Citizen e-id Nigeria: Bank the Unbanked Convergance of Payment and eid

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Moses Owens
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1 Citizen e-id Nigeria: Convergance of Payment and eid Marco Smeja Executive Vice President Sales, cryptovision cv cryptovision GmbH T: +49 (0) F: +49 (0) info(at)cryptovision.com 1

2 Background Why are people unbanked? The Global Findex shows 3/4 of the world s poor do not have a bank account, not only because of poverty, but also due to costs, travel distance and paper work involved. Who are the unbanked? The Global Findex shows gaps in financial inclusion across demographics, with women, the poor, youth, and rural residents at the greatest disadvantage. Why is this issue important? Because a credit score - and access to financial services - is usually necessary to buy a home, build a business, or send your children to college. 2

3 Background 3

4 Background 4

5 Nigerian e-id Card as Financial Inclusion Enabler According to a 2012 EFInA* study, only 28.6 Million Nigerians from a total adult population of 87.9 Million are banked. Other formal institutions serve an additional 9.2 Million Nigerians. Consequently, 50.1 Million Nigerians are not being served by the formal financial sector and 34.9 Million Nigeria are entirely unbanked. All Nigerian National Identity Cards will be issued with Prepaid functionality (the initial 13 Million will issued with MasterCard Prepaid functionality) A Prepaid card = Prepaid Account = Bank Account * 5

6 Federal Republic of Nigeria Nigeria is located in West Africa and shares land borders with the Republic of Benin, Chad, Cameroon and Niger Has 168 million inhabitants, comprises of 36 states Federal Capital Territory is Abuja There are over 500 ethnic groups in Nigeria of which the three largest ethnic groups are the Hausa/Fulani, Igbo and Yoruba 6

7 Project Background ~45% of population expected to remain in age group: possible champions of e-id use Nigeria Population break up by Age (Mn) 2015 E Age 2020 E aged population expected to comprise 43% of total population Mn Mn Nigeria s population is ~174 Million (as of 2013) Population growth rate is expected to be ~3% YoY Source: Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat 7

8 Nigeria s need for trusted Identity system Birth Education Entrepreneurship Employment GSM number The Gap Focus on ID Card Counterfeits (75%) Full Coverage Issues No ID Authentication & Verification Services Huge Unbanked Population Finance Citizenship Age Distribution Children (0-4): 17% Middle childhood (5-14): 27% Adolescence (15-19): 9% Young adulthood (20-24): 8% Pensioners (60-): 7% Useful Services Health Social Life Pension Death 8

Other Factors Fuelling the Need for e-id 1. Telecoms Sector Rapid Growth in Telecoms industry. 4. Mobility Shifts in more movements towards urban settlements. 2.

9 Other Factors Fuelling the Need for e-id 1. Telecoms Sector Rapid Growth in Telecoms industry. 4. Mobility Shifts in more movements towards urban settlements. 2. Insecurity New threats in kidnapping, robbery and bombings! 5. Economy Recent policy shifts towards cashless economy ( KYC ) 3. Poor Roads Reducing inclination to travel long distances for services. 6. Governance High level cabinet position focusing on ICT + Infrastructure 9

10 eid Nigeria: card overview identity payment travel The National Identity Card - Your identity database and payment card in your pocket. 10

11 eid Nigeria: card overview Sample Personalised Card Unique EMV PAN Number Unique Document Number Standard eid Details ICAO Features Photo Birth date Issue Date ICAO MRZ Lines 11

12 Card Objectives Key Features of the Smart Card A reloadable repaid EMV card Globally interoperable smart cards Single chip with multiple functionality (Biometric, EMV, Crypto-processing, PKI, Multiple Applets) Proposed Load/ Reload channel(s) POS, Banks, Merchant Locations, Web Portal, Mobile Wallet Supported Transactions (Cash Withdrawals, POS Purchase, Bill Payment, P2P Transfer, POS Cash Advance, ecommerce, mcommerce Biometric enabled activation & PIN selection 12

