Fidelity Bank has reestablished the ability to transfer funds to neobanks including OPay, Moniepoint, Palmpay, and Kuda, a few weeks after temporarily blocking these transactions due to concerns related to rising fraud and customer verification issues.
Sources within the neobanks have confirmed that Fidelity Bank has now reinstated customer transfers to these financial platforms. Approximately two weeks ago, Fidelity Bank had suspended customer transfers to these neobanks due to the escalating concerns about fraud and customer verification.
One source from the affected neobanks commented, “We have been in discussions with Fidelity, so we were aware of their plans to reinstate our services.” The decision to restore transfers follows pressure from the Nigeria Inter-Bank Settlement System (NIBSS), which expressed its disapproval of Fidelity Bank’s initial move to block transfers to these institutions.
Initially, many customers noticed that these neobanks were no longer listed as approved financial institutions within the Fidelity Bank app. Despite customer complaints, OPay denied being affected by the restrictions. A source from Moniepoint confirmed the restrictions, while Sofia Zab, Palmpay’s Chief Marketing Officer, explained that Palmpay’s removal was not due to any issues with their service but rather a necessary system upgrade on Fidelity Bank’s side.
Neobanks have gained popularity and played a crucial role in providing payment solutions, especially during a cash crunch driven by policy changes. Their ability to offer almost instant transaction speeds and lower fees has made them a preferred choice for merchants and vendors in the country, facilitating customer payments and business growth. Fidelity Bank’s decision to block transfers to these neobanks resulted in a loss of revenue from transaction fees.
