Have you tried using a digital bank in Nigeria? Well, I have. I tried Kuda bank. Not because of the freebies (free bank charges) that this fintech company in Nigeria offers, I tried it just because I love everything tech. So asides from regular banks I have a Carbon Account, Piggyvest, Cowrywise, Eversend, Opay, Risevest. etc
Yes, that’s too much but mind your business.
About Kuda MFB (Kuda Microfinance Bank)
Kuda bank or Kuda Microfinance is a digital bank in Nigeria. A completely reliable Online Bank, No paper, and your account can be open in minutes.
It’s meant to be a digital-only bank that runs predominantly on smartphones.
(Opinion: This potentially limits possible customer base to only people with Smartphones)
They used to be KudiMoney (LOL, Kudi is the John Smith of Fintech names)but old things are passed away.
Kuda MFB or Kuda Microfinance bank offers checking accounts with 25 free transfers to any account per month, a free debit VISA card, interest-earning savings plans and Naira virtual card, loans, and a business account on its platform.
Is Kuda Bank registered with CBN?
Yes, Kudabank is registered with the Corporate Affairs Commission (RC 796975) and licensed by the Central Bank of Nigeria (CBN) as KUd. Your deposits in Kuda are insured by the Nigeria Deposit Insurance Corporation (NDIC).
Who owns Kuda Bank? Who is Kuda CEO?
Kuda bank was founded by Babs Ogundeyi and Musty Mustapha in 2019. And currently, Kuda has raised $91.5m from investors to date.
Babs Ogundeyi is the CEO of Kuda MFB.
Is Kuda bank Legit?
KudaBank is a legit digital Microfinance bank registered in Nigeria with the CBN and NDIC.
How does kuda bank work?
Kuda bank works like a normal bank but everything is down online through the Kuda bank app or website.
Kuda bank Features:
- No ATM Maintenance fees
- No Cash withdrawal fees
- No transfer fees to Other banks * (*Kuda Customers get 25 free transfer to other banks every month. After that any transfer to other banks cost N10.)
- Free Deposits (**Kuda account holders can deposit money in over 10,000 branches across Nigeria for free.)
- Free Physical Debit card
- Naira Virtual card
- Loans of up to N2,000,000
- Kuda Business Account
Wait first: Is this even possible? How does Kuda bank make Money then?
Yes, it is possible.
Regular banks in Nigeria will usually charge you for things like when you transfer money from your bank account to another account with another bank. Kudabank doesn’t charge you as much, or at all (free 25 free transfers).
Monies kept with banks (deposits) don’t exactly just sit there, they’re used to giving out loans to those who need them and would pay later with interest. Alternatively, they are invested in/with assets that provide yields from which the actual owner of the deposit gets paid a portion as interest, or gets paid nothing out of it, depending on the class of account, whether current or savings.
Kuda makes money by technically investing the ‘retained balances’ of monies kept with them and by issuing loans. They also make money from commission on airtime purchases and from service fees sellers pay us when people like you shop with your Kuda Card. The yields/gains of the investments are used to subsidize such fees like transfer charges,
Then you wonder how it’s profitable for them, but the truth is, they’re doing practically what the regular banks are doing, but with less overhead costs, because they don’t build branches that need maintenance and which they staff with employees of different pay grades, they don’t use fleets of pool cars to move their account officers around, etc. They invest ‘more’ in technology.
Does it work? Yes, it does. But.
As lovely as the idea of a digital Nigerian bank sounds, it’s still a Nigerian bank. It’s a fantastic premise, ceteris paribus. But you know that in Nigeria everything is never “Paribus’es”.
All the things that potentially stress you out with other banks’ Online transfers are potentially here as well eg when NIBSS is down it is down for all banks.
If a Mobile Networks payment processing gateway is down then you cant buy Airtime when you want.
Essentially, the bank works but the ecosystem still has significant kinks to work out.
How about the Kuda App? Download Kuda App
The kuda app is surprisingly good. Intuitive design with a lot of attention to detail.
How do I get started with the Kudabank app? Click here to download the app
How to Open Kuda Bank Account?
