The banks and service providers can ask for your digital ID, the employers can ask for your digital ID and when that becomes the standart you will have very hard time to have a life in UK without having all the permissions.
Most of EU and many other countries have something like that, at least you have a citizenship or resident number that they can check against to see what's your situation.
In UK though, everything is run over proof of address and it's quite annoying for new immigrants(legal or not) because its circular. You can't have anything that can be used as proof of address without having proof of address already. At some point you manage to break circle by first having something that doesn't require proof of address but it is serious enough to be accepted as one, i.e. I know people who were riding the tube without tapping in so that when they are caught the government will send them a letter about their fine and they can use the letter to open a bank account.
The Turkish version is both great, annoying and terrible.Great because you can do all your government stuff and some other stuff like see your full medical history, make an appointment etc or managing your service subscription(water, electricity, cable. GSM etc) from the government portal. Annoying because whatever you buy beyond groceries now they are asking for your ID number and all purchases are becoming a chore. Terrible because these systems are regularly hacked and all your private data is online for sale and some even run an API to access your govt stuff live.
It works fine to manage legal immigration, you give the immigrants the ID so the can have their subscriptions etc. Once they are no longer wanted you know where to find them and make providers cut them off. It doesn't work for illegal immigrants because since they can't register to anything they end up just asking a friend to start them a subscription or pay extra to have some employee start them a subscription that in the records look like its for the employee.