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By Chinenye Anuforo
The recent regulations implemented by the Central Bank of Nigeria (CBN) are intended to improve and solidify the operations of financial technology (fintech) banks in the country, according to Chika Nwosu, Managing Director of PalmPay Nigeria. He made these remarks during a recent television interview.
CBN had issued a series of regulations in the past aimed at strengthening the fintech banking sector. These regulations include a temporary suspension of new customer onboarding by fintech banks and a mandate for all financial institutions to collect national identification cards before creating financial accounts. Additionally, the Nigerian Inter-Bank Settlement System (NIBSS) previously directed banks and mobile money operators to delist any unlicensed fintech platforms from directly accepting customer deposits.
Currently, no fintech platform has fulfilled all the requirements outlined by the regulators, resulting in a pause on customer onboarding across the entire ecosystem.
While discussing regulatory considerations within the fintech space, Nwosu stated, “The current regulatory actions are ultimately beneficial for the Nigerian fintech landscape. Initially, when we began operations, there were trust concerns. However, I can confidently say that trust has begun to grow, particularly in the year since the cashless policy implementation,” Nwosu said.
He emphasized PalmPay’s unwavering support for regulatory efforts within the fintech ecosystem. He clarified that the regulations aim to enhance the services provided by reputable players like PalmPay.
Nwosu acknowledged the challenges of doing business in Nigeria. However, he expressed optimism about Nigerians’ growing adoption of PalmPay’s app and digital payment solutions. He reassured customers by stating, “Every institution has its unique business strategy and infrastructure. For us, and for the majority of fintech companies, our structure prioritizes seamless transactions.”
Regarding the recent onboarding policy, he confirmed that PalmPay is in agreement with the regulators on areas requiring improvement reassuring customers that using PalmPay remains secure and stated, “Once PalmPay completes its compliance requirements, we will resume onboarding immediately.”
The MD addressed concerns about the lack of physical branches for customer service. He clarified that PalmPay has designated locations in Ikeja GRA and Opebi for in-person complaints, alongside walk-in offices across 25 Nigerian states. Additionally, customers can contact PalmPay via phone or by email at [email protected].
He reiterated that PalmPay is duly licensed by the Central Bank of Nigeria and insured by the Nigeria Deposit Insurance Corporation (NDIC). He encouraged customers to trust the brand, stating, “Our app clearly displays our CBN license and NDIC deposit insurance information. PalmPay is here for the long term.”
