Transcript Authentication - Ministry of Rural Development

Government Program
Innovations
Presented by: Pial Islam, Managing Partner, pi STRATEGY CONSULTING
November 29, 2012
Bangladesh
Case Study
Introduction
 The Employment Generation Program for the Poorest (EGPP)
was introduced by the Government of Bangladesh in 2008 to
cushion the negative effects of the food crisis on the poor and
was then reconstituted to provide short-term employment
during agricultural lean seasons to poor and vulnerable
households.
 The implementing ministry for EGPP is the Ministry of Food and
Disaster Management (MOFDM).
 The program runs in two cycles a year.
 During the 2011– 12 session of the program, the total allocated
budget was around 125 million USD and more than 600
thousands beneficiaries were provided with employment in
around 4,500 unions covering all 64 districts of the country .
2
Areas of Concern
 Two key aspects of the EGPP are:
– Attendance Verification
– Payment Mechanism
 Concerns such as irregularities in muster roles at the worksite,
the payment of ghost workers or payments made to
beneficiaries without work having been performed were being
reported.
 Moreover, payment in hand-to-hand cash transactions on
weekly basis with manual processing and record keeping left
considerable exposure to misappropriation, payment
mismanagement, and abuse in individual payment cases
(delays, bribes, collusion, etc).
3
Goals of the Interventions
 Implementing an Attendance Verification System
(AVS) to authenticate the beneficiary and to
generate an accurate attendance record.
 Implementing a Payment Service Provisioning (PSP)
system to reduce manual processing in the system
and to lower current malpractices in the payment
mechanism.
Pilot Implementation Partners:
4
AVS – Identified Options
AVS
Biometric
Option1 : Finger Print
Scanning
Card Based
Option1 :
Bangladesh Postal
Cash Card (PCC)
Mobile Based
Option1 : Image Capturing
Option2 : PIN Verification
Option3 : SIM Tracking
Option4a : Mobile VAS (app
based)
Option4b : Mobile VAS
(USSD based)
5
Card based AVS
 Option 1: Bangladesh Postal Cash Card
(PCC)
– Each beneficiary will be provided with a PCC along with a PIN.
PCC will contain the photo and name of the beneficiary. Field
Supervisor, who is responsible for attendance, will be given a POS
device assigned to a particular work site. Beneficiary will swipe the
PCC in POS and then enter PIN. If they match, the attendance will
be recorded in a back-end central server.
BANGLADESH POST
Photo
Mobile
Network
Swipe the Card,
Enter PIN
EGPP Server
Postal Cash Card
18 digit Card No.
Beneficiary
PCC
POS
Field Supervisor
6
Mobile based AVS
 Option 4a: Mobile VAS (app. based)
– A customized mobile software is installed in Field Supervisor's
mobile phone and each beneficiary has an ID and PIN to verify
his/her identity through that app. During attendance session, Field
Supervisor prompts the menu and launches the attendance
verification app in his mobile. The app gets synced with the central
database and subsequently asks for PIN in random order of the
listed beneficiaries in that particular worksite. If the entered PIN
matches, attendance of the beneficiary will be recorded in the
central server connected through MNO network.
Enter PIN when
prompted
Beneficiary
Mobile app
Mobile
Network
EGPP Server
Field Supervisor
7
PSP– Identified Options
PSP
Card Based
Option1 : Bangladesh Postal
Cash Card (PCC)
Mobile Based
Option1 : bKash
Option2 : DBBL mobile banking
Option3 : Electronic Money
Transfer service (EMTS) of BPO
8
Card based PSP
 Option1 : Bangladesh Postal Cash Card
(PCC) EMTS
– BPO (Bangladesh Post Office) will provide PCC service at
the nearby post office of the work site. A beneficiary will be
able to withdraw his/her desired amount during the working
hours of the post office by using the cash card and verifying
the PIN.
Swipe Card and
enter PIN
Beneficiary
Withdraw
Cash
Mobile
Network
Bangladesh Post
Office Server
POS
at Post Office Branch
9
Mobile based PSP
 Option 1 & 2: DBBL & bKash
– Two competing providers have launched mobile banking services
last year in Bangladesh. These are: Dutch Bangla Bank Limited
(DBBL) and bKash. Each has wide agent networks with
comparable subscriber coverage. Beneficiaries who have mobile
phones can open an account at one of the agent points. The
weekly payment will be disbursed into beneficiary’s account. The
beneficiaries can withdraw money from their mobile banking
accounts from any of the cash points.
Use Mobile banking
account, verified
with a PIN
Beneficiary
Withdraw cash
Mobile
Network
Mobile banking
server
Mobile Banking Agent
10
Cost Comparisons: AVS Options
Per Beneficiary Cost (USD)
14
12
10
8
6
4
2
0
Complexity* of Implementation
16
Per Beneficiary
Cost (USD)
SIM
Tracking
Image
Capturing
PIN
Verificati
on
Applicati
on-based
VAS
USSDbased
VAS
Per Beneficiary Cost
*Complexity of implementation in terms of required time,
design, development, scalability, etc
11
Cost Comparisons: PSP Options
One week’s
Payment (875 BDT)
Two weeks’
Payment (1750 BDT)
60
55
50
45
40
35
bKash (W2W)
30
DBBL
25
Postal Cards
EMTS
20
15
10
5
2000
1900
1800
1700
1600
1500
1400
1300
1200
1100
1000
900
800
700
600
500
400
300
200
0
100
Charge (in BDT)
65
Amount (in BDT)
W2W = Wallet to Wallet Total Charge = (Cash in + Fund Transfer + Cash Out) Charge
Analysis shown uses January 20, 2012 data.
12
Proposed Solution Design
Mobile Based
Card Based
AVS
PSP
Mobile
VAS (app
based)
Mobile
Banking
accounts
Option 4a
Option 1 or 2
Option 1
Option 1
Postal
Card
Solution
Postal
Cash Card
Solution
Pre-Pilot
13
Pre Pilot

