Kuda, a Nigerian challenger bank, has launched in the UK as part of its major global expansion efforts.
Through this launch, Kuda will help thousands of UK-based Nigerians combat high remittance costs on large transfers. Kuda stated these fees average at 8%, which is significantly higher than the UN Sustainable Development Goal target of 3%.
Kuda’s mission is to provide all Africans globally access to friction-free and affordable financial services, connecting the diaspora with Africa and increasing financial inclusion.
The Kuda app will be available on iOS, Android and the web. It will initially offer UK-to-Nigeria remittance and plans to expand the service to other African countries, as well as new features.
Remittance accounts for around 1% of Nigeria’s total GDP. However, the UK to Nigeria payment rail has been unreliable and has high fees.
Kuda is entering the UK market charging a flat fee of £3 with a transfer limit of £10,000. It added that with over £3bn sent from the UK to Nigeria each year, it hopes to save UK Nigerians millions of pounds.
Kuda operates as a distributor of Modulr, enabling it to offer a mobile wallet, virtual and physical cards, local transfers and direct debits.
Commenting on the UK launch, Kuda CEO and co-founder Babs Ogundeyi said, “Africans in the UK are faced with barrier after barrier when it comes to financial services – from challenges setting up accounts to prohibitive and inconsistent fees on meaningful transfers. They are forced to limit each transfer to a few hundred pounds to avoid losing money or face escalating exchange rates with bigger transfers.
“Technology means the world is getting smaller but the incredible transformation in financial services hasn’t been inclusive. Kuda is changing that – initially for Nigerians, then all Africans in the UK and across the globe.”
The Nigerian challenger bank has raised a total of $90m in investment capital. Last year, the company raised $55m in its Series B round, which valued the company at $500m.
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