Identity Management Enhanced KYC Infrastructure For Micro Finance Banks

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Identity Management Enhanced KYC Infrastructure
For Micro Finance Banks
Femi Williams Managing Director Supercard
Limited www.supercardng.com 08033046408
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(No Transcript)
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Who are we ?

• Leading IT company with focus on Identity
  management and Cards Technology
• Pioneer Issuer and Manager of Multi application
  smartcard projects in Nigeria
• Started business in 2002
• Operator of the first Identity Bureau Centre in
  Nigeria
• Introduced the First Contactless Payment System
  in Nigeria (GoCard)
• Subsidiary of Chams

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Products Services

• Smart ID
• Smart ID
• Consortium For Administration of Salaries and
  Pensions (CASP)
• Supercard Identity Bureau
• Web Portal/eLearning
• PetroKard
• GoCard (Transport Fare Payment Card)
• E-Health

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Our Identity Management Projects

• eVisa for Belgium Embassy
• Staff Audit and Verification (Ghost Workers
  Elimination)
• Student Multi Application Card Project
• Account Holder Authentication (Savings Account)
• National ID
• MFB Solution Offline/Online Terminal Solution
  for Collection and Payment

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Challenges of MFB Industries

• No unique universal identifier for customers
• Knowing Him Again and Again
• Cross Referencing (Net Worth)
• Several Cards, Several Numbers, Several Schemes
• National ID, Pension Commission, Drivers License,
  NHIS, INEC, NPC, Debit Cards etc.
• Reliability of Existing Identifiers
• No cumulative record/database on citizens
• Poor or Weak Collaterals
• Transaction Repudiation

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You are Not Alone

• 60 of fraud worldwide (moreso Nigeria) are
  Identity related
• Government
• WAEC, JAMB
• NYSC
• States
• Universal Bank
• Account mergers
• KYC
• Even Judiciary
• Evan Vs Evans
• Ibori Vs Onanefe Ibori

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What Makes an Identity?
Identifiers
Names, Numbers, Cards, etc.
Secondary ID Document
Utility bill, bank statements, etc
Primary ID Document
Birth Certificate, etc
ID Characteristic
Biometrics, Finger prints, etc
A being, a place or a thing
Entity
An Identity is a set of identifiers associated
with an Entity.
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Identity Card Versus Identity Management Scheme
Identity Management
Identity Card

• A physical token meant to be a tier-one or first
  level identity proof to be used by citizens
• Secondary to Identity Management
• The size, type, technology, etc, depends on
  functional objectives and other factors

• A comprehensive effort designed to define the
  processes, systems, acts, technologies, etc, that
  will facilitate unique identification and
  authentication
• Involves the development of rules and
  technologies that will govern information storage
  and exchange between stakeholders
• A must-do for every Industry in the digital
  economy
• End result would be tokens (Unique Numbering
  System, Cards, Key Forbes etc.)

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Definition

• Identification, Verification and Authentication
  systems are unique means of
• Establishing/Confirming
• Unique Identity
• Of someone, based on
• What he knows, What he holds, his/her
  physiological and/or behaviour characteristics,
• to grant him/her rights or access to facilities
  or services.

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Identification Methodologies

• Knowledge Based What You Know
• Password, PIN
• Possession Based What You Have
• Key, Cards, Dongle
• Biometric Based Who You Are
• Fingerprints, DNA, Retina etc.

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Biometrics

• Authentication of a user,
• Like a Pin code or a password,
• With a high security level,
• With more data, difficult to steal or to copy,
• In an easier way,
• Less to remember, difficult to lose,
• Complying to users expectations.
• Respecting individual liberty rights.

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Biometrics

• Face
• Eye retina
• Voice
• Eye iris
• Hand
• Hands veins
• Ears
• Fingers
• Fingerprint
• DNA

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Biometrics Everything is Possible

• Face do not differentiate twins, accept mask
• Eye retina do not accept contact lens
• Voice not reliable, sensitive to stress,
  tiredness, ambient noise
• Eye iris do not accept contact lens
• Hand cumbersome, with time uncertainty,
  sensitive to tiredness, accept false hand
• Hands veins cumbersome, unusual
• Ear cumbersome, not reliable, not practical
• Finger cumbersome, accept false finger
• Fingerprint Can be accurately processed.
  Processing can be automated
• DNA reliable but too complicated

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SUPERCARD IDENTITY MANAGEMENT BUREAU (SIB)
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Objectives

• Establishment of credible and Unique Identities
  for all players
• Standardize the identification process for
  business and commercial purposes within the MFB
  sector (Enhanced KYC)
• Authenticating stakeholder identities
• Provide flexible verification solutions
• Track trust and credit related matters on an on
  going basis
• Provide basis to harmonize all identity related
  schemes across multiple Institutions in Nigeria
• Establish credible ID as a basis for transaction
  verification/authentication
• Reduce general identity related problems

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Structure
EXISTING TRUSTED DATABASE
EXISTING DATABASE
EXISTING DATABASE
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Online Enquiry
Other Third Party Applications
Offline Enrolment Gateway
Criminal Enrolment
Online Verification
Mobile Online Application
Online Enrolment
SECURITY FIREWALL
WiFi-VPN-XML-COBRA-JBDC etc.
Data WareHouse
Intermediate Database
Project Management Stations
SECURITY/FIREWALL
Disaster Recovery Site
Central AFIS Database
criminal
Hot List
Unresolved
AUTHENTICATION GLOBAL ARCHITECTURE
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Key Operational Activities

• The Data Repository network process will be
  divided into Four major modules, namely
• Enrolment This is the means of acquiring data
  from individuals who complete bio data forms and
  appear physically for fingerprinting.
• Identity Association/Authentication This is the
  process of eliminating duplicates and assignment
  of unique numbers
• Access and Utilisation All information acquired
  in the network will be available for access and
  use through a secure verification process.
• Card Issuance Optional Issuance of identity
  cards to enrollee

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Process1Enrolment
Forms and LIVE capture method are employed
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Processes 2 Uniqueness And Association of
Identities
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Access and Utilization
offline
online
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Web Verification
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Web Verification
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Benefits For MFB Industry

• Every Institution will maintain Her Unique
  Enrollment Set - Autonomy
• Identity management platform Ensure Uniqueness
  and Association of stakeholders
• Only Basic Identity Information is shared
• Non repudiation of Identities
• Flexible transaction Validation (Online and
  Offline)
• Discreet Collaboration across the industry
• Platform for industry wide cross referencing

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Ideal Recipe for Successful Identity Management
System

• Identity management program for MFB must be
  hinged on the following factors
• Industry Wide Participation
• A Well defined ID Management Concept
• Scope keep the Big Picture in view
• Technical Functional requirements
• Security requirements (Identity Theft)
• Unique Numbering System
• Relationship with other entities, etc
• Operating Model
• Role definition
• Who will operate the scheme?
• Who defines the rules?
• How will flow of information be managed?
• Data exchange Vs Data consolidation
• A detailed implementation plan.
• A clear start-to-finish game plan with definite
  milestones

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THANK YOU FOR YOUR TIME
Femi Williams Managing Director Supercard
Limited 8, Louis Solomon Close Off Ahmadu Bello
Way Victoria Island. Lagos www.supercardng.com 08
033046408