Digital Identity Verification, Emerging Markets, Fraud Prevention

Samuel

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As we step into June, lets look into digital identity verification in emerging markets and fraud prevention. We take a moment to reflect on the first half of 2024, our operations, and our engagements across multiple countries. It has been a dynamic period marked by significant milestones and transformative initiatives, each reinforcing our commitment to advancing digital identity verification across the continent and beyond.

A Major Milestone in Verifications

Verifications in Prembly-Digital Identity Verification Emerging Markets Fraud Prevention — Verifications in Prembly

One of our most notable achievements this year is reaching six figures in verifications in a new market. This milestone is a testament to our relentless pursuit of excellence and our unwavering dedication to enhancing digital identity systems. Achieving this hasn’t been easy, but we are filled with gratitude for the journey and the progress we’ve made so far.

To appreciate our current successes, it’s essential to look back at how identity verification has evolved. Years ago, verifying one’s identity within financial institutions was a tedious process. Opening a bank account required spending hours in a branch and dealing with extensive paperwork. At that time, fintechs and neobanks were rare, and the adoption of National Identification Numbers across different African countries was in its infancy.

What has been there?

In the not-so-distant past, the landscape of digital identity verification and compliance in emerging markets lacked a robust infrastructure. While some countries had systems for data access, availability didn’t necessarily mean accessibility. Regulatory bodies across Africa had different criteria for accessibility, and there was no standardized online database or service for retrieving data from ID sources. Financial institutions had to verify information manually, predominantly relying on paper-based methods. This manual process not only caused friction during customer onboarding but also limited business growth.

In some African countries, unique identifiers existed for verification and KYC purposes, but this was not consistent across the continent. While some governments began opening their ID systems to third-party entities, others remained restrictive. Even where progress was made, significant challenges persisted.

ID Numbers

According to UN statistics, approximately one billion people lack fundamental proof of identity, with half residing in Sub-Saharan Africa. Without basic identification, accessing essential public services becomes nearly impossible. This also hinders individuals from leveraging opportunities in the digital economy, presenting a colossal yet largely unaddressed problem.

Our Journey with Government & Government Entities…

When we launched in the Nigerian market, where we have been recognized with multiple awards—including Digital Identity Verification Company of the Year, Top Identity Verification Company in Nigeria, and Innovative Digital Identity Verification Company—we took on the challenge of solving issues related to digital identity systems, data infrastructure, and compliance in emerging markets. This mission has now taken us to global markets, with our most recent entry into Brazil (under link to Brazil news).

Collaboration with African Governments

Addressing the challenge of unified identity systems has led us to collaborate with governments in Namibia, Nigeria, Kenya, Rwanda, and South Africa, amongst others.

We partnered with The Namibia Financial Institutions Supervisory Authority (NAMFISA) to launch their official regulatory sandbox in Namibia. This initiative aimed to create an inclusive financial sector in the country, aligning with our mandate to work with governments to build infrastructures that enable a unified identity system across Africa and digital transformation, ensuring every individual has a recognizable identity.

One major issue identified with NAMFISA was the stifling of innovation due to traditional compliance systems. Together, we committed to a comprehensive digital reform to modernize Namibia’s regulatory framework for non-banking financial institutions.

Progress and Future Outlook

Our bullish outlook on creating a unified identity system across Africa is on track, even as we continue to take on global markets side by side, taking a day at a time and tackling one market at a time.

Having said that, across markets and their corresponding trends, patterns, and customer pain points, one clear necessity is helping combat fraud through secure user identities, ultimately keeping platforms and customers safe online. In alignment with our mission to continue building inclusive and innovative compliance and data infrastructure, we’ve churned out fraud detection, prevention, and AML solutions for businesses via Identityradar.

All in all, our infrastructure has been designed to empower governments, organizations, entities, institutions, and digital businesses to access global markets. Furthermore, global markets can also access datapoints with ease and transact with trust across emerging markets.

Addressing Fraud and Looking Ahead

The need for secure digital identity systems is underscored by alarming statistics, such as the 277% increase in fraud in Nigeria in Q2 2023. As we continue to develop and deploy advanced verification solutions, our goal is to significantly mitigate these risks and foster a safer digital ecosystem.