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

3Bank the Unbanked

Background

4Bank the Unbanked

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

26Bank the Unbanked cv cryptovision GmbH | T: +49 (0) 209.167-24 50 | F: +49 (0) 209.167-24 61 | info(at)cryptovision.com

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