FDH Bank integrates Malawi National ID system through NRB system

FDH Bank on Friday became the first bank in the country to integrate the National Registration Bureau (NRB) National Identity database with its Know Your Customer (KYC) system which will facilitate the secure and effective validation of customer details through the mandated NRB system.

 Managing Director for FDH Bank, Eric Ouattara, signed the partnership on behalf of the bank while Harry Kanjewe, Chief Director for NRB signed on its behalf.

Ouattara said FDH is proud to partner with NRB which is the exclusive institution mandated to implement an effective civil registration system.

“This agreement cements the integration of the NRB National ID system with FDH Bank’s KYC system which will enable validation of KYC details provided to the bank by customers using the NRB National Identification Database.”

“In consideration of the accuracy of the NRB’s database which contains genuine information about genuine Malawians, an Application Platform Interface (API) will be developed to facilitate and improve the efficiency of financial services through an error free system,” said Ouattara.

He said once integrated with FDH Bank, this system will provide and improve verification of customer’s details, fraud management, account linkages, credit rating and reduction of money laundering practices through the harmonization of the KYC database and the use of the National ID.

Ouattara said The Reserve Bank of Malawi (RBM) expects all banks to have integrated by September 2019 and that by 1st October 2019 all banks will be live on this system.

“FDH Bank is the pioneer in this integration as it is the first bank to sign the agreement and we are not only pleased but honored with this milestone we are marking today. As a bank that believes in growth, we take pride in championing initiatives that promote growth of the financial sector and the country at large,” said Ouattara.

He said once the project is finalized, FDH Bank will use the National ID as the main reliable source of information to verify the identity of a client willing to access banking services.

“Consequently, this development will reduce fraud and assist the bank in servicing its customers efficiently and effectively,” assured Ouattara.

Speaking at the same function, Kanjewa said RBM in 2018 issued a directive that the National ID should be the primary identification tool for opening of new Bank Accounts of Malawian nationals by Banks and further banks were requested to verify the authenticity of the Customer’s National ID Cards with the NRB after updating the KYC Information.

He thanked FDH Bank for being the first bank to sign the Memorandum of Understanding (MoU) with NRB on the National IDs.

“Let me specifically commend FDH Bank for being the first bank to come forward and sign this MOU with NRB. You have made a bold step, and as NRB, we believe you have set the pace of identification business in the banking sector.  We therefore expect more banks to follow suit in the near future,” said Kanjewe.

United Nation Development Programme (UNDP) Technical Adviser Tariq Malikwhose organization has been supporting the National IDs project also hailed FDH Bank for signing the MoU with NRB.

“FDH Bank, by implementing its KYC policy, will be able, not only to understand the customer better, but also manage risks prudently, combat identity theft, prevent money laundering and financial fraud,” said Malik.

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