The need to develop a unified banking system that serves Africa in the area of synchronised banking services is the driving force of the African Development Fund.
To achieve its goal of boosting the banking system on the continent, the ADF has approved $8 million.
According to a statement by the African Development Bank (AfDB), the fund was for establishing a digitally interoperable unique bank identification system.
Also, the fund would help establish a harmonised customer identification framework for the Gambia, Guinea, Liberia and Sierra Leone.
Enhance Financial Sector Efficiency
“Implementation of the project will commence in July 2023, led by the West African Monetary Institute (WAMI).
“It will work with central banks of the participating countries and in close collaboration with banking and non-banking financial service providers.
“The project is expected to enhance financial sector efficiency within the participating countries, leading to increased access to finance and further regional integration efforts.
“Approval of funding from the bank’s concessional lending window was made on March 29,” it said.
Also, the ADF stated that the new bank identification system will link the banking accounts of individuals across different financial service providers.
Over 53 financial service providers would be included in the project. They would be selected from participating countries.
“This will allow them to verify their clients’ identities on an on-going basis (Know-Your-Customer or KYC).
“It will combat fraud, discourage loan defaulting and strengthen correspondent banking relationships.”
