Connect with us


Wema Bank targets fraudulent activities as it suspends seven fintech partners

Nigeria’s financial technology (fintech) sector is a vibrant landscape, teeming with innovation and disruption. From mobile money solutions to digital lending platforms, fintech is revolutionizing the way Nigerians access and manage their finances. However, this rapid growth comes with a hidden threat: fraud.


Financial crime has emerged as a significant challenge for the Nigerian fintech industry. According to a report by the Nigerian Electronic Fraud Forum (NeFF), fraud losses within the Nigerian banking sector reached a staggering ₦18.9 billion ($51.8 million) in the first half of 2023 alone. This paints a concerning picture of the vulnerability of financial institutions, particularly those partnering with less-established fintech firms, to cybercrime.

In this context, Wema Bank, a leading Nigerian commercial bank, has taken a bold step to address the issue of fraud within its fintech partnerships. This article delves into Wema Bank’s recent actions, their implications for the broader Nigerian fintech ecosystem, and the path forward for a safer financial future.

Wema Bank Cracks Down on Fraudulent Actors:

Wema Bank’s decisive action serves as a wake-up call for the entire Nigerian fintech sector. The bank identified a concerning rise in fraudulent inflows into wallet accounts managed by some of its fintech partners who utilize the bank’s third-party wallet system. In response, Wema Bank launched a thorough investigation, leading to the removal of three fintech partners confirmed to be engaged in fraudulent activity. An additional four fintech partnerships were suspended pending further investigation and improvement of their security protocols.


This move by Wema Bank, resulting in the loss of up to seven fintech partners, highlights the bank’s commitment to protecting its customers and fostering a secure financial ecosystem. The reported loss of ₦685 million (~$595,000) due to fraud and forgery in 2023 underscores the financial impact of such criminal activity. Wema Bank’s actions demonstrate that prioritizing customer safety is paramount, even if it means severing partnerships that may have brought short-term gains.

Building a Secure Fintech Ecosystem: Collaboration is Key

Wema Bank’s efforts extend beyond simply removing problematic partners. The bank emphasizes the importance of building responsible partnerships within the fintech space. This includes ensuring all partners adhere to the Central Bank of Nigeria’s (CBN) Know-Your-Customer (KYC) guidelines, which are crucial for establishing trust and transparency within the financial ecosystem. Wema Bank’s ongoing audits and reviews of its remaining fintech partners demonstrate their commitment to regulatory compliance.

However, Wema Bank recognizes that tackling financial crime requires a collective effort. Oluwole Esomojumi, Chief Audit Executive at Wema Bank, emphasizes the need for collaboration: “We are steps ahead on our end… We are committed to rooting them out [fraudsters].” This statement underscores the importance of industry-wide collaboration between financial institutions, regulators, and fintech partners. By working together, they can establish stricter compliance measures, share best practices for fraud detection, and create a more secure environment for all stakeholders.


A Glimpse of Hope: Fintech Growth Despite Challenges

Despite the crackdown on fraudulent activity, there’s a positive takeaway. Nigeria’s e-payment transactions continue to surge. According to the Nigeria Inter-Bank Settlement Systems (NIBSS), electronic transactions witnessed an 89% increase in Q1 2024, reaching a staggering ₦234 trillion. This highlights the continued potential and resilience of Nigeria’s fintech landscape. The growth in mobile money transactions by operators like OPay and PalmPay further reinforces this point.

Wema Bank’s actions set a positive precedent for a safer and more reliable financial future in Nigeria. Continuous adaptation of security measures, ongoing collaboration between stakeholders, and a commitment to customer education will be crucial in the fight against financial crime. By tackling fraud head-on, Wema Bank paves the way for a more secure and prosperous fintech ecosystem in Nigeria, ultimately benefiting both financial institutions and the customers they serve.

The path forward requires not just vigilance from individual players, but a concerted effort from the entire industry to create a robust and secure environment where innovation can continue to flourish. As the Nigerian fintech sector navigates the challenges of fraud, Wema Bank’s actions serve as a roadmap for a more secure and prosperous future.

Facebook Comments

TAGiAfrica™ is a Web3 Magazine that is documenting the African journey in the crypto and blockchain industry for over a decade. We are the Pan-African magazine that covers business, technology, Blockchain, Crypto and Innovation.We are the essential resource for anyone who wants to stay up-to-date on the latest trends in Africa. The magazine is also a valuable resource for businesses that are looking to expand into Africa and committed to promoting African entrepreneurship and innovation.

Advertisement Build your website!


Watch Our Channel



Blockchain4 days ago

FG Re-Arraigns Binance on Tax Evasion Charges

The Federal Government of Nigeria has re-arraigned the cryptocurrency exchange platform Binance on charges of tax evasion. This move is...

Featured4 days ago

“Chatter App Is Live,” Davido Jubilates as He Launches His Own Social Media Platform

Nigerian superstar Davido has officially launched his own social media platform, Chatter, marking a significant milestone in his career and...

How to Startup5 days ago

i’SUPPLY Raises Pre-Series A Funding Round, Securing $2.5 Million to Expand Tech-Enabled Pharmaceutical Distribution Platform

i’SUPPLY, a leading Egyptian startup specializing in tech-enabled pharmaceutical distribution, has successfully closed a pre-Series A funding round, bringing its...

APPLY NOW5 days ago

Open Startup Launches OST Programme to Accelerate African Startup Ecosystem

Open Startup (OST) is proud to announce the launch of the OST Programme, a groundbreaking initiative developed in collaboration with...

