In a bold move, Fidelity Bank has blocked transfers to neobanks like OPay, Moniepoint, Kuda, and PalmPay due to lax KYC processes raising fraud concerns.
🚫 🤖 Neobanks Restricted: Fidelity Bank is restricting fund transfers to neobanks, a concern that emerged over rising fraud and KYC issues.
🏦 Traditional Banks Tighten: Traditional banks are now requesting KYC verification for neobank users, putting pressure on these digital financial services.
💼 Fraud Concerns: The move is in response to mounting fraud losses, signaling a call for more stringent verification practices.
🤝 Regulation Questions: Questions arise about unilateral restrictions, highlighting gaps in existing regulations regarding such actions.
🧐 CBN Involvement: It remains uncertain if Fidelity Bank communicated with the CBN before taking this step.
#FidelityBank #Neobanks #KYC #FraudPrevention #BankingNews
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