In a surprising move, leading fintech companies including Kuda Bank, Moniepoint, OPay, and Palmpay have put a temporary stop to the creation of new customer accounts.
This decision aligns with a recent directive issued by the Central Bank of Nigeria (CBN).
The pause in new account openings comes shortly after the Economic and Financial Crimes Commission (EFCC) intervened in the case of 1,146 bank accounts suspected of engaging in unauthorized foreign exchange transactions.
Customers attempting to set up new accounts via these fintech applications have been facing challenges, although existing banking services remain unaffected.
Moniepoint communicated the halt in new customer onboarding with an in-app announcement stating, ““Hello! We’ve temporarily paused new sign-ups on our platform.”
A similar message greeted potential users of Palmpay, indicating a hold on new registrations with a promise to resume later.
The suspension has raised eyebrows, particularly in the context of recent worries about the use of fintech platforms by cryptocurrency traders to potentially destabilize the forex market.
Observers have also noted that commercial banks may have a more robust regulatory rapport than their fintech counterparts, possibly affecting the enforcement of regulations.
As of now, there has been no formal communication from the regulatory bodies concerning the specifics of the directive.
