The digitalization of our lives has introduced new challenges and opportunities for the identification of individuals, which is essential to a civilized society. Yet, according to the World Bank, more than 1.1 billion in the world are unable to prove their identity and lack access to basic services like healthcare and finance. Financially excluded people are trapped in inescapable poverty and prevented from experiencing significant economic growth. Suitable technological tools used for electronic identity proofing, authentication, and authorization should focus on seven essential requirements:
Interoperability: accessible to all kinds of public and private services
Portability: the ability to take one’s digital identifier credentials anywhere
Pseudonymity: ability to interact without disclosing one’s real identity
Recovery: able to retrieve keys and credentials easily and safely
Scalability: feasible for adoption and replication
Security: protects data and information, including keys and credentials
Usability: human-meaningful and good user experience.
Identification + financial services = poverty reduction.
The World Bank established a connection between reducing poverty and inequality with providing access to financial services. It is a huge problem that micro, small, and medium-sized businesses do not have access to financial services given that they account for 99.6% of this region’s industries, according to the ADBI surveys. Conforming to the 2017 Global Findex data, 65% of women worldwide have a financial account, compared to 72% of men. Hereby, another relevant indicator is that over 70% of women-owned small and medium enterprises (SMEs) have inadequate or no access to financial services.
In a survey performed by the Asian Development Bank Institute (ADBI), half of the Philippines’ population does not make enough money to be included in the financial system. SMEs, in general, have issues borrowing money in some parts of Asia, and there is an information asymmetry gap, which results in higher due diligence costs, perception of risks, and higher interest rates to SMEs.
ARYZE´s inclusive approach.
ARYZE has a Multi-level KYC approach that is inclusive and adaptive. When users reach their transaction limits, they are asked to increase their KYC level by uploading relevant identification documents. Users can also level up by association with a known corporate MAMA account, such as being on a company payroll or being a contractor or freelancer. This tiered approach, combined with the association with corporate users, will enable ARYZE to provide basic financial services to the largest number of people and organizations possible, with opportunities to expand their access by meeting additional KYC requirements when they can.