Neobanks and digital banks, without a doubt, have revolutionised the banking industry and forced most commercial banks in Nigeria to evolve. From the widespread use of Opay by individuals and small business owners during the COVID-19 lockdown in 2019/2020 to the mass adoption of Moniepoint POS by businesses, these Fintechs captured a market the FUGAZ of the industry took for granted.
Gone are the days of a transfer that might not get credited to the recipient’s account until after 24 hours or more, and there is nothing you can do about it; you may need to wait up to 7 days or more before such issues are rectified; God help you if the ATM fails to dispense or you try withdrawing from Aunty Bose Venture’s POS and the transaction failed while you were debited. Well, those are history, as these Fintechs resolve such issues faster and without stressing you to visit any of their physical branch.
While I like all of these and more about these digital banks, there is an elephant in the room that many are not addressing. By default, most of these digital banks, notably Opay, Moniepoint, Paga, Palmpay, and Fairmoney, use your Phone Number As Your Bank Account Number (PNABAN), with only the first “0” removed to make up the standard 10-digit NUBAN. For context, Nigerian phone numbers are 11-digit, with the fourth digit unique to the network provider; there are exceptions. For instance, MTN numbers usually have the fourth digit as either 3, 6, or 0. For example, a user with the phone number 08030000000 who registered on Opay or Paga will have a default account number, thus: 8030000000.
In all honesty, this is a great idea because people typically already have their phone numbers memorised, so it is easy for them to remember their account number; but here is my concern and why I believe it should be optional and not de facto. There are people I might want to transact with but do not want or intend to have any other relationship with. With the exchange of my account number, they only need to add “0”, and voilà, they have my phone number.
Likewise, anyone I do not have a personal relationship with can easily reverse search my full and legal name by typing my phone number into any bank app; and remember, it is very easy to track all your socials when armed with your legal name. A lot of people use their legal name as their Facebook name, LinkedIn, and Instagram; there might be slight variations for X (formerly Twitter). This is too much privacy handed over to strangers, all thanks to Paga and their WhatsApp group members.
In case you are thinking you can opt out of the PNABAN, well, I have news for you: it is impossible; at least I can confirm for Paga. When I linked my PayPal to Paga to be able to receive USD payment, I raised a complaint with Paga customer service and was told: “the phone number registered on your account also serves as an alternate account number by design and is an integral part of how the Paga system operates. As such, it cannot be deactivated while the account remains active. To ensure that funds are sent to your preferred account identifier, we kindly advise that you always provide your unique Paga account number whenever you wish to receive funds. We hope this clarifies.”
Nigerian Fintechs, Phone Number As Bank Account Number (PNABAN) Should Be Optional, Not Default. I have more than three commercial bank accounts with my phone number linked, but none forced me to use my phone number as my account number. Let people who prefer the ease of remembering their account number by virtue of already memorising the phone number opt for the option, and allow others to opt out.
T for Thanks.
Disclaimer
The information in this article is the personal experience of the writer and not a standardised review, which may include tests conducted by professionals and authorised institutions.
This article is for informational purposes only and should not be substituted for product recommendations, endorsements, or otherwise. Always do your personal research and conduct appropriate due diligence before committing to any service or product.
Also, the details shared and experiences are from the time the writer experienced them. Real-time experience may now differ, as some reviewed organisations, agencies, companies, products, or services may have improved or declined after these experiences.
