Laboremus wins tender to develop Digital ID verification for Financial Sector
Bank of Uganda (BoU), in collaboration with Uganda Bankers’ Association (UBA) and Financial Sector Deepening Uganda (FSDU) have signed a contract with fintech company Laboremus Uganda to develop a digital ID verification system to be used by all banks and other licensed financial service providers in the country.
The partnership was launched at a press conference at the Golden Tulip Hotel in Kampala today.
The system will be hosted at Bank of Uganda and will interface with and use NIRA’s existing records, as well as the National ID card system, to help banks verify the identity of existing and prospective clients in account opening and transaction processing among others. The system will offer a secure, multi-factor digital authentication that will be available to all companies in the financial services sector.
The development means licensed financial service providers can speed up identity authentication processes, cut costs of previous length manual processes and increase reach particularly to previously unserved and underserved customer segments especially people living in rural areas or in the diaspora. Furthermore, it will be an important building block for enhancement of existing electronic channels like agent banking and other innovation within the financial services sector.
The system is expected to make it more efficient to on-board potential customers. Providers will have access to new sets of data that will enable them to improve and develop new financial products and services.
Digitizing the customer verification process will simplify customer acquisition, increasing the probability of reaching more customers with formal financial services. Providers can also leverage these operational efficiencies to lower the costs of previously manual processes – these savings can be transferred to customers by making financial services more affordable.
Finally, the data and information associated with specific customers or groups can be used to accurately profile them and empower providers to design financial products and services that best suit the financial needs of all, including lower-income earners, encouraging increased usage.
QUOTES FROM LABOREMUS
"This project is a milestone in bringing KYC practices in Uganda to the next level. It will improve the quality of identity checks, reduce costs and create a path for more innovative and better ways to offer financial services to Ugandans," says Bram van den Bosch, Managing Director of Laboremus Uganda.
"Financial institutions should soon be able to perform digital verification of National ID via an API, portal or using an app. This should simplify customer onboarding and improve customer experience!" adds Laboremus' Head of Technology, Timothy Musoke.
You can watch the live stream from the press conference on our Facebook page.