APPLY NOW7 days ago

10k2Startup Invites African Startups to Apply for Funding and Strategic Support

10k2Startup, an innovative initiative founded by Julius Nkansah Owusu-Kyerematen, head of multi-channel mid-market skills at Google, announces the launch of...

IN THE NEWS1 week ago

Telecom Egypt and 4iG Group Join Forces to Build Egypt’s Future-Proof Fibre Network

Telecom Egypt and Hungarian IT solutions provider 4iG Group are embarking on a transformative joint venture to construct a state-of-the-art...

How to Startup1 week ago

Nala Raises $40 Million to Expand Beyond Remittances, Become Africa’s Cross-Border Payments Leader

Nala, a remittance startup rapidly evolving into a comprehensive payments platform, has secured a massive $40 million equity investment in...

IN THE NEWS1 week ago

Botswana Launches First Satellite BOTSAT-1 Set for Launch in 2025

Botswana is taking a giant leap into the cosmos with the development of its first-ever satellite, BOTSAT-1. This ambitious project,...

Crypto1 week ago

Nigeria plans Indigenous Blockchain “Nigerium” for Data Sovereignty and Security

Nigeria is taking a significant step towards data security and national sovereignty with the proposed development of its own blockchain,...

IN THE NEWS3 weeks ago

Flutterwave Streamlines Workforce: 30 Employees Let Go Amidst Strategic Shift

In a move that has sent ripples through the African fintech industry, Flutterwave, the continent’s leading payments technology company, has...

IN THE NEWS3 weeks ago

Andela Unveils Code Playback Feature, Revolutionizing Tech Recruitment in Africa

Andela, a renowned platform connecting businesses with top-tier remote software developers across Africa, has taken a significant step forward in...

IN THE NEWS3 weeks ago

Nigeria Content Creators Set to Gather at the Content Con Lagos

Nigeria Content Creators Set to Gather at the Content Con Lagos. Get ready for the most anticipated event in the...

East Africa1 month ago

Bolt and Uber Threaten Kenya Exit Over Proposed Taxes

[Bolt and Uber] Kenya’s vibrant ride-hailing scene, a symbol of the nation’s burgeoning digital economy, is facing a potential downpour....

East Africa1 month ago

Rwanda: Going Digital with its own Currency in 2026

Rwanda, a nation renowned for its breathtaking landscapes and remarkable resurgence after a devastating conflict, is now setting its sights...

East Africa1 month ago

Kofa Powers Up: E-Motorcycle Expansion to Kenya and Togo

Ghanaian startup Kofa, a pioneer in battery network solutions, is set to expand its innovative battery swapping solution to Kenya...

IN THE NEWS1 month ago

Seamfix Expands: Digital ID Revolution Coming to 5 More African Countries

Nigerian digital identity startup Seamfix is set to expand its operations to Ghana, Kenya, South Africa, Ethiopia, and Uganda following...

IN THE NEWS1 month ago

Kimberly-Clark Wraps Up Nigerian Exit After Layoffs

Huggies diaper maker Kimberly-Clark is swiftly shutting down its Nigerian operations following its exit announcement last week. Nearly 90% of...

IN THE NEWS1 month ago

Copia Global Sacks 1000 Employees and Restructuring

Kenyan e-commerce startup Copia Global, despite laying off over 1,000 employees this week, remains determined to stay afloat. The company...

IN THE NEWS1 month ago

Bolt Introduces Bidding System for Drivers and Riders in Nigeria

Bolt, a ride-hailing company offering services in over 45 countries, including Nigeria, has shaken things up in the Nigerian market...


Africa Africa
East Africa2 months ago

Breaking Free from Waste: Africa’s Fight for a Sustainable Future Through Minimalism

In today’s fast-paced world, the concepts of minimalism and sustainable living have emerged as powerful antidotes to consumerism and environmental...

Blockchain2 months ago


The key to overcoming the challenges in logistics and supply chain management (SCM) operations in Africa lies in standardizing indigenous...

Editorial2 months ago

Top 10 Lucrative African Tech Sectors to Invest in 2024

Africa has been experiencing a rapid growth in technology in recent years, with many opportunities for investors in the tech...

Artificial Intelligence3 months ago

Llama 3: Meta’s AI Assistant Gallops into Africa, Bringing Connection and Controversy

Meta, formerly known as Facebook, is a tech giant synonymous with social connection. Boasting over 3 billion monthly active users...

Editorial3 months ago


Investors have multiple strategies at their disposal to construct and broaden their portfolios, aiming for financial success. One emerging trend...

Editorial3 months ago


Financial literacy entails grasping and proficiently applying a range of financial competencies, such as managing personal finances, crafting budgets, and...

Editorial3 months ago

Investing in a Volatile Market: Strategies for Success in 2024

In today’s world, investing in a volatile market can be a daunting task. With geopolitical tensions simmering, economic uncertainties looming,...

Editorial3 months ago


Education is a fundamental entitlement for all individuals, irrespective of their situation or origin. However, in Nigeria, the endeavor to...

Editorial3 months ago

Pandemics: A Looming Shadow – Have We Learned Enough Since the Last Crisis?(2024 Updated)

The specter of pandemics has haunted humanity for millennia. From the bubonic plague’s merciless scythe that ravaged Europe in the...

health health
Editorial3 months ago

Empowering Your Health: A Guide to Thriving in the Digital Age (2024 Update)

The digital age has ushered in a revolution in how we access information, and the realm of nutrition and health...