13 Unique Chip Design, a Deliberate Security Effort 13 applets, including: e-id e-pki M-o-C (Match on Card) EMV (Payment) ICAO (Travel) ISO Norms compliance : ISO , ISO , ISO , ISO and ISO

14 NIMS eid Card Applications Chosing NXP JCOP and cryptovision epasslet Suite an open solution Java An eid card application framework should not depend on proprietary technology. This is only possible with Java Card 14

15 NIMS - System Overview Data acquisition Standardized frontend software data upload to central server data entollment central processing managment reporting citizen database Card printing Quality assurance Card distribution eid card production Data processing (AFIS + fraud detection) NIN assignment Rejections Data personalisation web verification services 15

16 NIMS eid PKI combines two worlds Digital Certificates Document Authenticity and Identity Assurance ICAO application eid read-out Update citizen data Post issuance Strong Authentication and Digital Signature Web logon / access Online banking Online transactions Digital signing of document 16

eid Nigeria: Card Application Frameworf ROM EEPROM Personal data Fingerprints Keys Certificates Additional data eid epki MoC Payment Driving

17 eid Nigeria: Card Application Frameworf ROM EEPROM Personal data Fingerprints Keys Certificates Additional data eid epki MoC Payment Driving License ICAO Transport Health Voting Pension Insurance Tax SIM Custom cryptovision cv act epasslet Suite Core Library Java Card Operating System 17

18 NIMS eid Card Middleware PC or Terminal NIMS application crypto interface cryptovision middleware card interface reader National eid card Operating Systems 18

19 Online Verification - You and your National eid Citizen ID Verification payment solution tax e-voting VPN identity verification social benefits secure e- mail digital signature 19

20 National ID and Cashless Economy Government Public Sector Salary Pension Social Benefits Agric Subsidies Commercial Corporate Salary Dividend payments Consumer Cash withdrawal Micro-Loans Cash-in, Cash-out International Remittance E-Commerce Merchant payment M-Commerce 20

21 Comparison with the German eid Nigerian eid German npa Chip Contact Contactless Cardholders 100 Million 50 Million eid Function Yes Yes Signature Function Yes Yes Biometrics Yes Yes Payment Function Yes No Banking Function Yes No Travel-Document Yes Yes Restricted Identification No Yes Age Verification No Yes PACE based Authentication for eid Yes Yes 21

22 Gelsenkirchen, July 3rd 2014 For the first time in history a national eid is beeing used to withdrawl cash money at a German ATM. 22

23 Nearly one-third of the U.S. population million people - are either underbanked or unbanked, according to the Federal Deposit Insurance Corporation (FDIC). cv cryptovision GmbH T: +49 (0) F: +49 (0) info(at)cryptovision.com 23

24 Smart Card Adoption in USA US Department of Defense (Common Access Card) Launched in 2000 Over 12 million cards issued over past 15 years Over 3.4 million cards in use Mandated for network access US Federal Government (Personal Identity Verification Card) Launched in 2004 Over 5 million cards in use Network and physical access Citizen e-id 24

25 EMV 2015 Mandate for USA 2.2 Billion credit cards in USA Fraud drove VISA, MC and AMEX to create 2015 Mandate Terminals need updating Many in US Medical industry have perception that EMV adoption = smart cards will be standard medical ID identifiers Companies such as LifeMedID are delivering smart card solutions leveraging the newly deployed EMV readers Citizen e-id 25

26 END cv cryptovision GmbH T: +49 (0) F: +49 (0) info(at)cryptovision.com 26

Government Services & Solutions Case Study Nigeria National ID Card (NID)

MasterCard Government Services & Solutions Case Study Nigeria National ID Card (NID) Summary At the May 2013 World Economic Forum on Africa, the Nigerian National Identity Management Commission (NIMC)