dc.description.abstract | In this project we have tried to assess the impact of national ID schemes in driving financial
inclusion. The project explored in detail the use of national IDs as a means of fulfilling
identification requirements in order to access financial products and services. We have studied
the national ID schemes across countries like Kenya, Estonia and India in detail. We have also
looked at other countries like Thailand and South Africa where the functional use of an ID is
primary use case but the ID eventually also doubles up as a national identification document.
Some of the key findings from our research are 1. National IDs have a positive impact on
financial inclusion as they simplify KYC procedures and improve access to financial products,
mainly savings and credit 2. In countries where national ID schemes have been successful in
improving financial inclusion, regulations from the central banks have played a key role for KYC.
3. Mobile phones will be the key enablers for financial inclusion in developing countries like
India where mobile penetration, even in rural areas is high. 4. Functional ID schemes started
mostly for social grants and benefits have seen tremendous success in various countries.
We also conclude through the research that for a successful national ID scheme that improves
financial inclusion, it is necessary that a collaborative approach between government, central
banks and third parties is undertaken. | en_US |