The Malawi Switch Centre (MALSWITCH) was established in 1999 by the Reserve Bank of Malawi to create a mechanism of providing an easy to use, secure and guaranteed electronic payment infrastructure in Malawi as part of the country’s National Payment System Modernisation Programme. Dr Matthews Mtumbuka, head of technical services at MALSWITCH took the podium at the BiometriX 2009 conference, held in Johannesburg this year to present an overview of the system and its benefits to both buyers and sellers in Malawi. Specifically, Dr Mtumbuka focused on how biometrics plays a crucial role in securing transactions.
MALSWITCH relies first and foremost on a national fibre backbone that links the MALSWITCH head office in Blantyre with its regional offices around the country. Through this redundant backbone, all financial transactions are verified and processed, reducing fraud and improving service delivery. The software foundations of the system are an EFT switch and an associated e-banking solution that actually handle the secure transactions, which range from ATM transactions, to mobile commerce, e-cheque clearing and more.
The manner in which users can purchase goods is via a smartcard, which can then be used as a debit, ATM, shopping or fuel card. The card contains each user’s personal details as well as their biometric data, which is linked to the individual’s profile on the national AFIS database. Not only does the use of biometrics ensure the cardholder is who they claim to be, but it prevents unauthorised users from being able to use someone else’s card.
Biometrics at work
When a user enrols for a MALSWITCH account, their details are collected by whichever institution enrols them, along with their electronically scanned fingerprints. The four best fingerprints are used to create a biometric key, which is compared to the national AFIS database to ensure the person is who they claim to be. Once cleared, the individual is issued with an IBA (Instant Bank Account) against his/her profile, the card is issued and the individual can start using it. Each transaction made with the card is electronically verified and the fingerprint biometric ensures only authorised people spend on their own cards.
Explaining why biometrics and specifically fingerprint biometrics were chosen in this project, Dr Mtumbuka notes that MALSWITCH wanted an identification mechanism that could not be forgotten, lost or stolen – such as passwords or PINs – and that was also very reliable. Ideally, the identification mechanism chosen would have all of the following properties:
* It had to be universally present at all times.
* It naturally had to be unique to the individual.
* It must be stable over time to ensure a specific individual is always recognised as himself or herself.
* It had to be easily measurable.
Although biometric measurements have certain disadvantages, such as requiring specialised equipment and trained personnel to manage, as well as being a capital-intensive project to get off the ground, the benefits and reduced opportunities for fraud swung the vote in favour of this technology. The system is currently in operation and to date, MALSWITCH has hundreds of thousands of registered users and the number continues to grow.
More than transactions
Realising the potential of an organisation with the reach of MALSWITCH, the centre has evolved to deliver more than secure financial transactions. In fact, MALSWITCH offers a wide range of products and services through three business units, namely the EFT switch, networks and application service provider (ASP).
The EFT switch comprises a network of ATMs and point of sale (POS) devices that use the smartcard for payments and the general transfer of funds from one point to another. Companies can pay employees salaries directly into the card (as it does with 700 000 government employees), avoiding the risks of carrying cash and providing a savings account for banked and unbanked employees. Cardholders are able to load cash, pay at retail outlets, or transfer funds to other cards with ease, as well as use the card for identification or as a loyalty card.
MALSWITCH also provides value added network (VAN) services to companies, financial institutions and the government. “Our VAN service is unique in that it is a total network solution provided by single service provider,” explains Dr Mtumbuka.
The organisation’s ASP service is linked to a development centre, which can offer a host of services to government or commercial organisations. The solutions offered range from payroll services to workflow applications, through to websites and custom Web applications.
Apart from the convenience of a single point of contact for the entire MALSWITCH service, the project has reduced the fraud and potential for fraud immensely, benefitting both buyers and sellers. Citizens can transact securely, with ease, understanding that their personal data is securely stored and managed.
For more information: www.malswitch.mw
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