If you decide that a microfinance bank is for you, then you need one with a good reputation, and that is fully licensed in Nigeria. However, even with the license, not all of them are reliable. In this review, we will scrutinize Eyowo for you to know if it is a scam or legit. Eyowo has had licensing issues in the past, so you need this review.
Eyowo is owned by Eyowo Microfinance Bank Limited. Currently, it is a licensed Microfinance Bank (MFB) by the CBN (Central Bank of Nigeria). Its physical address is Ground Floor, Mannah House, 19 Araromi Street, Victoria Island, Lagos. The website of this loan app is eyowo.com.
Eyowo App Review: Legit or a Scam?
Eyowo’s MFB license has been restored by the CBN. This bank is also NDIC (Nigeria Deposit Insurance Corporation) insured up to 2 million naira but it’s not yet available on the database. This is verifiable here.
The experience with this bank is a mixed bag, but it particularly shifts towards ‘unreliability’ due to its recent license revocation. On 22 May 2023, the CBN revoked the license of 47 Microfinance Banks, which included Eyowo. Please see the document here (note that it is a PDF download).
According to the CBN, the banks with revoked licenses “either remained inactive, insolvent, failed to render returns, closed shop, or ceased to carry on the type of banking business for which they were licensed for more than six (6) months in contravention of the Banks and other Financial Institutions Act (BOFIA), 2020 and the Revised Regulatory and Supervisory Guidelines for Microfinance Banks in Nigeria”.
After the revocation, we recorded complaints such as customers not being able to log into their account for many months, or being able to withdraw their funds. A lot of users labeled Eyowo a scam after the experience. But Eyowo isn’t a scam, except that it can sometimes be unreliable.
Eyowo’s MFB license has been reinstated by CBN as an ‘approval in principle’. It’s a good thing that customers will now be able to access their money. Hopefully, this MFB is back and better. Eyowo also made a post on X saying, “Eyowo appreciates your patience and we look forward to giving you total access to everything you need in the coming days.”
Now, on to the user experience narrative.
It isn’t perfect MFB. It has its own problems, which may be unique to some users. For example, you may experience an Eyowo problem of not being able to transfer out funds and might think saving money here will get stuck. The explanation here is that it could be due to industry-wide downtime on the service at the time of your attempt. You should also expect some common bugs using this bank, for example, transaction delays, and the app may not automatically reverse a transfer. This means you have to contact customer support.
Unfortunately, making complaints isn’t as convenient due to Eyowo’s poor customer support. The customer support is not very responsive, but definitely not the worst in the industry. We’ve seen lots of MFBs that barely respond. Eyowo will at least get back to you, even though it may take time.
The summary of this app is that while you can instantly add money to your Eyowo account, you may sometimes likely face issues instantly withdrawing your money, which Eyowo attributes a possible cause to industry-wide downtime on service.
How Does Eyowo App Work?
This bank majorly does the following:
- Open a bank account
- Make payments
- Bank with an Eyowo card
- Eyowo for savings
Below are all 4 features explained.
Open a bank account
You don’t need a unique number as an account number. Eyowo uses your phone number as an account number without the first zero (0) in your phone number. This is a feature similar to what you find on Opay. Otherwise, nothing else is revolutionary about the experience. You can also open and manage multiple bank accounts in the same you would with any other bank.
Make payments
Eyowo allows you to make bank transfers to other accounts. If the person you are sending money to does not have an account yet, you can send it to their phone number. Eyowo will then notify the person to create an account with that number and access the money. Eyowo’s money transfer experience isn’t always smooth, though.
Bank with an Eyowo card
Like any bank, you can apply for a card. This card doesn’t contain some of the information you typically find on other debit cards. Instead, Eyowo stores them on your app. So, you can flaunt your card and not worry about anyone seeing your personal card details – that doesn’t mean you should do so anyway.
Eyowo for savings
If you like saving money, then Eyowo supports that too. You can use its fixed savings or top up regularly to increase your savings amount.
How to Use Eyowo
- Install Eyowo app from the Google Play Store
- Sign up with your phone number (must be linked to your BVN)
- Verify your phone number
- Enter your personal information, including your date of birth and name
- Take a selfie for face verification
- Create your passcode
- Tap on ‘Submit’ to enable your account
Pros and Cons
Pros
For a bank whose license has been restored by the CBN, that’s already an advantage.
- Eyowo is licensed by the CBN but its license was previously revoked
- NDIC insured
- Available on Google Play Store for Android only
Cons
- Has a history of license revocation by the CBN
- Transactions are typically not instant
- Not available on the Apple App Store
Is Eyowo Safe?
This app is safe, and its CBN license has been restored. However, the NDIC has yet to list Eyowo on its publicly available list of approved institutions.
As for your data, Eyowo collects information, including your name, home address, email address, BVN, NIN, phone number, selfie photo, etc. They also collect device information including your IP address, device name, location information, etc. Currently, there are no customer data abuse reports on Eyowo. The license revocation document by the CBN isn’t specific about Eyowo’s offense, but Eyowo was delisted possibly for being inactive, insolvent, failing to render returns, closed shop, or ceasing to carry on the type of banking business they were licensed for.
Verdict
Not the worst microfinance bank in Nigeria but its license revocation history certainly questions whether Eyowo can ever become a reliable microfinance bank. or not. This Eyowo app is recommended because its license has been restored by the CBN and is protected by the NDIC. So, Eyowo gets a 3 out of 5 for being licensed in Nigeria and having a history of its being license revoked. As for user experience, it is unique to each individual. The Eyowo app can be inconsistent and not perfect.
Read Also: Bankly Digital Bank – But Is It Licensed?