mUVN Sierra Leone

About 71.8% of people in Sierra Leone (SL), including people in rural areas, have phone subscriptions and can access mobile money (m-money) services offered by various mobile network operators (MNOs). Currently, money transfers are not possible across different MNO platforms, because identification and authentication are practicable within the same network. The mUVN-SL initiative solves this problem by establishing a harmonized platform for identifying and authenticating m-money users with their mUVN. 

By regulation, m-money users will, through biometric capture, obtain a mUVN from their preferred MNO and link their mUVN to their m-money accounts with other MNOs. Each subscriber will have one network-neutral mUVN.The platform will also process m-money payments across different networks using the mUVN. This solution enables the use of identification to easily provide secure payments to people in low connectivity areas through simple unstructured supplementary service data (USSD) and near sound data transfer (NSDT) interfaces.

Millions of SL residents lack a unique identifier. Only about 5% of the population have the National ID card. The six current ID systems in place are operated by different government agencies and, thus, are operationally disjointed. This creates barriers to access which make them inadequate as digital authentication mechanisms for MFS in SL. The most reliable database -- the National Social Security and Insurance Trust (NASSIT) -- applies primarily to individuals in the formal sector. Some of the inefficiencies promulgated by the current system are apparent in the challenges to delivering financial services, tax collections, and operating social welfare programs.  Individuals in the informal working-class sector are the most impacted by this – lacking the resources to conduct their business in a safe and efficient way. Without a harmonized and secure identification and authentication system, it is impracticable to complete m-money transactions across different networks.

In  emergency situations, such as COVID-19 pandemic, the government lacks the means of appropriately identifying and distributing palliatives to citizens. Without population-level data and a secure digitized ID in place, global organizations – such as the World Bank— also face challenges in devising the most sustainable means of supporting emerging economies like SL.

The Project is targeted at the vulnerable, marginalized, unbanked groups living on below $1.25 a day. These groups have limited access to finance and social amenities, and the inability to uniquely identify them inhibits their access to available social interventions.

We conducted informational interviews with SL locals to better understand the barriers to their access to mobile financial services. We also consulted with the micro-finance bankers to understand their apathy towards giving microloans to SL locals. The information we gleaned from these interactions, coupled with extensive desk research informed our approach to mapping out the solution of a unique digital ID system -- mUVN. 

Currently, end-to-end m-money transactions in SL must be executed within the same network. Hence, if the sender uses a different network from the recipient, the parties need a trusted proxy who uses the sender’s network to complete the transaction. With m-UVN and its MNO-neutral identification platform, the barrier of compulsory uniformity is overcome. The mUVN platform provides digital identification, authentication, and a clearing system -- accessible through USSD and NSDT interfaces. Hence, even without a smartphone, authentication is possible in rural areas. mUVN also provides an opportunity to facilitate other beneficial systems through harmonized digital authentication.

Our solution directly relates to increasing accessibility to services and benefits through use of a  digital ID, mUVN. By leveraging existing m-money systems, the mUVN infrastructure can reach those in remote areas. To protect the integrity of the mUVN system, the process of obtaining a mUVN will involve biometric capture and a secure USSD/NSDT authentication protocol. The registration and authentication process ensures that 71.8% of the population with phone subscriptions -including those with disabilities - will be able to have a digital ID. Since regulation will be required, our team is equipped to assist the Government with drafting the regulation.