BIOMETRICS: MAKING PAYMENTS SAFER · 2017-10-06 · Biometrics, way to go Access to Financial Services Transparency Civic Engagement Access to financial services is integral to sustainable

©2015 MasterCard.Proprietary and Confidential

Presented by Paul Tswanya, Vice President, Government Services and Solutions, Sub-Saharan Africa, MasterCard

July 21, 2015

AMPI Regulatory Capacity

Building Workshop

BIOMETRICS:

MAKING PAYMENTS SAFER

THE ROLE OF BIOMETRIC TECHNOLOGY IN

FINANCIAL INCLUSION


June 26, 2015

Page 2

The future is here now


June 26, 2015

Page 3

Three Ways to Keep Mobile Payments Secure

The first is verifying the device:

• Tokenization: where a unique digital

credential is bound to a particular

device and their card.

• Secure one-time code

The second is verifying the consumer

• Passwords will become a thing of the past

• Future is voice and facial recognition

• Consumers will have the choice

The third area is not just about the security

of the transaction but of the data itself, where

we maintain the privacy of the consumer, and

meeting regulatory needs.


June 26, 2015

Page 4

What is Biometrics?

Quicker

Safer

Smarter

More convenient…


June 26, 2015

Page 5

Biometrics, way to go

Access to Financial Services

Transparency

Civic Engagement

Access to financial services is integral to sustainable

economic growth. Citizens with ubiquitous access to

basic services grow

Transparency gives citizens greater means to both

understand and take advantage of government services

and hold governments accountable for their provision

The convenience, security and parity of electronic

payments elevates the dignity of the most needy

segments of society


June 26, 2015

Page 6

Smart Business

Meet basic human needs and increase the quality of people’s lives

Fraud and mismanagement = reduced

Make manual processes more

efficient

Provide faster and cheaper government

transactions and reduce infrastructure costs

Provide more information on how

citizens are receiving and spending their

payments

Grow financial inclusion

and provide economic

growth


June 26, 2015

Page 7

Opportunities for Biometrics

• People without access to financial services:

– Estimated 2bn globally1

– 2/3rds adults in developing countries2

– Up to 76% in sub-Saharan Africa2

• Governments committed to increase financial inclusion:

– 35 emerging & developing countries’ central banks committed in 20123

• Governments are largest generators of payments4 (benefits; payroll;

subsidies; tax refunds)

• Electronic payments are a proven way to shrink the grey economy and

reduce fraud and corruption

Lack of official identity promotes a cycle of poverty and societal exclusion for many

individuals in the developing world. Robust national identification systems are

necessary for social, political, and economic development, and they can strengthen aid

delivery.


June 26, 2015

Page 8

Biometrics & Payments

• Without access to financial services citizens are denied economic

opportunities and are economically vulnerable

• Inbound remittances from the diaspora to dependents are significant in

reducing poverty and driving economic growth

• Biometrics enable eID with Payment Functionality:

– Enables the unbanked to form relationships with financial service

providers

Such relationships can develop over time and give access to additional financial

products

– Integrates Inbound Remittances using both card and mobile phone

technologies.

– More economic opportunity helps lift the poorest citizens above subsistence

level, giving them some free time in which to engage in community matters


June 26, 2015

Page 9

Success factors

Enrollment Success

Enrollment Process

Benefit, Relevance & Awareness

Tracking Ability

Political support

Density of Adult

Literate Population

Communication

infrastructure e.g.

Radio, Television,

Internet, Mobile

enrollment

Infrastructure e.g.

Gvt Physical

infrastructure

Cash-In/Cash-out

Options

Benefits relevance for

end user e.g.

Students, Farmers,

Pensioners, Poor

sections

Awareness

Campaigns to

highlight benefits

Key influencers &

advocates to raise

awareness

Adequate staff

FAQs well addressed

Simplicity of

documentation,

authentication etc.

