Fidelity Bank has decided to reinstate customer transfers to prominent neobanks, including OPay, Moniepoint, Palmpay, and Kuda, a few weeks after temporarily blocking them due to mounting concerns related to fraud and customer verification.
Reports indicate that Fidelity Bank has officially re-established the capability for its customers to make transfers to these neobanks, a move that comes after a period of engagement between the bank and these digital platforms.
News About Nigeria had previously reported that Fidelity Bank had temporarily halted customer transfers to these specific neobanks due to rising concerns about fraudulent activities and verification of customer identities.
A source at one of the affected neobanks confirmed that discussions were held between them and Fidelity Bank, which provided insight into when the reinstatement would occur.
One source suggested that the Nigeria Inter-Bank Settlement System (NIBSS), acting as a regulator, conveyed its disapproval of Fidelity Bank’s initial decision to restrict transfers to these neobanks.
The limitations initially came to the fore when several Fidelity Bank customers noted the absence of these neobanks from the approved financial institutions list within the Fidelity Bank app.
OPay initially denied any impact from these restrictions, although customers continued to voice concerns.
A source at Moniepoint corroborated the transfer restrictions, while Sofia Zab, Palmpay’s Chief Marketing Officer, clarified that PalmPay’s removal was unrelated to any perceived issues with their service but rather a necessary system upgrade implemented by Fidelity Bank.
Neobanks have gained significant popularity in Nigeria, serving as a valuable means of addressing financial needs, especially during cash crunch situations.
The rapid transaction processing speed and cost-effectiveness associated with neobanks have made them a preferred choice among businesses, enabling them to process customer payments efficiently and expand their operations.
