Kuda Microfinance Bank has announced plans to open additional experience centres across Nigeria, following its upgrade to a National Microfinance Bank by the Central Bank of Nigeria (CBN).
The new licence removes the geographic limitations attached to Kuda’s former unit microfinance bank status, which restricted its physical operations despite its nationwide digital reach. With the national licence, the fintech is now expected to establish a broader physical presence, offering customers more opportunities for in-person support and community engagement.
Kuda said the planned experience centres will complement its digital-first banking model, providing physical touchpoints for customer service, dispute resolution and engagement where needed.
“Securing a national microfinance banking licence is an important step for us as a regulated institution,” said Kuda’s Managing Director and Chief Executive Officer, Musty Mustapha, noting that the approval allows the bank to serve customers nationwide more flexibly.
The licence upgrade aligns with the CBN’s broader effort to bring fast-growing fintechs under regulatory frameworks that reflect the scale of their operations. In recent years, digital banks such as Kuda, Moniepoint and OPay have recorded rapid growth, particularly among informal-sector customers who often require access to physical service points.
However, the shift to a national licence also comes with higher operating and compliance demands. National MFBs are required to maintain physical branches, meet stricter disclosure standards and publish audited financial statements in national newspapers. Capital requirements also rise sharply, with the minimum paid-up capital increasing from ₦200 million for unit MFBs to ₦5 billion for national operators.
Kuda raised $20 million in funding in 2024 at a reported valuation of $500 million, positioning it to meet the higher capital threshold. The fintech said it will continue to prioritise digital services such as transfers, payments, savings and instant credit, while rolling out physical locations subject to regulatory approval.
“While we remain digital at our core, this licence gives us the flexibility to create physical touchpoints where customers prefer face-to-face support,” Mustapha said.
In the first quarter of 2025, Kuda processed more than 300 million transactions valued at ₦14.3 trillion across its retail and business banking platforms. The bank also issued ₦16.4 billion in overdrafts during the period, representing a 43 percent increase from the previous quarter.
Kuda noted that all new experience centres will be opened in line with CBN approvals, warning that unauthorised branch operations attract regulatory penalties.
Source: Techcabal