The African Development Fund (ADF) Board of Directors has approved eight million dollars to strengthen the banking system in Africa. According to a statement by the African Development Bank (AfDB), the money would be used to create a system for uniquely identifying banks that is digitally interoperable. The money, according to the statement, was also intended to create a uniform framework for customer identification across the Gambia, Guinea, Liberia, and Sierra Leone.

The statement revealed that project implementation will begin in July 2023 under the direction of the West African Monetary Institute (WAMI). It noted that “it will work with central banks of the participating countries and in close collaboration with banking and non-banking financial service providers”. 

Also, “the project is expected to enhance financial sector efficiency within the participating countries, leading to increased access to finance and further regional integration efforts”. On March 29th, the bank’s concessionary lending window gave its approval for the funding. 

The new bank identity system, according to the announcement, will connect people’s bank accounts with various financial service providers, as it will help strengthen their relationships with correspondent banks, fight fraud, prevent loan defaults, and regularly verify the identities of their clients. 

Also, the Know-Your-Customer complaint finance sectors will increase customer trust and confidence, which will eventually promote access to and use of financial solutions. It was stated that the project would involve approximately 53 financial service firms from the participating nations. 

Ahmed Attout, Director of the AfDB’s Financial Sector Development Department, hailed the board’s endorsement and noted that it demonstrated the close relationship between the Bank and WAMI.