Jordan’s Financial Institutions Embracing Electronic Know Your Customer Procedures
Revolutionizing Identity Verification in Jordanian Banks
Amman, Jordan - The Jordanian Private Banks Association (JoPACC) has launched an Electronic Know Your Customer (eKYC) project to combat financial crimes and enhance financial inclusion in the country.
What is eKYC?
The eKYC process is a digital, paperless procedure that captures information from IDs, extracts digital data from government-issued IDs, or uses digital identities and facial recognition for online identity verification. This remote process minimizes compliance costs, bureaucracy, and risks associated with identity verification.
Key Objectives of the Project
Under the project’s first three-year strategy, JoPACC aims to:
- Advance financial infrastructure
- Offer digital channels that enhance the uptake and active usage of services
- Improve the seamlessness of the user experience
The eKYC service will enable financial institutions to digitally obtain required KYC information, paving the way for ubiquitous access to financial services remotely, securely, and digitally.
Project Milestones
The project has gained momentum with JoPACC signing a cooperation agreement with the Ministry of Digital Economy and Entrepreneurship in December 2021. The first stage of the project is expected to be completed by the second quarter of 2022, allowing all interested banks in Jordan to access trusted data held by the government through JoPACC’s infrastructure.
Benefits of eKYC
The eKYC project has the potential to:
- Significantly reduce redundancy and costs within Jordan’s financial sector
- Provide a more efficient and secure way for customers to establish their identities
- Enhance financial inclusion, reducing regulatory burden, and improving the overall customer experience
Primary Stakeholders
The primary stakeholders of the service include:
- All financial institutions licensed by the Central Bank of Jordan
- Government agencies acting as identity data providers
- Private sector companies
- All citizens, residents, and refugees in Jordan
Conclusion
The eKYC project is a fundamental asset in the digital economy and financial inclusion ecosystem, with far–reaching implications for Jordan’s financial landscape. As Jordan continues to digitize its financial infrastructure, the eKYC project represents a significant step forward in promoting financial inclusion, reducing regulatory burden, and enhancing the overall customer experience.