What do you need to open a Kudabank Account? Don’t rush me, there are 3 tiers based on how much info you provide:
- Lite– All you need is a Name and Phone Number
- Basic– Name, Phone Number and BVN
- Premium– Name, Phone number, BVN, Valid ID
Any limits on the Premium Accounts? Yes. 250k on a Single Transfer, 1 million Max in a day, 500k on POS, and 30k single withdrawal on ATM.
You can open a Kuda bank Account by downloading the Kuda App on the Play Store or App store and following the instructions to open a Kuda account.
Kuda bank offers short-term overdraft loans at a 0.3% interest rate daily. You can access a kudaBank loan via the Kuda App
Kuda Bank USSD Code
Kuda Bank doesn’t have a USSD Code yet. However, you can transfer from other Nigerian banks to Kuda using these codes:
- You can send money from your GTBank account to a Kuda account using this USSD code: 1. Dial *737*50*amount*416#. Then type in the KudaBank account number and confirm the transfer with your GTB *737# PIN.
- You can transfer money to a KudaBank account from First Bank with this USSD Code: *894*amount*Kuda account number# from the phone number linked to the account.
- You can transfer money to KudaBank account number from Wema Bank With this USSD code Dial *945*Kuda account number*amount# from the phone number linked to the account and follow the prompts on your screen or follow the steps below.
You can add send money to your Kuda account from GTBank, Polaris Bank and Zenith Bank accounts by USSD. Just follow these steps:
- Open Your Kuda App
- Click on Add Money on your dashboard
- Then Tap Add By USSD
- Next, Type in the amount you want to send
- Finally Tap the right USSD code to dial it and follow the prompts on your screen.
To transfer or send money from Kudabank app to other banks in Nigeria follow these steps:
- Open your Kuda bank app and click “Payments“
- Then click on “Send Money“
- Fill in the details of the transfer.
- Confirm the transfer.
USSD Code for Transferring Money to Kuda bank
To transfer money to Kuda account from First Bank with USSD Code: Dial *894*amount*Kuda account number# from the phone number linked to the first bank account.
To send money from Wema Bank to Kuda Bank account with USSD code: Dial *945*Kuda account number*amount# from the phone number linked to the account and follow the instructions on your screen.
How to Send Money from GTB to Kuda Bank
To transfer money from GTBank, Polaris Bank and Zenith Bank to Kuda using USSD code, follow these steps.
- Open Kuda app or website and sign in.
- Click “Add Money“
- Tap Add “By USSD“
- Type in the amount you want to send
- Tap the right USSD code to dial it and follow the instructions.
KudaBank’s Location – where is kuda Bank Located?
Kudabank’s registered office is located at 151 Herbert Macaulay Rd, Yaba, Lagos, Nigeria.
Kuda Bank Review
KudaBank is one of the best digital banks in Nigeria today. It Offers its users savings plans of up to 15% annual interest savings rate plus a ‘Save + Spend’ feature for automatic savings. Kuda also offers 25 free bank transfers every month and a free debit VISA card alongside a free virtual Naira Card.
You can also access short-term loans on Kuda with a daily interest rate of 0.03%.
Should you open a Kuda Account? Absolutely! It’s not perfect yet but it’s a really good banking app in Nigeria
Kuda Bank Customer Care Number – Whatsapp Number
Kuda attends to customer issues through its help option in the app. But if you ever need help (or you just want to chat), you can contact Kuda via Email: firstname.lastname@example.org.
However, Kuda doesn’t have a phone number or a Whatsapp Number for customers. You can contact them though the app or through the email above.
Kuda USSD Code (Transfer code)
Kuda bank doesn’t have its own USSD code or Transfer code channel, however, you can add send money to your Kuda account from GTBank, Polaris Bank and Zenith Bank accounts by USSD. Just follow these steps:
-Open Your Kuda App
– Click on Add Money on your dashboard
– Then Tap Add By USSD
– Next, Type in the amount you want to send
– Finally, Tap the right USSD code to dial it and follow the prompts on your screen.
Kuda Bank Branches in Nigeria?
Currently, Kuda only has one bank branch which is located at 151 Herbert Macaulay Rd, Yaba, Lagos, Nigeria.