©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
©2015 MasterCard.Proprietary and Confidential
June 26, 2015
Page 2
The future is here now
©2015 MasterCard.Proprietary and Confidential
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.
©2015 MasterCard.Proprietary and Confidential
June 26, 2015
Page 4
What is Biometrics?
Quicker
Safer
Smarter
More convenient…
©2015 MasterCard.Proprietary and Confidential
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
©2015 MasterCard.Proprietary and Confidential
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
©2015 MasterCard.Proprietary and Confidential
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.
©2015 MasterCard.Proprietary and Confidential
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
©2015 MasterCard.Proprietary and Confidential
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
©2015 MasterCard.Proprietary and Confidential
June 26, 2015
Page 10
Nigeria: NeID Card
©2015 MasterCard.Proprietary and Confidential
June 26, 2015
Page 11
Thank you
©2015 MasterCard.Proprietary and Confidential
The Role of Biometrics Technology in Financial Inclusion
Wednesday, July 22, 2015
Presenter : Dosumu, O. A (Mr.)
CBN, Nigeria
AMPI Regulatory Capacity
Building Workshop
©2015 MasterCard.Proprietary and Confidential
June 26, 2015
• Introduction
• Objectives of BVN Project
• Benefits of BVN
• What you need to know about the BVN
• Efforts to Date
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Outline
©2015 MasterCard.Proprietary and Confidential
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).
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Introduction
©2015 MasterCard.Proprietary and Confidential
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
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Objectives of BVN Project
©2015 MasterCard.Proprietary and Confidential
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
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Benefits of BVN
©2015 MasterCard.Proprietary and Confidential
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
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What you need to know about the BVN
©2015 MasterCard.Proprietary and Confidential
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
©2015 MasterCard.Proprietary and Confidential
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