UBA Sends Message to Customers as CBN Gives Order on Dormant, Inactive Accounts

• A major update on dormant and inactive accounts has been issued out to customers by United Bank for Africa
• The bank in a statement differentiated between dormant or inactive accounts and how customers can avoid
• This came after the CBN recently voiced concerns regarding idle bank accounts' vulnerability to fraud across the country

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

United Bank for Africa (UBA) has sent out a significant update about dormant and inactive accounts for its many customers.

UBA informed customers in a message delivered on Wednesday that savings accounts that had not been utilized for a predetermined amount of time would henceforth be categorized as dormant or inactive.

Recall that Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), has expressed worry about the susceptibility of inactive bank accounts to fraudulent activity.

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He clarified that accounts that are left idle for long periods of time are frequently easy targets for identity theft and unauthorised access by scammers.

He said:

“With respect to dormant accounts, what I found personally is that if you leave accounts dormant in banks, they are sometimes more susceptible to fraudsters copying your identity and trying to gain hold of the system to grab your money. So, that is a problem I think most banks face.

“The policy and the directive are meant to ensure that all those monies come to the Central Bank for safekeeping and it is at zero cost to the beneficiaries. All that will happen is that the Central Bank will manage the money within our possession and when the rightful owner surfaces, the money is returned plus whatever income has accrued.”

UBA clarifies inactive, dormant accounts

According to UBA, in a statement to customers, accounts that have not had any transactions for six months will be classified as inactive; if this inactivity persists, the accounts will become dormant after a year.

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“However, there was good news. Customers could keep their accounts active by making a transaction on the UBA Mobile Banking App, Internet Banking, Leo, *919#, or by visiting any UBA branch,” the bank said.

Customers were reassured by the bank that their money was safe and secure and that all it took to maintain an account was a transaction.

UBA announces 40% growth in gross earnings

Legit.ng reported that for the first half (H1) of 2024, the United Bank for Africa (UBA) reports a 39.6% increase in gross earnings.

UBA stated that its gross earnings climbed from N981.77 billion in 2023 to N1.37 trillion by June 2024 in a statement released on Monday, discussing its audited financial performance for the half year ended June 30, 2024.

The bank claimed this accomplishment. despite Nigeria's challenging macroeconomic conditions and the geopolitical environment in which it works.

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Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng