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1Bank the Unbanked cv cryptovision GmbH | T: +49 (0) 209.167-24 50 | F: +49 (0) 209.167-24 61 | info(at)cryptovision.com
Citizen e-ID Nigeria: Bank the Unbanked –
Convergance of Payment and eIDMarco Smeja
Executive Vice President Sales, cryptovision
2Bank the Unbanked
● 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.
Background
5Bank the Unbanked
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
* http://www.efina.org.ng
6Bank the Unbanked
● 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
Federal Republic of Nigeria
7Bank the Unbanked
Project Background
~45% of population expected to remain in15-44 age group: possible champions of e-ID use
78
0-1481
5
45-6519
15-44
65+
90
6
22
93
2015 E 2020 E
15-44 aged population expected to comprise 43% of total population
Age
Nigeria Population break up by Age (Mn)
∑ 183 Mn ∑ 210 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
8Bank the Unbanked
Nigeria’s need for trusted Identity system
Citizenship
Birth Education
Entrepreneurship
Useful Services Health
Social Life Pension
Employment
Finance
Death
GSM number
The Gap• Focus on ID Card• Counterfeits (75%)• Full Coverage Issues• No ID Authentication & Verification
Services• Huge Unbanked Population
Age DistributionChildren (0-4): 17%Middle childhood (5-14): 27%Adolescence (15-19): 9%Young adulthood (20-24): 8%…Pensioners (60-): 7%
9Bank the Unbanked
Other Factors Fuelling the Need for e-ID
1. Telecoms SectorRapid Growth in Telecoms industry.
2. InsecurityNew threats in kidnapping, robbery and bombings!
3. Poor RoadsReducing inclination to travel long distances for services.
4. MobilityShifts in more movements towards urban settlements.
5. EconomyRecent policy shifts towards cashless economy ( KYC )
6. GovernanceHigh level cabinet position focusing on ICT + Infrastructure
10Bank the Unbanked
eID Nigeria: card overview
The National Identity Card - Your identity database and payment card in your pocket.
identity payment
travel
11Bank the Unbanked
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
12Bank the Unbanked
Card Objectives
Key Features of the Smart Card
A reloadable repaid EMV card
Biometric enabled activation & PIN selection
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
Single chip with multiple functionality (Biometric, EMV ,
Crypto-processing, PKI, Multiple Applets)
Globally interoperable smart cards
13Bank the Unbanked
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 7816-1, ISO 7816-2, ISO 7816-3, ISO 7816-10 and ISO 7816-12.
14Bank the Unbanked
NIMS eID Card Applications
Chosing NXP JCOP andcryptovision ePasslet Suite – an open solution
An eID card application framework should not depend on proprietary technology. This is only possible with Java Card
Java
15Bank the Unbanked
NIMS - System Overview
dataentollment
citizen database
managmentreporting
web verificationservices
eID cardproduction
centralprocessing
• Card printing• Quality assurance• Card distribution
• Data acquisition• Standardized front-
end software• data upload to
central server
• Data processing (AFIS + fraud detection)
• NIN assignment• Rejections• Data
personalisation
16Bank the Unbanked
NIMS eID PKI combines two worlds
• Web logon / access• Online banking• Online transactions• Digital signing of document
• ICAO application• eID read-out• Update citizen data• Post issuance
Document Authenticity andIdentity Assurance
Strong Authentication andDigital Signature
Digital Certificates
17Bank the Unbanked
eID Nigeria: Card Application Frameworf
Java Card Operating System
eID ePKI MoC Driving License Transport
Health
cryptovision cv act ePasslet Suite Core Library
Payment
VotingRO
MEE
PR
OM
Pension Insurance CustomTax SIM
Keys CertificatesPersonal data Fingerprints Additional data
ICAO
18Bank the Unbanked
NIMS eID Card Middleware
crypto interface
PC orTerminal
NIMS application
cryptovision middleware
National eIDcard
reader
card interface
Operating Systems
19Bank the Unbanked
Online Verification - You and your National eID
paymentsolution
e-voting
identityverification
socialbenefits
secure e-mail
tax
digital signature
VPN
Citizen ID Verification
20Bank the Unbanked
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
21Bank the Unbanked
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
22Bank the Unbanked
Gelsenkirchen, July 3rd 2014
For the first time in history a national eID isbeeing used to withdrawl cash money at a
German ATM.
23Bank the Unbanked cv cryptovision GmbH | T: +49 (0) 209.167-24 50 | F: +49 (0) 209.167-24 61 | info(at)cryptovision.com
Nearly one-third of the U.S. population - 106
million people - are either underbanked or
unbanked, according to the Federal Deposit
Insurance Corporation (FDIC).
24Citizen e-ID
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
25Citizen e-ID
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