Good news for smart ID cards and passports at banks

The Banking Association of South Africa (BASA) and Department of Home Affairs (DHA) are nearing the finalisation of legal agreements that will allow more bank branches to support smart ID card applications and passport renewals.

The DHA and major banks first started piloting the bank branch-based Home Affairs service eight years ago.

Bank customers book an appointment at a supported bank branch for a smart ID card application or passport renewal via the eHomeAffairs website.

They must then present themselves at the branch in their booked slot to provide biometrics. After the card has been printed, they must return to the branch to collect the document.

The process is completely paperless. All the required details are submitted online, and payment is also made on the eHomeAffairs website.

All these factors allow for a faster and more seamless experience than when visiting a traditional Home Affairs office.

By the end of March 2024, over 1.4 million people had received their smart ID cards or renewed passports via bank branches.

While that works out to around 500 documents per day over eight years, the numbers are negligible compared to the total applications for ID cards and passports processed by the DHA.

While about 666,000 smart ID cards have been issued by bank branches since 2016, over 25 million more have been acquired at regular DHA branches.

This is because few bank branches still support the system despite banks’ eagerness to expand.

By early 2020, only 16 branches supported the service, and although banks planned to add another 19 locations in that year for a grand total of 35, the number had only increased to 30 by late 2023.

Under the memorandum of understanding (MOU) between the banks and DHA, the system uses the department’s employees to render the service.

Therefore, the banks have offered up their branch space and facilities with little benefit to their own business.

They also have very little control of the overall experience, as all the associated systems — including for bookings and collection notifications — are run by the DHA.

About three years ago, BASA stepped in to help facilitate proper long-term public-private partnership (PPP) agreements between the DHA and major banks.

Repeated extensions of the MOU allowed the banks to continue offering the service in the interim.

Agreements in place within weeks

BASA’s prudential head, Mark Brits, has confirmed to MyBroadband that the PPP agreements should be completed and signed by the end of September 2024, with the last bit of legalities getting ironed out.

The only big adjustment the PPPs will enable is that the banks will be able to deploy their own staff to process applications and collections.

DHA staff will be released back to the department to help strengthen services at its own offices.

The MOU has been extended by another year to ensure a smooth transition and give the DHA time to finalise its legal frameworks so that bank staff can handle its services.

However, Brits said that the finalisation of the agreements would mean banks can start expanding their DHA-enabled branches.

South Africans should not expect a sudden surge in new branches, as the banks and DHA still need to agree on the best locations to roll out the service.

The rollout strategy will be based on several factors — including providing adequate coverage in areas with demand and ensuring a particular branch has sufficient staff and expertise to render a high-quality service.

In addition, the rollouts will require the State Information Technology Agency to connect the branches with Home Affairs systems, including the National Population Register.

Several banks have told MyBroadband they will definitely expand their Home Affairs-enabled footprint once the agreements are in place.

Absa said it already had 12 branches in mind for rollout once the PPP was finalised.