Why Biometric Technology is Crucial to Nigeria’s Digital Economy

The shift to digital economy and the adoption of digital identity has drawn attention to the importance of biometric technology. This role this also plays in creating a robust data privacy and security cannot be overemphasized.

The Founder and Chief Executive Officer of iiDENTIFii, Gur Geva, has said that biometric technology is crucial to Nigeria’s digital economy.

The Africa and Middle East biometrics market is forecast to grow at an annual rate of 21%, with the global biometric technology industry set to reach US$82 billion by 2027, according to the “Biometrics – Global Market Trajectory & Analytics 2020” report published by US-based research firm Global Industry Analysts.

Biometric technology generally refer to the use of technology to identify a person based on some aspect of their biology. Fingerprint recognition is one of the first and original biometric technologies that have been grouped loosely under digital forensics

According to Geva, with proper biometrics tech, financial institutions could provide safe and efficient services to consumers in the country at scale, and improve financial inclusion.

He said, “Biometric technology is a crucial consideration in Nigeria’s ongoing digital expansion. If financial institutions, telecommunications companies, and the public sector adopt enterprise-grade biometric authentication, they can provide services to Nigerian consumers safely, efficiently, and at scale.”

He explained that biometric authentication technology was changing how individuals identified with mobile devices. With technology, banks, insurers, telecommunications companies, and government institutions could ascertain that the person on the other end of the screen was identifiable, verifiable, and human.

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Geva added, “As the only IDV company in Africa that provides enterprise-grade level services, we understand the far-reaching benefit of biometrics in protecting the assets of companies and consumers and fighting financial crime.

“We believe the requirement for digitised biometric authentication in Africa is immense. The region is a sleeping giant when it comes to accessing traditional bank accounts, digital banking, and affordable financial services.”

He noted that with the country’s high number of active mobile subscriptions, digital adoption needed to be met with intentional digital security measures.

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According to him, inclusive digital identity approach could open doors to critical government services in the country such as labour markets, government benefits, and financial services.

He stated, “The digitally excluded are missing out on access. Without access, the keys to both social and financial inclusion are unreachable.

“Those who do not have access to newer technologies are disadvantaged in healthcare, education and financial support. These areas have a significant negative impact on an individual’s overall quality of life. For this reason, we actively consider unserved and underserved communities in our solutions.

Recent figures from the Nigerian Communications Commission (NCC) state that the number of active mobile subscriptions in the country has reached about 222,571 million in December 2022 and teledensity of 116.60 per cent. This level of digital adoption needs to be met with intentional digital security measures. Added to this, Nigeria’s recent greylisting provides an opportunity to interrogate cyber security in the region and how biometric authentication can deter financial crime.

This technology also plays a powerful role in digital and financial inclusion. Historically, biometric identification has been for the privileged few – the technologically advanced with access to hi-tech, leading-edge equipment – providing access to services that are typically not for the digitally excluded. However, remote digital biometric authentication has a crucial role in bridging the digital divide.

Geva adds, “The digitally excluded are missing out on access. Without access, the keys to both social and financial inclusion are unreachable. Those who do not have access to newer technologies are disadvantaged in healthcare, education and financial support. These areas have a significant negative impact on an individual’s overall quality of life. For this reason, we actively consider unserved and underserved communities in our solutions.”

This inclusive digital identity approach can open doors to critical government services such as labour markets, government benefits and financial services, without the risk of impersonation or fraudulent funding. This extends to those with limited ability to engage in the digital world.