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.
Kuda offers checking accounts with no monthly fees, a free debit card, consumer savings plans and loans on its platform
In this Article
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). Your deposits in Kuda bank are insured by the Nigeria Deposit Insurance Corporation (NDIC).
Who owns Kuda bank? Who is Kuda bank CEO?
Kuda bank was founded by Babs Ogundeyi and Musty Mustapha in 2019. And currently, the company has raised $91.5m from investors to date.
Babs Ogundeyi is the CEO of Kuda bank.
What is Kuda bank all about? Is Kuda bank Legit and Reliable? What type of a bank is Kuda?
It’s 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 bank or Kuda Microfinance Bank is a legit digital Microfinance bank registered in Nigeria.
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 offers:
- 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.)
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 bank 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, 30k single withdrawal on ATM. Limits don’t matter because of NO CHARGES!!
How to transfer money from kuda bank to other banks?
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 Kudabank 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.
To transfer money from GTBank, Polaris Bank and Zenith Bank to Kuda Bank 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.
Where is kuda bank’s location?
Kudabank’s registered office is located at 151 Herbert Macaulay Rd, Yaba, Lagos, Nigeria.
Kuda bank Customer care / Contact number
Kuda bank 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: [email protected]
However, Kuda doesn’t have a phone number for customers. You can contact them though the app or through the email above.
Should you open an Account?
Absolutely! It’s not perfect but it’s really good.
Open a Kuda bank account here>>
