The Central Bank of the UAE said it had signed a memorandum of strategic partnership with the Emirates Identity Authority, EIA, in order to achieve common strategic objectives.

The partnership also covers adoption of digital identity in electronic services provided by the UAE banks; sharing of knowledge, expertise and institutional experiences, and exchange of views and advice to ensure modernisation and institutional development.

The deal was signed by Mohamed Ali bin Zayed Al Falasi, Central Bank’s Deputy Governor, and Dr. Saeed Abdullah bin Motlaq Al Ghafli, Director-General of the Emirates Identity Authority. A number of senior officials from both sides were also present.

The partnership aims to promote communication and co-operation between the two sides in order to achieve common goals that will serve the interests of the country. It will also help develop, improve and simplify the procedures for authenticating and validating customers’ identity, solely based on the ID cards issued by the EIA. This identification tool can enhance and diversify the financial services provided by the UAE banks, thus contributing to the improvement of the country’s ranking in this area.

"By signing this memorandum, the Central Bank contributes to strengthening the electronic transformation of the services provided by financial institutions in line with the vision of the UAE’s leadership with respect to Smart Government," Al Falasi said.

He also expressed his happiness over the deal with the EIA, noting that "this step is of great importance in supporting the emergence of more sophisticated electronic financial services in the UAE that meet the needs of all stakeholders in terms of easiness, efficiency and safety, thanks to the digital identity system, which has proved its efficiency since its launch by EIA in 2009".

Al Ghafli stressed that the memorandum could usher in extensive usage of the "smart" identity card and its adoption as the essential enabler for more services in the financial and banking sector. That will essentially make it the first such card in the UAE that goes beyond identity authentication.

He also added that the UAE recorded an international scoop by using the ID card in the field of financial and banking transactions and banking systems, through its adoption as an ATM card by a number of banks operating in the country.

According to him, the signing of the memorandum will encourage various financial institutions to leverage various uses of the card in order to increase customer advantages and reduce costs related to data processing and card issuance. This, in turn, will contribute to promotion of economic efficiency and competitiveness of the UAE.

Ghafli also confirmed the EIA’s readiness to provide full technical support to the institutions opting for the ID card system that will help introduce new services and reduce the time and efforts required for implementation. This would ensure added value for customers, and quality, efficiency and effectiveness in the performance of these institutions.