UGANDA: Bank of Uganda Unveils E-KYC Project to Boost Financial Inclusion
The Bank of Uganda has announced the launch of an electronic Know Your Customer (e-KYC) project aimed at enhancing transparency and financial inclusion in the country. The initiative is designed to provide a centralized platform for authenticating customer information in real-time.
Background
According to Tumubweinee Twinemanzi, Executive Director Supervision at the Bank of Uganda, the absence of a flexible, timely, and cost-effective means of verifying the identity of financial services consumers has been a major constraint to financial inclusion and credit growth in Uganda. The lack of unique identification using financial cards has excluded other consumers of financial services who continue to rely on manual KYC processes and procedures.
Project Details
The e-KYC project is expected to provide a secure electronic platform for exchanging information between the National Identification and Registration Authority (NIRA) and supervised financial institutions. The initiative will enable real-time authentication of customer information and reduce the risk of fraud and impersonation. The project is being implemented in partnership with the Uganda Bankers Association and Financial Sector Deepening Uganda.
Benefits
The e-KYC project is expected to benefit not only supervised financial institutions but also non-regulated and non-traditional financial services providers, such as savings and credit cooperatives (SACCOs). The project will:
- Provide a centralized platform for authenticating customer information in real-time
- Reduce the risk of fraud and impersonation
- Enable real-time authentication of customer information
- Increase access to financial services
- Promote financial inclusion
Implementation
The e-KYC project is being implemented in line with the government’s vision of promoting financial inclusion and increasing access to financial services. The Bank of Uganda will continue to provide an enabling legal and regulatory framework for the financial sector to thrive.
Conclusion
The launch of the e-KYC project by the Bank of Uganda marks a significant step towards enhancing transparency and financial inclusion in Uganda. The initiative is expected to provide a secure electronic platform for exchanging information between NIRA and supervised financial institutions, reducing the risk of fraud and impersonation and increasing access to financial services.