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There is no argument that banking is increasing digitally nowadays, with automated and data-driven technology boosting the economic institution beyond human imaginations. But the question that still baffles me is why do banks still require two referee forms from entrepreneurs and businesses to open a current account for their businesses?
Because in advanced countries (like the US, UK, Japan, and more), the referee form requirement for current accounts has long been ditched. These countries now use digital footprints to verify account holders' identities. Not that Nigeria doesn't have digital footprints to trail individuals' and businesses' identities, of course; we do. But why stick to the old rules?
Nigeria has bank verification numbers (BVN) that link individual bank accounts together, corporate affairs commissions (CAC) that document business identities, SIM registration across telecommunications that verifies SIM number ownership, and NIN that shows the real identity of individuals in a national way.
With all these biometric verifications, real-time credit checks, and sophisticated anti-fraud systems, are now in standard practice. Yet, referee forms remain embedded in current account-opening processes across many financial institutions in Nigeria.
Even digital banks like OPay Business, Kuda Business, and Moniepoint Business Account are no longer requesting a third party to vouch for customers' identity. So, why are commercial banks still frustrating customers by requiring them to provide two references that own current accounts in the same bank before opening a current account?
