Following a request from the State Banking of Pakistan, the National Database and Registration Authority (NADRA) has launched contactless biometric checks for the banking and payments industry. It was launched during the visit of Dr. Reza Baqir, Governor State Bank of Pakistan (SBP) to NADRA Headquarters on Thursday (9th September).
Banks in Pakistan will now utilize a digital app on smartphones to capture and verify biometrics of potential account users from the comfort of their own homes. The banking system, with the advent of this technology, will undergo a paradigm shift with the addition of remote biometric capture technology to the digital banking system.
This service will also be provided by NADRA to Electronic Money Institutions (EMIs) and branchless banking services. Taking advantage of NADRA’s innovative product, banks and EMIs are likely to begin offering new digital banking services to their customers, in which bank customers will be able to open bank accounts and wallets, as well as to conduct biometric-based financial transactions, from the comfort of their homes.
The service will be initially offered to five banks selected by SBP as experimental sites. Other banks and fully SBP licensed EMIs will be included in the pilot after the appropriate processes are completed. This service will be provided to all Banks/EMIs after the pilot is completed.
Dr. Reza Baqir, Governor State Bank said, “This new mobile-based verification service for banks and Electronic Money Institutions is in line with SBP’s financial inclusion initiative while creating opportunity for rapid onboarding using remote identification and e-KYC features”.
In addition, he also said, “Early adoption of this new technology has endless potential to reach towards under-serviced population while it extends a great benefit to the financial sector as it will reduce the operational costs, aiding in releasing pressure on Banks who have been negatively impacted during this Pandemic.”
Tariq Malik Chairman NADRA said, “We are addressing the need of the hour during this ongoing pandemic. This new technology makes contactless fingerprint acquisition and matching possible using a smart mobile phone, providing an alternative to conventional methods of conducting digital financial transactions that may require specialized equipment or visits to Bank Branches/Franchises.”
NADRA is proud to preserve its reputation for bringing country specialized technical innovations. This is another milestone in our quest to build a viable Pakistani National ID Eco System.
According to Chairman NADRA, “This will not only revolutionize how Banking and payments Services are offered in the country but will also complement the financial inclusion drive.”
