Fidelity Bank rejects NDPC's fine, claims compliance with data protection laws

Fidelity Bank has contested a recent fine of N555.8 million imposed by the Nigerian Data Protection Commission, NDPC, which alleges violations of data privacy laws.

The Divisional Head of Brand and Communications, Fidelity Bank, Meksley Nwagboh, in a statement signed on Wednesday, said the bank “conducted itself to the highest ethical standards by ensuring full compliance with extant laws on data protection”.

On Wednesday, NDPC said it imposed an N555.8 million fine on Fidelity Bank for allegedly violating data privacy laws.

The NDPC’s National Commissioner, Vincent Olatunji, indicated that the fine was a result of the bank’s arrogance, which he claimed led to the decision to impose the full penalty.

Fidelity Bank reacting in a statement explained that an account opening request was submitted online but remained inactive due to incomplete documentation. 

The bank emphasized that they "carried out due diligence by immediately blocking the account and subsequently closing it when outstanding documents were not provided."

On April 30, 2023, Fidelity Bank received a notice from the NDPC regarding a complaint that an account had been opened without the complainant’s consent. 

The bank conducted an internal investigation and found that the account was not operational as the required documentation, including a passport photograph and BVN, was not provided.

"Accounts created online without full documentation are not allowed to be operational and are closed after 30 days if the outstanding documents are not provided," the bank noted. 

They added that the account was placed on ‘Post No Debit’ status and ultimately closed when the documents were not submitted within the specified period.

Fidelity Bank reiterated its stance in a letter to the NDPC on May 2, 2023, arguing that there was no data breach and that the account opening process was never completed. 

Despite presenting evidence and explanations during a pre-action meeting with the NDPC on July 7, 2023, the bank was still subjected to a fine.

On December 5, 2023, the NDPC demanded a remedial fee of N250 million, which Fidelity Bank contested. 

The situation escalated when the NDPC subsequently increased the demand to N555.8 million on August 20, 2024.