Kuda celebrates five years of financial innovation in Nigeria

In celebration of its fifth anniversary, Kuda reiterates its commitment to improving Nigeria’s fintech landscape. Since its launch in 2019, Kuda has pioneered several initiatives that address long-standing challenges in the Nigerian banking sector.

Shortly after Kuda began operations in Nigeria, the fintech company introduced free transfers, which reportedly saves each customer up to 15,000 naira annually. After the monthly allocation of 25 free transfers runs out, Kuda’s fixed fee of 10 naira per transfer remains the lowest in the country. This move was made in response to the high transfer fees that have long burdened Nigerian bank customers.

To enhance the reliability of financial services, Kuda developed its own core banking application, Nerve. This in-house development marked a significant departure from the reliance on third-party core banking apps, which can be prone to outages and other reliability issues. Nerve’s introduction has enabled Kuda to maintain a more consistent and dependable service for users.

Recognising the need to improve the saving culture in Nigeria, Kuda launched its Spend+Save feature, which allows customers to automatically save a part of their spending. According to the Central Bank of Nigeria (CBN), the country’s savings rate has historically been low, with many Nigerians struggling to set aside funds regularly. As of June 2024, Nigeria’s savings deposit rate stood at 6.67% as seen in the CBN’s money market indicators. Kuda’s Spend+Save feature addresses this issue by making saving automatic and effortless.

Kuda popularised the Pay With Bank option on local websites and apps that facilitate secure cardless payments by making it easy for its customers to generate a Pay ID for such payments. This innovation supports the CBN’s cashless policy by offering customers digital payment options, including transfers, Pay ID, and USSD payments.

Kuda has also made progress in the credit sector through its overdraft feature that allows customers to access funds above their account balance at a daily interest rate of 0.3%, which accrues after the first 24 hours. Overdraft amounts are tailored to each customer based on their credit history and account usage. The National Bureau of Statistics (NBS) estimates that 70% of bank account holders in Nigeria lack access to loans. Kuda’s overdraft feature aims to provide a flexible solution to this problem.

Reflecting on the fifth-year milestone, Babs Ogundeyi, Group CEO of Kuda Technologies, said “Over the past five years, we have focused on solving real problems faced by Nigerian bank customers. From reducing transaction costs to making saving easier and improving access to credit, our innovations are designed to make banking more accessible and efficient for everyone.”

As Kuda celebrates its fifth anniversary, it is committed to driving financial inclusion and innovation in Nigeria. With a user base of about 7 million and a series of impactful initiatives, Kuda continues to play a significant role in shaping the future of banking in the country.