HomeBusinessWhy Nigerian Banks Ask for Proof of Address

Why Nigerian Banks Ask for Proof of Address

Best Freelancers to help you Grow your Business

Major fintechs, particularly Kuda, have been in the news recently for their address verification campaigns – basically asking their customers to upload their proof of address so that their address can be verified by verification agents.

Reactions have been, well, varied, but if you’re one of the people wondering why Nigerian banks ask for proof of address when you’re opening an account or trying to make bigger transactions with your account, here’s what you need to know:

1. Following the Rules

All banks (yes, all of them) in Nigeria have to follow the Central Bank of Nigeria’s regulations to make sure that bank accounts are not being used for illegal things like money laundering or funding terrorism.

By asking for your proof of address, your bank can confirm that you are who you say you are and keep everything legit.

2. Managing Risks

Your bank needs to know a bit about you to figure out if there’s any risk in doing business with you. Knowing where you live helps them understand your background and the kind of transactions you might be doing. This way, they can keep an eye out for anything fishy.

3. Stopping Fraud

Nobody likes fraud, right? By verifying your address, your bank can make sure that no one is pretending to be you. This helps protect you from identity theft and other scams. Seriously, it’s for your benefit.

4. Keeping Records Straight

Your bank needs to keep accurate records of customers. It’s the law. This includes your name, date of birth, and where you live. Having your current address helps them keep everything up-to-date and correct.

- Advertisement -Protect and Monitor your Kids

5. Sending You Things

Sometimes, very rarely, your bank might need to send you important things physically. For example, some bank customers ask for a physical copy of their bank statement to be sent to their address.

Having your correct address makes sure that whatever it is that needs to be sent gets to you.

So, if your bank asks for your proof of address, know that it’s all about keeping things safe, legal, and running smoothly. It’s just part of the process to make sure everyone is who they say they are.

Related Topics

Find the Best Freelancers
NaijaTechGuide may receive financial compensation for products/services purchased through affiliate links on this site. See full Affiliate Disclosure Here
NaijaTechGuide Team
NaijaTechGuide Team
NaijaTechGuide Team is made up of Experienced Tech Enthusiasts and Professionals led my Paschal Okafor, a graduate of Electrical and Electronics Engineering with over 17 years of Experience writing about Technology. Some of us were writing about Mobile Phones before the first Android Phones and iPhones were launched.

NaijaTechGuide Offers

Best WordPress Hosting
Find the Best Freelancers

More like this

Zenith Bank Unveils Zenith Tech Fair 4.0, Features Global IT Practitioners

The Fourth Edition of the Zenith Tech Fair, tagged “Future Forward 4.0: Embedded Finance,...

The Comprehensive Review of the Best Stock Market Education Firms

In an era where financial literacy is paramount, mastering the stock market stands as...

The Future of Investment Education: Trends and Innovations

Investment education has undergone significant transformation over the decades. Historically, investment knowledge was passed...