The increasing value of electronic payment transactions in Q1 2023 has put the spotlight on Nigeria’s financial system, especially as bad actors continue to exploit gaps in the system. Financial institutions in Nigeria have suffered N159 billion in losses due to fraud since 2020, emphasizing the need for a collaborative effort by all parties in the financial services sector to tackle these challenges.
Tosin Eniolorunda,group CEO, Moniepoint Inc,stressed on this during a courtesy visit to Nneka Onyeali-Ikpe,Fidelity Bank’s CEO, while commending the bank’s understanding during its banking channel integration, which led to service disruptions and Moniepoint customers being unable to receive funds.
Fidelity Bank had recently informed its customers and the public that interbank transfers to all licensed financial institutions in the country were available again, following reports that the bank had restricted transactions with neo banks. The bank clarified that this was not the case.
During the discussion about the growth of digital payments and the sector’s contributions to Nigeria’s development,Eniolorunda, emphasised the importance of customer KYC and the company’s commitment to compliance.
“KYC is not merely an acronym but indeed a cornerstone in establishing trust, ensuring security, and complying with regulatory standards. All accounts created on our platform have BVN verification and in addition to this we perform a liveliness check at the point of onboarding. This is a comparison of the account holder’s life picture and the BVN image as a way to reduce impersonation,” Eniolorunda said.
Moniepoint’s CEO stated that the company has zero tolerance for fraud and uses robust fraud detection systems and technologies to analyse patterns, identify anomalies, and detect suspicious activities on its platforms. This, he explained, enables the company to identify and act on potential fraud incidents.
As partners in deepening the CBN’s mandate of ensuring provision of adequate and convenient financial services to consumers and guaranteeing their protection as well as the various undercurrents in the financial services industry, Moniepoint and Fidelity agreed to work closely together to develop a tightly knit mechanism to stem the menace of fraudulent transactions and collaboratively push through in addressing payment challenges in the country.