operator further adapted to validate said digital identity and, if valid, to send a Digital identity Message to the Originating Participating Financial Institution and/or Receiving Participating Financial Institution;
• whereby upon receipt of the Digital Identity Message, the Originating Participating Financial Institution and the Receiving Participating Financial Institution perform the transaction.

A system for authenticating an Originator and receiving the Originator's authorization for a secure transaction in e-commerce based on digital identity, the system comprising:

• an Originator in communication with a Receiver over a public communication network and needing to perform a secure transaction with the Receiver;
• the Receiver adapted to require the Originator to authenticate himself and authorize the transaction by providing a valid digital identity before performing the transaction;
• the Originator further in communication with an Originating Participating Financial Institution;
• the Originating Participating Financial Institution adapted to request and receive a dynamically-generated non-predictable and time-dependent digital identity from a Digital Identity Operator, wherein said dynamically-generated digital identity is unique to the Originator only;
• the Originating Participating Financial Institution adapted to forward said digital identity to the Originator;
• whereby the Originator submits said digital identity to the Receiver and the Receiver forwards said digital identity to the Digital Identity Operator for verification and validation;
• and
• whereby upon successful validation by the Digital Identity Operator, the Receiver positively authenticates the Originator and receives proof of the Originator's authorization for the transaction.