The Board of Administrators of the African Growth Fund has authorised $8 million in funding towards the institution of a digitally interoperable distinctive financial institution identification system and harmonised buyer identification framework for The Gambia, Guinea, Liberia and Sierra Leone.
Implementation of the challenge will start in July 2023, led by the West African Financial Institute (WAMI), working with central banks of the taking part nations and in shut collaboration with banking and non-banking monetary service suppliers.
The challenge is predicted to reinforce monetary sector effectivity inside the taking part nations, resulting in elevated entry to finance and additional regional integration efforts. Approval of funding from the Financial institution’s concessional lending window was made on 29th March.
The brand new financial institution identification system will hyperlink banking accounts of people throughout completely different monetary service suppliers.
Over 53 monetary service suppliers throughout the taking part nations will probably be included within the challenge. This may permit them to confirm their shoppers’ identities on an on-going foundation (Know-Your-Buyer or KYC), fight fraud, discourage mortgage defaulting and strengthen correspondent banking relationships. On the a part of prospects, KYC-compliant finance sectors will bolster belief and confidence and in the end, encourage entry and utilization of monetary options.
Dr. Olorunsola E. Olowofeso, WAMI Director Normal, mentioned: “The Distinctive Financial institution Identification (UBI) and Digital Interoperability challenge was borne from the success of the Financial institution Verification Quantity (BVN) carried out by the Central Financial institution of Nigeria. The BVN, an 11-digit distinctive identification for every particular person throughout the Nigerian Banking trade, is tied to all financial institution accounts and has resulted in a drastic discount in digital banking fraud, non-performing loans and elimination of ghost names from the civil service payroll.“
Olowofeso additional famous that the Distinctive Financial institution Identification will leverage present nationwide identification methods and assist to strengthen monetary integration within the West African Financial Zone.
African Growth Financial institution Director for the Monetary Sector Growth Division, Ahmed Attout, welcomed the Board approval, noting that it attested to the sturdy partnership between the Financial institution and WAMI. “Irrefutable and safe identification is key to constructing monetary client entry and belief and total improvement of the monetary sector,” he noticed.
//Employees author
