Digital shift locks out the poor

POST-apartheid SA has continually struggled to balance the contending forces of modern global economics dominated by big business and innovation with the necessity to redress historical social inequalities in education, healthcare and financial services.

- PROFESSOR STELLA BVUMA

As we have learnt that from July 1, the department will charge R10 per real-time identity verification, up from a nominal 15c.

Taken at face value, a 6,500% increase in the cost of identity verification is staggering. However, the need to upgrade the service with appropriate pricing to meet the demands of the 21st century is not negotiable.

The necessity for an effective identity management system in an era of digital transformation is crucial to combat fraud, cybercrime and money laundering as well as to provide effective services across all sectors.

As financial services are digitised, the verification of identity is a critical component. Financial institutions must make use of the home affairs services in the provision of their services.

Bringing SA’s large unbanked population into the financial system requires an affordable, accessible digital solution.