Page 61 - ITU-T Focus Group Digital Financial Services – Technology, innovation and competition

ITU-T Focus Group Digital Financial Services
Technology, Innovation and Competition

6 Digital identity in action

As a continuation of section 5, this section of the report details a sample of live scenarios where digital identity
systems are used in DFS.

6.1 National ID number for SIM registration (Pakistan)

Expanding on the progress that has been made by NADRA and the computerized national identity card (CNIC)
program, the Pakistan Telecoms Authority (PTA) and the Ministry of IT (MoIT) collaborated to introduce the
biometric verification system (BVS) program. The program made it mandatory for all cell phone owners to
register each new SIM and have their identity biometrically verified against the NADRA database. As part of this
process, the PTA required the mobile industry to develop and operate a SIM registration information system,
which links a customer’s CNIC with a number of SIMs registered to that person. The biometric linking process
is not done for corporate accounts, but as these comprise less than 1 per cent of the market (which is almost
entirely pre-paid), and other checks are done to prevent fraud and other issues with corporate accounts, this
is not felt to be significant.

The SIM registration database is operated by a joint venture between all of the mobile operators reporting
19
to the PTA. No SIM registration data is shared between mobile operators.
SIMs can only be activated after the purchaser’s biometrics (thumb/finger impressions) have been verified
against NADRA. In addition to the verification requirement, a limit was placed on each person obtaining SIMs,
and a cap of five voice and data SIMs and two data-only SIMs per individual is enforced. Unlike the CNIC, the
gender demographic of SIM registration to CNIC skews towards the male population, as the typical scenario
includes a father as head of household registering all the SIMs used by a family, including his spouse and
children.

There was an initial period of time when re-enrolment and verification was conducted to account for all SIMs
obtained prior to the new rules being in place. During the initial re-enrolment, approximately 10-15 per cent
of SIMs were not replaced and subsequently blocked from being used. In order to facilitate the completion
of this verification, as many as 70,000 biometric terminals have been installed by mobile operators at sales
locations throughout the country. 20

6.2 Mobile transaction data for loan application (Pan-African)

Cape Town-based JUMO has partnered with MNOs to gain access to data relating to a consumer’s mobile
transactions. It analyses this data to allocate subscribers with a JUMO score dictating their creditworthiness.
Using this score, consumers are able to apply for loans from conventional lenders using the service and have
cash sent straight to their mobile money accounts .
21

6.3 Benefit disbursement via National ID number (India)
The Aadhaar payment bridge system in India enables government to distribute benefits and subsidies to
individuals using their unique Aadhaar number. The system (provided by the National Payments Corporation
of India) routes funds into Aadhaar Enabled Bank Accounts (AEBA) of the intended beneficiaries. This ensures
funds are transferred in a timely manner, directly and eliminates the need for consumers to convey bank
account details to government departments or agencies .
22

19 It is understood that the Board of the joint venture includes representatives from each of the mobile operators, in addition to the
PTA.
20 http:// www. dawn. com/ news/ 1157106
21 https:// www. jumo. world/
22 https:// www. ucobank. com/ pdf/ faq- apb. pdf

47