Mobile enrollment

centers apart from

Brick and Mortar to

increase coverage

Established

relationships with

key partner agencies

to increase activation

& usage

Track enrollment and

usage rates at a

National, state,

District and

enrollment center

level

Track time gap

between enrollment

and issuance

Identify and resolving

bottlenecks on an

ongoing basis

1 2 3 4


June 26, 2015

Page 10

Nigeria: NeID Card


June 26, 2015

Page 11

Thank you


The Role of Biometrics Technology in Financial Inclusion

Wednesday, July 22, 2015

Presenter : Dosumu, O. A (Mr.)

CBN, Nigeria

AMPI Regulatory Capacity

Building Workshop


June 26, 2015

• Introduction

• Objectives of BVN Project

• Benefits of BVN

• What you need to know about the BVN

• Efforts to Date

Page 13

Outline


Wednesday, July 22,

2015

• With increasing incidents of compromise on conventional

security system (Password, PIN, etc.), there is high demand

for greater security for access to sensitive or personal

information in the Banking system.

• In recent times the biometric technologies have been used

to analyze human characteristics as an enhanced form of

authentication for real-time security processes.

• The Central Bank of Nigeria through Banker’s Committee

and in collaboration with all Deposit Money Banks (DMBs) in

Nigeria on February 14, 2014, launched a centralized

Identification System for the Banking Industry tagged Bank

Verification Number (BVN).

Page 14

Introduction


Wednesday, July 22,

2015

The purpose of the project is to use biometric information as a means of

first identifying and verifying all individuals that have account(s) in any

Nigerian Bank and consequently, as a means of authenticating

customers identity at point of transactions.

To provide uniform industrially accepted unique identity for Banks’

customers

To authenticate transaction without the use of cards using only

biometric features and PIN

Identification of blacklisted customers

Page 15

Objectives of BVN Project


June 26, 2015

• BVN gives a unique identity that can be verified across the Nigerian

Banking Industry (not peculiar to one bank)

• Customers’ accounts are protected from unauthorized access

• It will address the identity theft, thus reduce exposure to fraud

• The BVN will enhance the Banking Industry chances of being able to fish

out the blacklisted customers

• Reduce queue in the banking halls

• Standardized efficiency of banking operations

• The customers unique BVN is accepted as a means of identification

across all the Nigeria banks.

• Make ordinary people who cannot read nor write make financial

transactions

Page 16

Benefits of BVN


June 26, 2015

• Customers of banks shall be required to enroll within a fixed period after

which they shall no longer be able to operate their Bank accounts

• Capturing of all ten (10) fingers and facial image will be adopted

• Individuals shall be required to submit an acceptable means of identification

as prescribed for enrolment.

• A unique ID number (BVN) shall be issued to every Bank customer at

enrolment and linked to every account that the customer has in ALL the

Nigerian Banks

• For authentication purposes, individuals performing banking transactions

(e.g. applying for loans) shall be required to identify themselves using their

biometric features which will be matched against information in the central

database.

• Physical presence will be required for Update of customer information at their

Bank Branches

Page 17

What you need to know about the BVN


June 26, 2015

Page 18

Efforts to Date

All Deposit Money Banks (DMBs) have been capturing their customers

Over 16.3m DMBs customers have been registered

All DMBs have integrated their operations with the BVN

Implementing Strategies to capture data of Nigerians in Diaspora

Extending the BVN activities to Other Financial Institutions

Collaborating with other Stakeholders to Integrate BVN into Capital

Market Operations

Working towards data exchange / harmonisation with related agencies


June 26, 2015

Page 19

CONCLUSION

The BVN project is very key to the development of Payments System in

Nigeria.

We always seek for support and cooperation of the Stakeholders to

ensure success of the project

Thank you

BIOMETRICS: MAKING PAYMENTS SAFER · 2017-10-06 · Biometrics, way to go Access to Financial Services Transparency Civic Engagement Access to financial services is integral to sustainable

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