Speaking at the 3i Africa Summit 2026 in Accra, Premier Oiwoh, CEO of the Nigeria Inter-Bank Settlement System, raised an important question that cuts to the heart of Africa’s digital future:
Why is Know Your Customer (KYC) still such a major challenge in today’s world?
According to him, identity verification should already be standardized globally. In an era where money, businesses, and people increasingly move digitally across borders, fragmented KYC systems are becoming barriers to innovation, financial inclusion, and economic growth.
His comments highlight a growing debate across Africa’s fintech and banking sectors:
Can Africa truly build a seamless digital economy without a unified approach to digital identity?
What Is KYC and Why Does It Matter?
KYC short for “Know Your Customer” refers to the process banks and financial institutions use to verify the identity of customers.
This often includes:
- National IDs
- Passports
- Proof of address
- Biometric verification
- Phone number validation
- Tax identification details
The purpose is simple:
to prevent fraud, money laundering, terrorism financing, and illegal financial activity.
However, while KYC is designed for security, it has also become one of the biggest sources of friction in financial systems worldwide.
Africa’s Digital Economy Is Growing Fast
Across Africa, digital finance is expanding rapidly.
From mobile money in Kenya to fintech innovation in Nigeria and growing digital banking ecosystems in Ghana, millions of Africans are increasingly relying on digital financial services.
Yet despite this growth, many users still face frustrating onboarding processes.
In some cases, people must repeatedly submit the same identification documents across multiple banks, apps, and financial platforms.
Cross-border transactions often become even more complicated.
An entrepreneur operating between Ghana and Nigeria may still need to undergo multiple layers of identity verification despite already being verified within one system.
This creates delays, inefficiencies, and unnecessary costs.
The Problem With Fragmented Identity Systems
Premier Oiwoh’s comments point to a larger structural issue:
many identity systems still operate in isolation.
Different countries, institutions, and financial platforms often use different standards and databases that do not communicate effectively with one another.
This fragmentation creates several problems:
- Slower customer onboarding
- Higher compliance costs
- Reduced access to financial services
- Increased operational inefficiencies
- Difficulties in cross-border payments
- Barriers to African trade integration
For startups and fintech companies, fragmented KYC systems can also increase costs significantly, making it harder to scale across multiple African markets.
Why Standardization Matters
A standardized digital identity framework could transform Africa’s financial ecosystem.
If identity systems were more interconnected and recognized across borders:
- onboarding could become faster
- digital payments could become smoother
- financial inclusion could expand
- compliance costs could decrease
- trust in digital systems could improve
For ordinary Africans, this would mean easier access to:
- banking
- loans
- insurance
- investments
- cross-border payments
- digital commerce
For businesses, it could unlock faster expansion across African markets.
The Bigger Opportunity for Africa
Africa’s economic future increasingly depends on integration.
Initiatives such as the African Continental Free Trade Area aim to increase trade and economic cooperation across the continent.
But trade cannot scale efficiently if identity verification systems remain fragmented and inconsistent.
A truly connected African digital economy requires:
- trusted digital identity systems
- interoperable financial infrastructure
- cross-border payment efficiency
- regulatory collaboration between countries
Without these systems, Africa risks slowing its own digital transformation.
Financial Inclusion Remains Critical
One of the biggest consequences of difficult KYC processes is exclusion.
Millions of Africans, especially women, rural populations, and informal workers, still struggle to access formal financial systems because they lack certain documentation requirements.
In some communities:
- proof of address may not exist
- formal identification may be limited
- digital literacy may remain low
This creates a situation where people who most need financial access are often the ones excluded by rigid systems.
A smarter, standardized, and more inclusive approach to digital identity could help bridge that gap.
Balancing Security and Accessibility
Of course, standardization also raises important questions.
How do countries protect:
- privacy
- personal data
- national security
- financial integrity
while still making systems more accessible and efficient?
This is one of the major challenges policymakers and financial institutions must solve.
The future of digital identity will require balancing:
- convenience
- security
- regulation
- trust
- and innovation
Africa’s Digital Future Depends on Trust
At its core, KYC is really about trust.
Financial systems need to trust who users are.
Users need to trust the systems protecting their information and money.
As Africa’s fintech ecosystem continues to grow, the countries and institutions that simplify identity verification while maintaining strong security standards may become leaders in the continent’s digital economy.
Premier Oiwoh’s comments at the 3i Africa Summit reflect a broader reality:
Africa’s digital future cannot rely on outdated, fragmented systems.
If the continent wants faster payments, stronger fintech ecosystems, and deeper economic integration, standardized digital identity systems may no longer be optional they may become essential.
