The Clash Between Nigeria’s Banks & Fintech Upstarts Over Fraud Continues To Escalate
- Wema Bank suspends fintech partners from its payment gateway platform to combat fraud.
- Reported losses to fraud in the fintech industry amount to NGN 685 M in 2023.
- Legacy banks have encountered fraud issues with digital challengers, including restrictions on fund transfers and fraud attacks.
The clash between traditional banks and fintech startups in Nigeria's fintech landscape is a significant issue that needs urgent attention. The suspension of fintech partners by Wema Bank highlights the pervasive nature of fraud in the industry and the need for stronger anti-fraud measures. Collaboration and information-sharing initiatives like Project Radar are crucial for addressing these challenges and preventing reputational damage and potential isolation from the global financial system.