To asses the proposed solution designs in a
smaller scale a pre pilot program was conducted:
– Only the card based solution for AVS was tested in
the program.
– It covered about 220 beneficiaries across four work
sites in a single district.
– The program ran for six weeks during a regular
EGPP session.
– The card-based solution ran in parallel to the
existing paper-based system to allow for
comparative analysis between the two systems.

A brief evaluation was conducted at the end of the
pre pilot to extract lessons that can inform future
work in this area (initially a larger scale pilot and
eventually the nation-wide roll-out).
– Some findings from the evaluation are provided in
the next slide.
14
Pre Pilot Evaluation: Early Findings
– Most of the beneficiaries and field supervisors prefer the card-based
attendance system to conventional paper-based attendance system and
cited ‘reduction of corruption’ as one of the prime reasons behind their
preference
– Many beneficiaries (especially men) found it hard to remember the 4 digit
PIN, which they need to enter into the POS machine in order to record
15
attendance.
PIN Experiment

To better explore the hard-to-recall-PIN phenomenon and
identify potential solutions, a PIN Experiment was
conducted during pre pilot. The PIN Experiment had two
key components:
1. Pattern Recognition:
1. Memory Association:
–
Participants were instructed on how to link numbers with things in their daily lives,
families, and surroundings etc. For example, one of the participants said that he
has two grandchildren. He was guided to recall the digit ‘2’ through remembering
the number of grandchildren he has.
16
PIN Experiment (contd.)

The insights that emerged
from the PIN Experiment:
– Exposure to mobile
keypads enhanced
familiarity with English
digits
– New tools require more
effort initially, but leads to
improved performance
eventually
– 3-digit PINs may offer
better value than 4-digit
PINs, when the trade-offs
are considered
17
The Pilot
Scale of Pilot



Based on the learning from the pre-pilot program and the PIN experiment, a more involved pilot
program, which will cover about 10,000 beneficiaries, is currently being implemented.
Half of the beneficiaries will be offered a card-based system for AVS and PSP.
The remaining half will be offered a mobile-based system for AVS and PSP.
Bhurungamari, Kurigram
Bishwamvarpur, Sunamganj
Trishal, Mymensingh
Dashmina, Patuakhali
18
The Pilot (contd.)
AVS
Mobile Based
Mobile Supervisor (FS) will be
provided with a java-enabled cell
phone. FS asks for PIN in
random order of the listed
beneficiaries
in that particular
.
worksite. If the entered PIN
matches, attendance of the
beneficiary will be recorded in
the central server connected
through MNO network.
Option 4a
Card Based
PSP
Each beneficiary will be
given a mobile phone so that
they can open a mobile
banking account. Based on
the attendance report
generated from the EGPP
server, due payment will be
disbursed into beneficiaries’
accounts on time.
Option 1 or 2
Option 1
Option 1
Each beneficiary will be
given a 3-digit PIN in English
and FS will have a POS
machine. Beneficiary will
swipe the PCC at the POS
machine and enter their PIN
when prompted to provide
attendance.
Beneficiaries will go to
nearby post office branch
and swipe postal cash card
and enter PIN to withdraw
cash. Based on the
attendance report of EGPP
server, due payment will
be disbursed to
beneficiaries’ accounts
before hand.
19
Lessons Learned (to date)
 Locally designed/available solutions work
best
– It is better in the long run to select solutions that are locally
designed and readily available than those that are foreign,
even if they happen to be more elegant options.
 Change management requires a lot of effort
– Especially for programs that deal with local government
bodies and less-educated beneficiaries, change
management activities need to be well thought out and
allowed a lot of time.
 Proper value articulation can overcome
intrinsic hurdles
– Once people understand how a new solution helps them
directly (reduced processing time, greater transparency,
20
THANK YOU
For more information, please contact:
[email protected]
21