Digital Identification Systems, Digital Financial Services and Household Welfare in Ghana

Digital identification systems have become increasingly vital in promoting financial inclusion and improving access to social welfare programs, particularly in developing countries. This proposal investigates the causal impact of the adoption of biometric identification systems, specifically the Ghana Card, on household welfare in Ghana. The Ghana Card facilitates access to financial services and social welfare schemes, yet its cost limits access for the poorest and most marginalized individuals. This study, in collaboration with the National Identification Authority (NIA), aims to conduct a pilot study to assess the effects of subsidizing the card for low-income individuals and marginalized groups such as women and small businesses. Findings from the pilot study will guide the design of a larger randomized control trial (RCT) to evaluate the Ghana Card's broader impacts on financial inclusion and household welfare outcomes.