Page 87 - The Digital Financial Services (DFS) Ecosystem

ITU-T Focus Group Digital Financial Services
Ecosystem

Cost challenges extend beyond operational delays and we find evidence that limited financial resources affect
the relative ability of a country to negotiate the details of national identification program design, as seen in
three countries (Mozambique, Niger, and Uganda). While technology costs are falling, developing identification
systems with biometric technology is costly (Gelb & Clark, 2013). Mozambique entered a controversial and
reportedly disadvantageous contract with the private firm Semlex, speculated to have been driven by financial
constraints forcing the country to outsource card development (AIM News, 2010). Niger also reported
abandoned biometric features in their voter registration cards due to their cost, despite a consensus that it
would be a more reliable option to ensure fair elections (University of Florida, n.d.).

4.7 Harmonization of ID Programs

In all of the countries we review, the identified program(s) are the dominant identification system present in the
country. In many cases, the programs are implemented to either establish the first official system of identification
in the country or to create one central identity framework to replace multiple forms of documentation (e.g.,
birth certificates, passports, etc.). However, we find evidence in three countries (Afghanistan, India, and
Nigeria) of challenges involving the interoperability of the reviewed identification program(s) with other
national systems.

In Nigeria and India, challenges of interoperability relate to a lack of clear, legal frameworks and delegation
of responsibilities by governing bodies (Udunze, 2015; Zelazny, 2012). In Nigeria, the legal right of the Bank
Verification Number (BVN) program to register citizens using biometric information was contested by the
National Identity Management Commission (NIMC) who claimed the dominant role in identification matters,
though an agreement was reached to harmonize the databases (Udunze, 2015). In India, the UID mandate to
issue identification numbers is separate from the mandate to issue national identity cards, causing confusion
and repeated registration efforts as both groups compete to enroll more citizens in the respective databases
(Zelazny, 2012). In the case of Afghanistan, we find evidence that conceptual challenges exist concerning
the link between electronic signatures and electronic authentication, and more broadly, how these different
elements can be integrated into an electronic multipurpose infrastructure (Danish, 2014).

5 Functions Linked To Identity Programs

Registration of country populations and issuing IDs can benefit both the private and public sectors’ ability to
deliver services, potentially increasing efficiency and accountability (Gelb & Clark, 2013). As such, national
ID programs have been purposed to serve a wide range of functions, including financial services, health, and
agriculture. In addition, ID programs can be valuable in elections, facilitating government social transfers,
surveillance and security, aiding civil service administration, and supporting other functions such as travel
across jurisdictions (Figure 7).

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