Financial technology company, Kudimoney has received a Microfinance banking licence from the Central Bank of Nigeria (CBN) and has announced plans to change its name to Kuda in order to strongly differentiate its brand.
Kuda’s launch is timely to address the excess bank charges that have become a constant source of worry for Nigerian bank customers.
Last year, the Central Bank of Nigeria recovered over N65 billion as illegal charges wrongfully deducted from customers’ deposits and other transactions within the banking system, Kuda said in a statement, insisting it will challenge this too-often accepted norm and offer fuss-free, free banking to Nigerian millennials. Co-founders, Babs Ogundeyi and Musty Omotosho, both fintech and banking industry veterans, set up digital bank Kuda to offer frustrated consumers a more mobile, modern approach to traditional banking. Unlike traditional banks, Kuda does not rely on banking fees, doesn’t profit from members’ misfortune or mistakes, and actually helps members get ahead financially. Kuda members receive a debit card, a Spending and savings account, and an app that keeps them in control of their finances at all times, no matter where they are located.
“We are excited to usher in a new era in consumer banking and serve the many Africans, who we believe are frustrated with traditional banks. We will launch a new kind of bank with a continued focus on improving our members’ financial lives rather than trying to burden them with hidden fees and excessive charges” co-founder and CEO of Kuda, Babs Ogundeyi, said.
According to him, the banking license means Kuda could offer current accounts as well as debit cards, something it was already doing with a small group of alpha users. The bank is now in a pre-launch phase for the next couple of months. The rollout will initially consist of a few thousand cards, supported by a waitlist in preparation for a wider launch in the third quarter of 2019, Ogundeyi said.