Africa: Why Digital Identity Verification is on the rise
In Africa, there are a plethora of banking prospects. The area is a “sleeping giant” when it comes to having access to conventional bank accounts, online banking, and reasonably priced financial services. Identity Verification APIs are now providing resolutions to the finance sector with their old customer onboarding woes in Africa.
The World Bank estimates that 57% of Africans still don’t have a bank account of any type, including a mobile money account. According to a recent analysis by BPC and Fincog, this amounts to around 360 million adults in the area and 17% of the world’s unbanked population lacking access to formal financial services.
Many Africans lack official identification cards, making it difficult for people to access banking, education, and healthcare services. This can make it difficult for governments and companies to confirm the identities of their residents and clients.
Only 15 African countries have finished their national cybersecurity strategies for threat monitoring and response, according to a study from the Africa Centre for Strategic Studies, according to South Africa’s Financial Sector Conduct Authority (FSCA), which notes that most of Africa’s banking regulations for digital services are slow to evolve.
Aggressive digital expansion in the Finance Sector
The competitive tech landscape that has contributed to a leapfrogging effect by avoiding conventional channels like landlines and going straight to mobile phones has contributed to the growth of Africa’s technology industry. Over time, this development has made the area an essential market for corporate growth and has sped up the adoption of eBanking and mobile money payment systems.
The high rates of fraud and cyber risks, as well as the dearth of cutting-edge identity verification methods to effectively combat fraudsters, are important obstacles restricting potential in the region.
How Identity Verification helps delivering Financial Services across the continent
Identity verification solutions can help with this problem, bringing huge companies to the area who have been put off by the region’s high levels of fraud and inability to adequately authenticate their clients.
Due to the…
