Located in San Francisco, California, is Mercury Bank, an online bank dedicated to providing startups with the opportunity to open accounts without actually being in the U.S and provide assistance with management on cash flow. Recently, Mercury Bank has been linked with restricting accounts belonging to some startups in Africa with no warning or prior notice. The move by Mercury Bank has raised brows amongst the Fintech community in the continent. In defence, the bank mentioned noticing unusual activities and flagged the accounts and placed them under review.
Mercury Bank, over time, has been significant to startups because they provide the platform for fundraising and engaging investors, as many investors would rather not delve into non- American companies. The bank holds over 4 billion in deposits from its users. The restrictions come with a high cost for these startups as they will be unable to achieve their financial obligations with over $3000 check fees were pending before Mercury Bank had placed the restrictions.
In a mail sent to Mecury Bank from tech founders and stakeholders, who have enquired on the issue and stated the need to resolve the issue as quickly as possible. In response, CEO Immad Akhund representing Mecury Bank has emphasized its commitment towards resolving the problem and hopefully, the bank will remove the restrictions. The current events will most likely inspire Africa's Fintech society to create its financial system and build reputable imagery that would gain investors' trust around the world.
