Fidelity Bank Reportedly Delists Opay, Moniepoint, And Palmpay Over KYC Concerns

 Fidelity Bank has restricted consumer fund transfers to neobanks, including Moniepoint, Kuda, OPay, and PalmPay, over concerns that their lax KYC processes are leading to increased fraud cases.

A check on the Fidelity Bank app showed that the neobanks were no longer listed on the list of approved financial institutions.

 

The digital banks are no more available for selection on Fidelity Bank’s mobile app but the bank in it's explanation informed customers that the restrictions were related to an app upgrade.

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But people close to the situation had hinted TechCabal that the transfer restrictions was not actually due to their system upgrade as claimed but over rising fraud and customer verification concerns.

 Palmpay’s Chief Marketing Officer, Sofia Zab while speaking to TechCabal on the matter, said: 

“They gave us a notice last week that they are upgrading their systems and will put us back after that is done.” 

 TechCabal says sources connected to Fidelity Bank informed iy that the restrictions are related to mounting fraud losses.

  “The issues are due diligence and KYC,” said a bank source who asked not to be named.

 “Until they get their house in order, they will continue to experience issues [like being blocked] by banks.”