Banking in the 21st century keeps getting interesting with newer innovations. The new norm is banking the digital way. Financial transactions are done these days right from mobile devices. You can open an account and even credit it in a matter of minutes.
In Nigeria, fintech startup companies are being developed with the sole purpose of easing the banking experience. With services that come with their apps, digital banking just got convenient.
One way these digital banking outfits differ from the traditional banking system is in how they charge for their services. To keep a growing customer base, most of the fintech startups have little or no additional cost or charges attached to their services. Of course, knowing that you won’t get debited for making financial transactions will only make you favour digital banks more.
This blog post gives you detailed information about Kuda bank. We offer you an exposition on all you need to know about this digital bank and the services it offers. At the end of the read, you should know how this bank functions and how you can benefit from its features. Hop in and let’s go!
Kuda Bank – The Bank of the Free
“KudiMoney” was its original brand name before the bank got rebranded. A rebranding was done after the fintech company obtained a microfinance banking license from the Central Bank of Nigeria.
Kuda bank is one of those fintech services that operate on zero charges on every transaction. Of course, you need a smartphone to use the service, which is available on both Android and iOS. Yes, that right, Kuda turns your phone to your bank. This bank saves you the stress of the traditional methods of filling forms and queuing.
Kuda bank comes fully licensed by the central bank of Nigeria. It is recognized by authority as a fully digital bank that runs on an app and not only a mobile wallet for only savings and investment. Kuda bank does more.
Unlike other traditional banks, as a customer, you can open an account, send money to other bank outfits, deposit money, save money, pay bills, purchase airtime and data. Kuda bank makes it for you to monitor your spending as you get an invoice for all your credits and debits.
Earlier this year, Kuda bank raised $1.6 million in seed investments. This fund enabled them to move from the beta testing stage to being a full-fletched company. In support and participation in the investment rounds were local and foreign investors. Kuda bank has indeed set out to revolutionize the banking sector in Nigeria.
The Vision of the Founders
The bank held its first town hall meeting on November 1, 2019. The meeting was hosted at the prestigious Radisson Blu Hotel in Ikeja, Lagos. It was a gathering of the bank’s customers, investors and financial experts. The Chief executive officer and co-founder of Kuda bank, Babs Ogundeyi, talked about the goals of the digital bank in detail. He didn’t fail to mention that the bank was designed to go fully digital, saving them the heavy cost of operating a network of banks scattered all over the country. Mr. Ogundeyi also made the announcement that the bank offers a lifetime offer of free interbank transfers. Every month the users of the platform get 25 free interbank transfers.
Kuda bank’s efforts to make digital banking available to Nigerians were praised by several notable stakeholders present at the town hall meeting. In attendance was Samuel Goriola Oluyemi, Head of Emerging Markets/IFR/Agency Management at the Nigeria Inter-Bank Settlement Scheme (NIBSS); Wale Olokodana, Business Group Director, Cloud & Enterprise at Microsoft Nigeria; Chidinma Iwueke, a partner at Nigerian venture capital firm Microtraction and the Deputy MD of eTranzact- Hakeem Adeniji Adele.
Microsoft Nigeria through the 4Afrika Initiative is in total support of the objectives of Kuda bank. They stand as an important partner in the bank’s goals to democratize financial services through digital technology for the benefit of Nigerians. Also present at the town hall meeting, the global technology giant’s reassured the management of Kuda bank of its commitment to this mission.
What Kuda Bank Offers
The operation of this digital bank came with lots of praise from existing users. Prospective users also have high expectations for their banking experience. This is expected due to Kuda’s deviation from the norm of operating a traditional bank. Below are the services the digital bank offers its customers.
With no physical branch, Kuda bank operates on a mobile-first basis. This implies that all transactions are done on your mobile device. This is however possible because Nigeria is largely a mobile dominated market. A report by Statista in 2018 stated that 49.4 million Nigerians owned internet-enabled mobile devices. The figure is projected to stand at 76.3 million in 2023. No one loves the stress it takes to perform transactions at traditional banks and are rather embracing this innovation.
- Free Debit Cards and Transfers
Kuda bank gives you a debit card for free. Your card gets available 1-2 weeks after you might have opened an account. From your phone, you request your card and it gets delivered to you free of charges and in any part of the country. The maximum amount you can transfer at a go is N250, 000 and your maximum transfer limit in 24 hours is 1 Million for an upgraded account. The debit cards can be used across all ATM outlets in the country.
- Seamless Opening of Account
All you need is a good internet connection to get yourself an account with Kuda bank. In less than 10 minutes, you can open a bank account. Customers get to do all the bank documentations and registrations on the application at no cost attached.
- Next-to-zero Bank Charges
With a system that leverages a selling point of no SMS charges, card maintenance fees, account maintenance fees, and transfer fees, Kuda sets a precedence for other traditional banks. Traditional banks are known for excessive charges that are used to cater for operational costs of running a bank and staff salaries. But Kuda, having no branch saves this cost to the benefit of its customers, lessening the financial burden.
At the moment, Kuda bank users enjoy 25 free interbank transfers every month. Withdrawals are free on the platform. Kuda bank zero charges policy has been predicted to save its customers approximately 1,312.5 naira per month and 15,250 annually. This is the equivalent of what customers are likely to get charged if they perform about 25 transfers per month.
- Customer Service
Kuda bank runs a 24 hour round the clock customer service. This gives you the opportunity to make inquiries and get swift responses to questions on the app. but rest assured, you won’t come across much hassle while using the app. But if you do, you will be swiftly attended to.
- Additional Account Benefits
Kuda bank comes with a ‘savings’ feature. This feature enables you to save a preset amount of money whenever you make a withdrawal. Asides saving money automatically, you also earn up to 15% annual interest on your fund without the burden of bank charges. As a security policy and measure on Kuda bank, in-app screenshots are disabled.
Getting started on Kuda Bank
To get enrolled as a Kuda bank customer, simply go to your app store and download the app. Once the app is downloaded, launch it. At the point of registration you following information will be required from you:
- Bank Verification Number
- Phone number
- Email Address and Photograph (For Identity Verification)
- Residential Address
Other basic information will be needed as well. Upon completion of registration, you will get your account number and you can begin transacting on the platform. Upon opening an account, you will then have the opportunity to upgrade your account. To get this done, you will need to provide a government-issued means of identification. All of these activities are done from the comfort of your mobile device anywhere and at any time. Happy banking!
To Wrap it up!
Fintech companies are not totally independent of traditional banks. A relatable instance is the requirement of BVN to open an account. As it stands, this implies that you will have to visit a physical bank outlet to obtain your BVN to proceed on the digital platform. Nonetheless, digital banking is fast gaining ground in Nigeria. This success is no doubt attributable to the country’s internet savvy population and love for mobile devices. Fintech startups are positively changing the narrative in the financial sector of the country.