Following the Central Bank of Nigeria’s (CBN) directive banning mobile money operators and fintech firms from onboarding new customers, panic has gripped some bank customers. The directive affects companies like OPay, Palmpay, Kuda Bank, and Moniepoint, raising concerns about the safety of funds and the integrity of financial institutions.
The move, linked to an ongoing audit of Know-Your-Customer (KYC) processes amid worries about money laundering and terrorism financing, has left customers uncertain about the security of their accounts. Despite the lack of public commentary from the CBN, the directive coincided with court orders freezing over a thousand bank accounts allegedly involved in illegal foreign exchange transactions.
While the Bank Customers Association of Nigeria supports the CBN’s decision, customers express worry on social media platforms about the safety of their funds and the integrity of these fintech platforms. With regulatory scrutiny on the rise, customers question the wisdom of keeping money in accounts affected by the ban, hinting at potential mass withdrawals.
The impact of the ban on financial inclusion targets, particularly in light of fintechs’ role in expanding access to financial services, remains uncertain. As customers await further developments, the fintech industry faces a pivotal moment in ensuring compliance with regulatory standards while maintaining customer trust and confidence.
