Several prominent fintech companies have responded to recent regulatory measures by bolstering their compliance and fraud monitoring teams through strategic talent acquisitions from both commercial banks and other fintech firms.
For instance, Moniepoint has recently expanded its transaction monitoring team by hiring five new members, including individuals with extensive experience from OPay and Flutterwave. Similarly, Kuda, OPay, and Palmpay have also made significant additions to their compliance and fraud teams.
These moves mark a shift in the industry’s approach towards compliance, moving away from a previous focus on rapid growth at the expense of stringent regulatory adherence. The Central Bank of Nigeria’s stricter guidelines have compelled fintech companies to prioritize compliance and enhance their risk management practices.
Regulators have imposed conditions such as stricter KYC requirements and limitations on certain transactions as prerequisites for lifting the ban on new account onboarding by fintech companies.
The increased emphasis on compliance is not only aimed at satisfying regulatory requirements but also at addressing concerns around fraudulent activities facilitated by lax KYC measures in the fintech sector.
By strengthening their compliance teams, fintech companies aim to not only meet regulatory standards but also to instill investor confidence and mitigate fraud risks within the industry.
While the recent surge in compliance hiring reflects a positive step towards regulatory alignment, the effectiveness of these measures in combating fraud remains to be seen in the Nigerian fintech landscape.