ISLAMABAD: The National Database and Registration Authority (NADRA) has now started contactless biometric verification facilities for the banking and payments industry at the request of the State Bank of Pakistan.
This reported makes Pakistan one of the first countries in the world to implement this technology on a national level.
The service was launched during a visit of SBP Governor Dr. Reza Baqir to the Nadra Headquarters on Thursday, The News reported, citing a press statement.
The banks in Pakistan can use the service through a digital app on smartphones. It can capture and verify biometrics of the potential account holders from their homes. “With the introduction of this digital technology the banking system will take paradigm shift adding remote biometric capturing technology to the digital banking system,” the statement read.
The service is initially extended to five banks nominated by the SBP for a pilot run. Other banks and fully SBP licensed EMIs, after completion of necessary formalities will also be included in the pilot run. Once the pilot is completed, this service shall be extended to all banks/EMIs.
New service extends ‘great benefit’ to the financial sector: SBP governor
This new mobile-based verification service for banks and Electronic Money Institutions is in line with SBP’s financial inclusion initiative while creating opportunities for rapid onboarding using remote identification and e-KYC features, Dr. Baqir was quoted as saying.
He said that the early adoption of this new technology has endless potential to reach the under-serviced population and that it extends “great benefit” to the financial sector as it will reduce operational costs.
The SBP governor said it will help release the pressure on banks that have been negatively impacted during the coronavirus pandemic.