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.
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.
