FinTechs belonging to this category provide identification services, which are required for most banking services.
Attitude of the country towards identification services
Identification services in Tanzania are only done by the government through the National Identification Authority (“NIDA”), who is the regulator. Currently, the country is undergoing a change and every citizen and resident is required to obtain the National Identity Card. Without this card, one cannot own a sim card or open or operate a bank account. A person receives a 20-digit number called National Identification Number. This is linked to a single set of biometric attributes of that person that cannot be altered in any way. An automated fingerprint identification system is used to avoid duplicating. The processed information is stored in a data centre that connects to all district registration offices, via the national ICT broadband backbone.
The identification and registration process is still ongoing, with about 74% of the eligible population registered.
The reservation is an important aspect that is overlooked; there is a lack of a clear and sufficient rights protection and redress system. On the one hand, the laws have neither rules nor procedures for an individual to enforce their rights, specifically rights to data protection and privacy. On the other hand, the laws protect NIDA officials from prosecution in case of mishandling of data. In addition, Tanzania has no comprehensive data protection law or framework. This leaves individuals with no recourse in case of violation of rights.
Obligations and requirements to provide identification services
Only one Authority provides identification services in Tanzania. That is the National Identification Authority.
Additional comments regarding the legal situation for identification services or what FinTech’s must be aware of in this business area
Market size for identification services and biggest companies in this business area
It is a monopoly market.
Additional comments regarding the economic situation for identification services or what FinTech’s must be aware of in this business area