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| CBN Bans Opay, Palmpay, Others' New Accounts, Sparking Panic |
The President of the Bank Customers Association of Nigeria supports the CBN's decision, emphasizing the need for strict regulatory compliance. Some customers welcome the move, citing the need for better KYC processes to prevent scams and fraudulent activities.
The Central Bank of Nigeria (CBN) has temporarily banned mobile money operators, including prominent fintech firms, from onboarding new customers. This move has caused panic among some bank customers, who have taken to social media to express their concerns.
The directive affects key players in the industry, including OPay, Palmpay, Kuda Bank, and Moniepoint. The CBN's move is part of a rigorous audit of Know-Your-Customer (KYC) processes employed by these firms.
The President of the Bank Customers Association of Nigeria supports the CBN's decision, emphasizing the need for strict regulatory compliance. Some customers welcome the move, citing the need for better KYC processes to prevent scams and fraudulent activities.
Fintech companies have complied with the directive, halting new account creation temporarily. However, they argue that the target of increasing overall financial inclusion to 95% of the adult population by 2024 may be affected.
Some customers are anxious about the safety of their funds, with some suggesting transferring their money out of Opay and Moniepoint. Others have questioned the rationale for keeping money on these platforms.
The CBN's move aims to align the operational standards of fintechs with those of traditional deposit money banks and microfinance banks, ensuring the integrity and stability of Nigeria's financial system.
