JoPACC signs an agreement with MoDEE kickstarting the Journey towards a Digital Financial Identity in Jordan
The Jordan Payments and Clearing Company (JoPACC) signed a cooperation agreement with the Ministry of Digital Economy and Entrepreneurship (MoDEE), paving the way for financial institutions to identify and validate their customers digitally and remotely. Through the signing of this agreement, JoPACC aims to introduce a platform for electronic Know Your Customer (eKYC) that will enable customers to remotely onboard to financial services by authenticating their identities, thereby creating a functional digital financial identity for all financial users in Jordan. This agreement utilizes the data made available through Application Programming Interfaces (APIs) connecting financial institutions to the comprehensive data held by the government. The platform will enable financial customers to remotely access services provided by financial institutions by granting said institutions access to authenticated identity data. To ensure high levels of security, measures and policies will be implemented to protect all sensitive data and information.
The agreement, signed by the Minister of Digital Economy and Entrepreneurship H.E Ahmad Al-Hanandeh and JoPACC's CEO Ms. Maha Bahou, includes clarification of the terms and conditions related to the use of the APIs provided by the Ministry to JoPACC, who will, in turn, extend novel services to financial institutions. According to local and international regulations, financial institutions are required to obtain identification documents and verify their authenticity before initiating a formal relationship with any financial consumer. Currently, this process happens manually and requires the physical presence of the customer. Through JoPACC’s eKYC platform, this process will become digital with higher levels of assurance on the condition that the customer’s consent is obtained for their data to be is accessed.
H.E. Ahmad Hanandeh stressed that the signing of the agreement embodies the government's continuous promotion of widescale digitalization to serve national goals, achieve a digital economy, and promote sustainable development. This aligns with the previously issued Cabinet’s decision approving the integration of banks, mobile Payment Service Providers, and technology companies with the aforementioned data repositories. Additionally, the Minister expressed optimism regarding the anticipated ripple effects that the signing of this agreement will create, especially in strengthening the partnerships between financial institutions and Fintech companies and expanding the digital transformation cycle in the Kingdom. The platform is expected to significantly reduce costs and efforts, reflecting positively on the national economy. Moving in this direction will reduce human errors in identifying customers and verifying their identity through governmental sources, which will decrease financial fraud and identity theft. This project will allow residents and citizens of Jordan, whether inside or outside the Kingdom, to access financial services offered by banks and financial institutions in a secure and modern fashion.
JoPACC's CEO, Ms. Maha Bahou, emphasized the financial sector's efforts to keep pace with the digitalization taking place across the Jordanian economy and expand the range of digital financial services offered to users. These services are characterized by their efficiency, speed, and availability around the clock while maintaining the highest information security standards. This platform will represent a groundbreaking move in this regard, utilizing blockchain to achieve high levels of security and transparency. Ms. Maha also applauded the efforts of MoDEE that aim to enhance the integrity of the national economy and all its services. She also praised the efforts of the Central Bank of Jordan and its continuous support to raise the efficiency of the financial sector and enhance the financial user experience without compromising on good governance or sound regulations. She reiterated that JoPACC and MoDEE hold a shared objective of creating an integrated and comprehensive structure in which the efforts of government institutions complement those of the private sector to serve all segments of the Jordanian society.