Tuesday, September 27, 2011

Network SIM Card Registration And Mobile Banking-Nigeria Case Study.


"This is want I think about the latest electronic banking innovation and revolution changing the lives of millions of people across the globe"
     The amazing increase in the mobile phone penetrating the globe is quite fascinating and unbelievable. This simple show that the world is becoming a global village. There is no doubt that this is credible social change that will ultimately control the pattern of the modern trade and as well as payment method.
     The SIM card (Subscriber Identification Module) in ones GSM mobile phone is the caller identification. Transferring this SIM card from one phone to anther means that one has simply transferring his/her identity to another phone. This is very important and should be understood in considering mobile banking as it may be possible to transfer your mobile money identity to another phone by means of SIM card transfer, SIM card swap. It therefore poses a risk to the end users. Mobile banking system should be ready to word -off these eventualities by flagging SIM card that have been swapped or re-activated as voted by many. But I believe that the purpose of SIM card swapping is for upgrading which is very nice and important in technological advancing nations. 
    In many advanced countries, legislation have been passed requiring mobile operators and service providers to register  and collect their "Know Your Customer" information for customers buying SIM card.
   Having started this in Nigeria, a great challenge faces Central Bank of Nigeria and mobile payment licensees against criminal activities. This requires acceptable standard of verifying the true owner of the SIM card because like other financial services, mobile payment is likely to be abuse especially by fraudsters and its vulnerability will be a unique one given the ease that even a little child can acquire and operate the mobile phone. It therefore becomes imperative that the principle of know your customer is critical to the success of mobile banking.
    There is no doubt that SIM card registration will serve as the ultimate for a successful mobile banking. Suffice to say, what Nigeria need at this early stage of SIM card registration is to build a single identity database for both foreigners and Nigeria using mobile phone.
    Verification can be carried out online to authenticate right owner of the mobile money system before honoring mobile payment request since there is an interface between the SIM card registration data bank and the mobile money payment.
     Nevertheless, where there are cases of loss or stolen phone assurance covers that no illegal or unauthorized mobile payment can be made.