The Central Bank of Nigeria (CBN) has launched an electronic referencing system to improve bank account process.
The Director, Banking and Payments System, Mr. Dipo Fatokun in a circular announcing the introduction of the new system said that the Electronic reference system involves the sending of account opening documents electronically among banks through an internet based portal created and operated by NIBSS.
“The e-Referencing system is a web based automated document management system, designed to process customers account references, and is capable of eliminating the inefficiencies of the old ways of manual reference processing system”, He explained.
According to the CBN, “Besides high illiteracy level and low confidence in the Financial System, a major reason for this relatively small number of account holders in Nigeria is the inter-bank reference bottleneck which makes it difficult for new accounts to be opened speedily. At times, the prospective bank customers get frustrated and eventually abandon the process of opening a bank account.
“The Nigeria Inter-Bank Settlement System (NIBSS) Plc, in fulfilment of its shared- service mandate and in conjunction with the Committee of Heads of Bank Operations (CHBO) has agreed to develop an electronic reference (e-Reference) portal, such that account opening processes of Nigerian banks can be fast-tracked with regards to inter- bank referencing.”
However, he stressed that “The implementation of this solution ensures that inter- bank references become faster, more efficient and traceable, by both the presenting and receiving banks. It is also designed to enhance compliance with the existing Know Your Customer (KYC) directives. The e-Reference Portal, which is hosted by NIBSS requires that receiving banks respond to inward references within three (3) working days.”