How Kuda Bank aims to change the banking ecosystem in emerging markets

Kuda Bank is contributing to the change of the “status quo” in Nigeria’s banking sector by giving consumers the “accessible, affordable, and rewarding” financial services they deserve.

Based in Nigeria, Kuda is the country’s only digital bank with a standalone banking license. The platform is designed for smartphones to give consumers the ability to quickly and easily monitor budgets, spending and saving.

Earlier in the month, the challenger bank closed its $1.6m pre-seed investment as it prepares to launch out from its beta test later in the year.

At the same time as the funding close, Kuda received its banking license from the Nigerian Central Bank. Kuda CEO and co-founder Babs Ogundeyi said, “We want to be the go-to digital bank in emerging markets. However, our immediate focus is our launch country, Nigeria.”

The challenger bank was founded in 2017 with the aim of giving everyone the financial freedom they deserve. It has established a new kind of bank which “empowers” its members, de-emphasises fees, prioritises great customer service and helps make managing money easy, affordable and accessible.

He added, “Nigeria arguably has the largest unbanked and underserved population in the world, with 37% of the population still unbanked and an even higher percentage of consumers are underbanked.

“The biggest pain point for most African banking consumers has been the high cost of banking, and  our no-fee, mobile-only banking strategy is well placed to provide the genuine alternative choice, consumers are seeking. Our mission is to bring financial freedom to everyone and we look to provide access to financial products designed for underserved groups, informal earners, SMEs and women.”

As Nigeria’s only digital bank with a standalone banking license, it gives Kuda an advantage in making banking more available and accessible.

The FinTech feels it gives consumers a better alternative to traditional banking. Customers can access the same products services they would at their traditional bank, but at a quicker rate.

Kuda’s licence also means it can control the entire customer experience, making it more efficient and optimised. All deposits are insured by the Nigerian Deposit Insurance Corporation.

Ogundeyi concluded, “Kuda is contributing to a change in the status quo. It is no longer business as usual. African consumers deserve to have financial services that are accessible, affordable, and rewarding.”

Copyright © 2019 FinTech Global

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