…Banks demand plastic cards despite govt assurances
Government says the Nzika Digital ID Wallet carries the same validity as the physical national ID card. But some banks are refusing to accept it, leaving customers who do not have their plastic cards stranded.
Two months after Malawi launched the digital ID wallet with speeches, flags and foreign ambassadors, some customers are already being turned away at bank counters for presenting the digital version of their national identity cards, Zodiak Online reports.
The Bankers Association of Malawi is standing its ground. Its chief executive, Lyness Mkungula, told Zodiak Online that the digital ID is still being piloted, adding that banks must prioritise the security of customers’ money.
Mkungula said the National Registration Bureau (NRB) is testing the system with only one bank to establish whether it works, is secure and is ready for wider use.
That is one bank, two months after the launch.
When NRB introduced the wallet, it promised that the digital ID would carry the same validity as the physical card when accessing services. At bank counters, however, that promise is falling flat.
NRB’s response has so far been limited to continued engagement with banks. Its spokesperson, Norman Fulatira, told a local media house that the bureau would keep engaging financial institutions and urged them to embrace the digital system.
But there is no deadline for compliance, no clear directive and no consequences for banks that reject the wallet, despite the Reserve Bank of Malawi (RBM) declaring the national ID the primary identification document for financial transactions.
Launched in Lilongwe on September 16 as part of Malawi’s digital transformation drive, the wallet was developed through a United Nations Development Programme project with support from the European Union, Ireland and Norway. More than 22,000 Malawians had signed up by launch day.
Those 22,000 were told their phones could replace the plastic card. Some are now discovering that, at least at the bank, the phone is not enough.
