The Board of Directors of the African Development Fund (ADF) has approved $8 million to boost the banking system on the continent.

A statement by African Development Bank (AfDB) said the fund was for establishing a digitally interoperable unique bank identification system.

It said the fund was also meant to establish a harmonized customer identification framework for the Gambia, Guinea, Liberia, and Sierra Leone.

“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.

According to the statement, the new bank identification system will link the banking accounts of individuals across different financial service providers

It said over 53 financial service providers across the participating countries would be included in the project.

“This will allow them to verify their clients’ identities on an on-going basis (Know-Your-Customer or KYC), combat fraud, discourage loan defaulting and strengthen correspondent banking relationships.

“On the part of customers, KYC-compliant finance sectors will bolster trust and confidence and ultimately encourage access and usage of financial solutions,” the statement said.

WAMI Director-General, Dr Olorunsola Olowofeso, said the Unique Bank Identification (UBI) and Digital Interoperability project was borne from the Bank Verification Number (BVN) success implemented by the Central Bank of Nigeria.