Is Moniepoint approved by CBN?
The Nigeria Fintech industry has grown massive over the years with new players steadily coming into the picture. Among these, recently, Moniepoint has been a choice name among many businesses as a digital payment platform for handling their Point of Sale services to their customers. But just like every other emerging digital payment platform, it is always critical to look at its legitimacy before trusting it as the channel for the thousands and millions of naira flowing into your business.
Nigerians have seen the rise and fall of many digital payment platforms. Some of these falls are not exactly falls, but rather the disappearance of scamming schemes disguised as a digital payment platform. This is why the approval of the Central Bank of Nigeria is very important to avoid falling victim to scammers.
The Central Bank of Nigeria (CBN) has a crucial role in overseeing and regulating financial institutions and payment service providers within the country. As a way of enforcing the financial laws of the country and protecting the rights of the citizens, it is a requirement for any company that offers financial services to obtain the required approvals and licenses from the CBN to operate lawfully. In the absence of this, operations will be deemed illegal.
Founded in the year 2015, Moniepoint has grown to be one of the strongest distribution networks for financial services in Nigeria.
With over 120 million transactions processed monthly, the fintech giants have expanded to a whole new level of offering banking services to businesses. Moniepoint Microfinance Bank was launched to offer business banking services for small and medium-sized businesses, as well as personal banking. However, running a financial service/payment processing platform and running a bank are two different things. Running a bank requires a license from the Central Bank of Nigeria. While Moniepoint already has a switching license issued since 2019, do they have the CBN approval to operate a bank?
Moniepoint is approved by CBN to offer banking services, having received a banking license from the CBN in 2022. It is among the top list of digital banks and operates the largest distribution network for financial services in Nigeria powering the majority of the POS terminals spread across the country.
What this approval means is that all regulatory requirements regarding the Nigerian financial regulations have been met by Moniepoint and all their operations are well within the nation’s financial framework. So you will not be breaking any financial laws by doing business with them or be afraid of losing your money through illegal channels.
Is Moniepoint insured by NDIC?
Another thing you need to worry about before using Moniepoint is the security of your funds. We have witnessed the failure and closure of some banks in Nigeria in the past years. And without proper policies in place, your deposits might be lost.
Moniepoint is currently licensed and regulated by the CBN and is fully insured by NDIC as well, so your funds are safely insured in the event of a failure. Before operating as a microfinance bank, there was no need for NDIC insurance as Moniepoint was not yet a banking entity but rather partnered with existing banks in providing its financial services. But now that the fintech giant is running as a microfinance bank, NDIC insurance is very important.
The Nigeria Deposit Insurance Corporation (NDIC) is responsible for insuring deposits in Nigerian banks and financial institutions by ensuring that depositors’ funds are protected in the event of bank failure. It achieves this by providing insurance coverage for eligible deposits up to a specified limit, which is currently set at 500,000 Nigerian Naira per depositor per bank. The NDIC also goes further to maintain the confidence of the public in the banking sector through other activities such as conducting risk-based examinations to assess the financial condition of insured banks and identify potential risks or vulnerabilities that could impact their stability, and enforcement of relevant laws and regulations.
While these licenses and insurance are very important, things do change. It is advised that you go through the terms and conditions whenever you are new to a platform as the above information is usually stated out.
Is Moniepoint legit?
Yes, Moniepoint is considered legitimate and safe to use. Moniepoint Microfinance Bank is regulated by the Central Bank of Nigeria (CBN), ensuring compliance with financial regulations and providing oversight to maintain the safety and security of its operations. Additionally, Moniepoint has received recognition, including an award for the most inclusive payment platform in 2022, further affirming its credibility and reliability.
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