By Chinwendu Obienyi
Kuda Microfinance Bank has announced that it will resume new account openings this week as it has met the Central Bank of Nigeria’s (CBN) regulatory requirements.
On April 29, 2024, Kuda, along with three other fintech companies, was directed by the CBN to halt onboarding new customers until specific conditions were met.
The suspension was part of a broader initiative by the CBN to enhance the Know Your Customer (KYC) processes across the financial sector. The December 2023 directive required all financial institutions to ensure valid identification for all types of accounts, strengthening measures that were initially relaxed to promote financial inclusion.
Kuda has made significant strides in meeting the CBN’s mandates. The bank has updated its account tiers, which now include Tier 1, Tier 2, and Tier 3. To open a Tier 3 account, customers are now required to provide a Bank Verification Number (BVN), National Identity Number (NIN), and proof of address, which will undergo verification. This process not only ensures compliance with regulatory standards but also enhances the security and protection of customers’ accounts.
We are pleased to announce that Kuda will resume the opening of new accounts this week,” said Musty Mustapha, Managing Director of Kuda Microfinance Bank. “We have worked diligently to meet the CBN’s requirements, ensuring that our customers’ data is secure and their accounts are protected from fraudulent activities. The verification of addresses for Tier 3 accounts is a critical step in this process, providing an additional layer of security for our customers.”
Kuda’s commitment to regulatory compliance and customer security reflects its ongoing dedication to providing a safe and inclusive banking experience to its customers.
As Kuda resumes new account openings, the bank encourages existing customers to upload proof of address so that their address can be verified while potential customers will need a BVN, NIN and a proof of address (which will be verified) to open a Tier 3 account.
