mobiquity Money provides tiered KYC registration to democratize mobile money adoption
About
Applicant name: Comviva Technologies Ltd.
Innovation Name: mobiquity® Money – Tiered KYC solution
Innovation Type: Feature
Website: https://www.comviva.com/
Mission: mobiquity Money provides tiered KYC registration to democratize mobile money adoption
Innovation Description: Mobile money services use standard agent-based full-KYC single limit customer registration, leaving out people with no/less documents like migrants, refugees; limiting financial-inclusion. To overcome these, mobiquity platform, powering 70+mobile money services in 50+countries, launched tiered KYC solution.
The solution segments customers based on registration type(self-registration via mobile or registration at agent) & KYC details/documents (no/partial/full KYC), & assign different services & transaction/account limits to each segment.
Eg, in Morocco, mobiquity client offers 3-tiered registration:
Type1 wallet (No KYC)
Limit: MAD 200
Self-registration via USSD or mobile app
Type2 wallet (Partial KYC)
Limit: MAD 5,000
Registration at agent with valid ID
Additional service: International remittance
Type3 (Full KYC)
Limit: MAD 20,000
Registration at agent with recent ID & address proof
Self-registered wallet can be temporary wallets (eg. valid for 1 month), & can be upgraded to permanent wallet after full KYC at agent.
Innovation Inspiration: In Morocco, a new mobile money service launched in 2019 with 3 tiered KYC:
Type1- Instant self-registration with no KYC, MAD 200 cap
Type2- Registration at agent with valid ID (partial KYC, MAD 5000 cap)
Type3- Registration at agent with recent ID, address-proof (full KYC), MAD 20000 cap
Within 4months, 140,000 customers joined 70% type1 wallet & 30% type2 wallet. Type1 no-KYC wallet allowed consumers to instantly self-register & try the service, bringing confidence. Many upgraded from type1 to type2.
In Egypt, during COVID-19, mobile money provider launched self-registration (no-KYC) 3 months temporary wallet (cap EGP 10000), allowing consumers to open mobile-wallet from home during lockdown. Users can upgrade to permanent wallet (cap EGP 50000) by doing KYC at agent. (2 tiered KYC)
In Iraq, users get lite wallet (self-registered, 60 days, IQD 0.1Mn cap) and standard wallet (agent registration, full KYC, IQD 20Mn cap). Refugees with alternate documents get partial KYC wallet, but with some services disabled as per NGO/Govt dir
Who benefits from the innovation most? 1)Consumers:
-Inclusive: Migrants, poor, refugees with no/less documents can open no-KYC/partial-KYC mobile wallet
-Emergency wallets: Instantly open mobile wallet in emergency like flood/pandemic & receive financial-aid. In Egypt, during COVID-19 temporary wallet launched with self-registration from home
-Trial: A self-registration no-KYC wallet allows user to instantly open mobile wallet & try services before registering at agent, ensuring higher uptake
2)Mobile money provider:
-higher uptake: Instant, hassle-free self-registration; service trial brings confidence; enabling migrants, refugees without documents to use service – increases mobile money adoption
-Flexibility: Number of KYC-tiers, registration process (self/agent), validity, thresholds, services is configurable, ensuring compliance with regulatory
3)Regulator:
-Tiered-KYC model is inclusive, increases financial inclusion
-Security: Setting services & transaction limits based on KYC type ensures security & compliance.
What are you most proud of about your innovation? 1)Balances compliance, security & inclusiveness: Tiered KYC model allows people in emergency (draught, flood, pandemic); new users who want to try service; migrants, poor, farmers, women, refugees with no/less documents to open mobile wallet & get financially included, but with lower transaction/balance limits & fewer services/use cases, providing security, fraud & money laundering checks.
2)Great results: Implemented by multiple mobile money providers in many countries like Morocco, Iraq, Egypt, Myanmar etc. In Morocco, 140,000 users added in just 4 months due to no-KYC self-registration option. In Egypt, self-registration temporary wallet launch led to massive 14% growth in user in 1 month. In Iraq, 200,000 refugee households benefited due to flexible KYC.
3)Flexible: mobiquity offers mobile money providers flexibility to set 2, 3 or more tiers/segments depending on KYC type (no/partial/full), registration process (self/agent) etc and assign any transaction limit, services/use-cases to these tiers as directed by regulators.
Status of Innovation: In-market
Innovation Active Since: 11/20/2017
Applicant Type: Private Company
Headquarter City: Gurgaon
Headquarter Country: India
Year Founded: 1999
Main Category
Main Category Choice: Compliance Solution
Why do you think you should win this category?:
To increase digital wallet adoption & financially include unbanked people with no/less documents, regulator globally are adopting tiered KYC approach for mobile money with different threshold & service for each tier.
mobiquity has helped many mobile money providers globally to successfully implement regulator’s tiered KYC (multi-wallet) approach, by segmenting people based on KYC (no/partial/full), KYC process (self-registration on mobile/ eKYC via mobile/laptop / full KYC at agent) etc and assigning transaction/balance limits, services/use-cases, validity(month/year/unlimited) to each KYC segment. Thus it achieves objective of financial inclusiveness of all, higher adoption while ensuring security, compliance & control of frauds & money-laundering through thresholds & service restriction.
For example, in Morocco, type1 wallet users (self-registered on mobile, no-KYC) can do domestic remittance (limit MAD 200), while type 2 or 3 (partial/full-KYC at agent) can do both domestic & international remittance (limit MAD 5000/20000).
Secondary Category
Secondary Category Choice: End-user Experience
Why do you think you should win this category?
1)Benefits consumers-
-Self-registration: Lowest tier usually offers self-reg from home with no KYC, which is quick, convenient, hassle-free, digital, paper-less; truly suited for today’s generation.
-For one & all: No/partial KYC ensures women, migrants, refugees with no/less/alternate documents can use mobile wallet & get financially included. Higher limit full KYC wallets for HNI, SME, businesses for B2B transactions, intl remittance
-Trial: Allow users to try service with no-KYC self-registered wallet before upgrading to permanent wallet
-Emergency wallet: Get temporary wallet quickly in emergencies like flood/draught/pandemic
2)Benefits mobile money providers:
-Quick time to market: Solution can be deployed quickly. In Egypt it was deployed in less than 10 days during COVID-19.
-Flexibility: Number of KYC-tiers, registration process (self/agent), validity, thresholds, services is configurable, ensuring compliance with regulatory
-Balances compliance, security & inclusiveness: Lower KYC compliance, lesser services & txn limit.
Team Members
Full Name: Mohit Bhargava
Role: Product Marketing
Linkedin: https://www.linkedin.com/in/
Full Name: Monica Jasuja
Role: Head, Product Management, Mobile Financial Solutions, Comviva
Link: https://www.linkedin.com/in/
Full Name: Ritvik Sinha
Role: Project Manager
Link: https://www.linkedin.com/in/
Supporting Links
mobiquity® Money Tiered KYC Mulit-wallet Solution Pitch Deck: https://www.comviva.com/wp-
