Following the launch of ALAT in 2017 by Wema bank, the banking industry has witnessed the launch of a digital bank every year.
This year alone, two Digital banks were introduced. Sparkle kicked off last month and only four months ago, VFD Microfinance Bank announced the launch of its digital banking app, V.
In 2019, Rubies Digital Bank was launched by QuCoon – a fintech and consulting firm. Eyowo, which had been a two-year mobile money service, was also relaunched as a digital bank.
Likewise, Kudimoney, an online savings and lending site, rebranded into Kuda Bank in 2018 after they obtained a microfinance banking license from the central bank of Nigeria.
And because Kuda bank was launched without any affiliations with a brick-and-mortar bank or an established organization, many fintech enthusiasts argue that it is indeed the first digital bank in Nigeria.
How Is Kuda Bank Different From The Rest?
There are a lot of fintech companies and about half a dozen digital banks presently operating in Nigeria. Kuda bank however particularly stands out from the list. While many fintech companies might only operate online, Kudabank is an actual bank. Not a wallet, not a payments company, a full-fledged microfinance bank operating with a license.
This means among many other operations, they are allowed to accept deposits from customers and also connect directly to the central bank of Nigeria. Thus, they clearly have a competitive edge over other regular fintech companies.
How Is Kuda Keeping Pace With Fintech Evolution?
Recently, KudaBank launched a new product ‘Kuda for Web’ which enables users to see their money like never before.
This latest feature displays user-friendly graphs and charts into specific time-frames and transaction categories giving customers a detailed view of their finances beyond merely withdrawals and deposits. With this, customers can concisely understand their finances and budget more efficiently.
The company explained that the enhanced offering is a natural complement to Kuda’s suite of free banking services which include;
- Zero card maintenance fees,
- Free transfers,
- Automatic savings,
- No minimum balance,
- 15% annual interest, and
- Absolutely no burden of bank charges.
All the above are in tandem with Kuda’s purpose to provide affordable banking to the underbanked.
Previously, access to Kuda’s full banking services was available exclusively through its apps for Android phones and the iPhone. The launch of Kuda for Web allows users to access their accounts across a wider range of devices. Kuda for Web is compatible with all web browsers and contains all the features customers are used to having on their Kuda smartphone app.
10 frequently asked Questions and Answers about Kuda Bank
In a low trust society like ours, physical structures mean permanence, and this unfortunately is what digital banks lack. Unlike in the traditional banks where you can simply walk into the banking hall when you have issues, digital banks automate most of their operations. So they don’t have any need to open branches in every major city. This seems to bit of a disadvantage though. Because no matter how efficient the services, the average Nigerian is still skeptical about doing business with such banks, and expectedly so.
So we took our time to find answers to some of the questions people have been asking about Kuda bank.
Is Kuda a registered bank?
Yes, kuda bank is licensed by the Central Bank of Nigeria with registration number RC 796975.
What makes Kuda different from other banks?
Kuda has no branches (because they don’t need branches). Kuda runs entirely on your phone (with an internet connection) and the bank can deliver your debit card to any address in Nigeria.
Because Kuda bank doesn’t bear the extra cost of running many offices, the bank saves its running cost which it uses, in turn, to pay more interest to customers. This is also why their charges are relatively low compared to traditional banks.
What fees do kuda bank charge?
The E-banking app offers 25 free transfers every month if you sign up with your Bank Verification Number (BVN).
Without your BVN, you’ll get 2 free transfers every month.
For evert extra transfer, you will be billed 10 naira each.
Everything else is free – using your account, using your Kuda Card, and withdrawing cash from our partner ATMs.
So how does kuda bank make money?
Like regular banks, kuda bank makes profit by using collective deposits to make risk-free investments backed by the government. The bank also raises money from service fees sellers pay when transactions are carried out with the Kuda Card. Kuda bank also hopes to start making profits from interest paid on loans in the future.
Who is eligible to have a Kuda account?
To sign up for a basic account, you must be a Nigerian who has turned 18 and has an email address and a phone number.
How do can one register a Kuda account?
Download the Kuda app on the App Store or Google Play and follow the prompts on your phone. It will take a few minutes at most.
What kind of account will I get?
If you sign up with your name and phone number, you’ll get a basic account limited to a maximum balance of 300,000 naira, a maximum deposit of 50,000 naira at a time, and a maximum transfer of 20,000 naira at a time.
If you add your Bank Verification Number (BVN) and a government-issued ID (like your driver’s license, national ID card or international passport) to your Kuda profile, your account will be upgraded to a full account without those limits.
How safe is Kuda bank?
Kuda makes use of high-security encryption similar to the one used by the best banks in the world to secure all of her accounts and transactions.
For extra protection, the bank also insures every deposit you make into your Kuda account. If all banks are wiped out by a natural disaster or something, the Deposit Insurance Fund of the National Deposit Insurance Commission (NDIC) is required to pay you 200,000 naira as compensation.
How many ATMs does Kuda bank have?
Kuda bank has an existing partnership with Access Bank. Kuda bank customers can withdraw cash free of charge at over 3,000 Access Bank and Access Diamond Bank ATMs in Nigeria.
How will I put money into my Kuda account?
- You can transfer money to your Kuda account from any Nigerian bank with a bank app or through internet banking.
- You can also add money to your upgraded account with most debit or credit cards.
- Tap Add Money on the Kuda app and choose the Add By Card option.
- Adding money to your account by card is free up to a total of 100,000 naira.
- If you have cash, you can deposit it into your Kuda account at Kuda’s partner banks.
Where’s Kuda bank’s office?
Kuda bank is located on the first floor of Moorehouse, 151, Herbert Macaulay Way, Yaba, Lagos. Note however that visits are by appointment only.