Nigeria’s leading fintech company, Opay, has reassured its customers of the security of their finances stating that the Nigeria Deposit Insurance Corporation, NDIC, now insures up to five million naira of each customer’s deposit on the mobile money service.
Opay’s Managing Director/Chief Executive Officer of NDIC, Mr Bello Hassan gave the reassurance yesterday during a press conference in Lagos when he stated that the company was not only committed to financial security but that the development also aligns its resolve with the standards enjoyed by depositors of other commercial banks in the country.
According the fintech’s CEO, “the revised coverage is a strategic balance between protecting depositors and ensuring the stability of the financial system. These changes aim to extend protection to a larger percentage of the population, enhance financial inclusion, and mitigate the potentially destabilising effects of bank runs.”
Hassan, while emphasising that Opay’s comprehensive financial infrastructure and the latest development with NDIC was essential for maintaining depositor confidence and ensuring the stability of the financial system, noted that the enhanced coverage was underpinned by solid financial backing from the NDIC’s deposit insurance funds, anticipated premium collections and robust supervision and bank resolution frameworks as outlined in the NDIC Act No. 33 of 2023.
According to him, “this strategic enhancement not only aims to protect depositors but also encourages market discipline among banks and MMOs. By increasing the insured amount, the NDIC seeks to prevent unnecessary risk-taking by financial institutions, thereby reducing the potential for destabilising bank runs.”
He added that the company’s “alignment with the NDIC’s revised insurance coverage standards underscores its dedication to safeguarding user funds and promoting financial stability. With this new level of insurance, OPay users can now have the same confidence in the security of their deposits as customers of other commercial banks. This move contributes significantly to a more inclusive and resilient financial ecosystem in Nigeria.”
OPay, licensed by the CBN and insured by the NDIC with the same insurance coverage as other commercial banks, was established in 2018 to make financial services more inclusive through technology.
The fintech offers a wide range of payment services, including money transfer, bill payment, airtime and data purchase, card service and merchant payments, among others.
Recall that the NDIC had in May, announced an increase in the maximum deposit insurance coverage from N500,000 to N5,000,000 per subscriber of a mobile money operator, providing a substantial safety net for OPay users and ensuring their funds are protected to a much greater extent.
It is hoped that with the increase, Opay users would be less bothered depositing higher amounts of money in their Opay wallets unlike when most users had doubts as to whether it was secure enough.
Many Nigerians had fears that someday, the platform might just crash and all their finances would be lost as has been witnessed with some Ponzi schemes and a number of other supposed fintech companies that never lasted long enough after early adopters began to build trust in the brand.
Opay however, seems to be changing the narrative and providing fast and reliable services to customers.
