Mobile money operators and fintech companies including Opay, Kuda, Moniepoint, and Firmoney have been banned from onboarding new customers by the Central Bank of Nigeria. This Report as contained in Puch Newspaper, April 30, 2024 was causing panic among the customers of the financial companies.
The apex bank in Nigeria imposed the restriction against the virtual financial institutions because of the ongoing audit of their Know Your Customers (KYC) process.
Controversies have trailed the KYC processes of the companies, and the concerns of money laundering via their channels. Since the ban, a great deal of the companies have been reticent except Opay, as reported in Punch, May 1, 2024, that assured their teeming customers that there was no cause for control as everything is under alarm. They expressed readiness in implementing as ever, the CBN guidelines to banks and other financial institutions especially as it concerns strict application of KYC rules.
Fintech companies are companies which offer a more accessible financial services, thanks to technologies. This is evidence in the name Fintech which Traficana called a portmanteau of finance and technology. Fintech companies just like elsewhere has been embraced in Nigeria just behind the Internet as the most adopted consumer technologies. There are an upward of 150 fintech companies in Nigeria offering services including loan, transfer, deposit, withdrawal and bill payments.
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