The West African Monetary Institute (WAMI), in coordination with the central banks of the participating nations and in close coordination with banking and non-banking financial service providers, will be in charge of project implementation beginning in July 2023.
The project’s goal is to boost the efficiency of the financial sector in the participating nations, which will expand access to credit and promote regional integration initiatives. On March 29, money from the Bank’s favorable lending window was approved.
Using the new bank identification system, people’s accounts with various financial service providers will be connected. The project will comprise over 53 financial service providers from all of the participating nations. As a result, they will be able to enhance their relationships with correspondent banks, fight fraud, deter loan defaults, and regularly verify the identities of their clients (Know-Your-Customer, or KYC).
Customers’ trust and confidence in the finance industry will increase as a result of KYC compliance, which will ultimately promote use of financial products.
WAMI Director General, Dr. Olorunsola E. Olowofeso, said that: “The Unique Bank Identification (UBI) and Digital Interoperability project was borne from the success of the Bank Verification Number (BVN) implemented by the Central Bank of Nigeria.”
”The BVN, an 11-digit unique identity for each individual across the Nigerian Banking industry, is tied to all bank accounts and has resulted in a drastic reduction in electronic banking fraud, non-performing loans and elimination of ghost names from the civil service payroll.“
Olowofeso added that the West African Monetary Zone’s financial integration will be strengthened thanks to the Unique Bank Identity, which will make use of current national identification systems.
Ahmed Attout, the director of the African Development Bank’s Financial Sector Development Department, hailed the board’s approval and noted that it demonstrated the close relationship between the Bank and WAMI.
“Irrefutable and secure identification is fundamental to building financial consumer access and trust and overall development of the financial sector,” he observed.
