Some bank customers find themselves in a state of unease following the recent Central Bank of Nigeria (CBN’s) ban on online money operators, including fintech firms, from accepting new customers. This directive has stirred varying reactions, with the Bank Customers Association of Nigeria offering its support while customers express concern.
Fintech giants like OPay, Palmpay, Kuda Bank, and Moniepoint face restrictions on new client onboarding. Insider sources reveal the CBN’s KYC audit drive, citing concerns over money laundering and terrorism financing. These measures, though necessary for regulatory compliance, pose challenges to fintech operations and expansion efforts.
Despite silence from the CBN, attempts to seek clarity have been fruitless, adding to the regulatory ambiguity. Simultaneously, an EFCC court order freezes numerous accounts linked to illicit foreign exchange dealings, intensifying regulatory scrutiny. This dual development underscores broader concerns about financial integrity and regulatory oversight in Nigeria’s banking sector.
Uju Ogubunka, President of the Bank Customers Association of Nigeria, stands behind the CBN’s decision, emphasizing the importance of stringent regulations to safeguard the integrity of financial institutions. However, some, like Emmanuel Odunsi, applaud the move for its potential to enhance KYC processes, thus curbing fraudulent activities prevalent within these platforms.
This regulatory action isn’t novel; similar concerns prompted Fidelity Bank to halt transfers to these fintech platforms in 2023. Subsequently, the CBN introduced stricter KYC rules for all financial entities, particularly targeting fintech startups. Despite compliance from some fintechs, questions arise about the consistency and specificity of these regulatory interventions.
The CBN’s directive may impede financial inclusion goals, given fintechs’ crucial role in expanding access to services. Customers express concerns about fund safety amidst regulatory changes, reflecting uncertainties about digital finance’s future. These regulatory upheavals raise broader questions about Nigeria’s digital financial services landscape and its stability.
Meta Description: The Central Bank of Nigeria’s ban on fintechs enrolling new customers has caused concern among bank customers. While some support the move for tighter regulations, others worry about its impact on financial inclusion and the safety of their funds.
Follow us on Socials: