Kuda to Resume Account Opening as CBN lifts Restriction

Kayode Tokede 

Kuda Microfinance Bank has announced that it will resume new account opening as it has met the Central Bank of Nigeria’s (CBN) regulatory requirements.

Recently, 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 Managing Director of Kuda Microfinance Bank, Musty Mustapha.

He added, “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.”