KUDA written off with $90 million leads microfinance banks

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KUDA amortized with 90 million dollars presents itself as “the bank of the free”

By Jeph Ajobaju, Editor-in-Chief

KUDA Bank has $90 million in its vault, giving it an edge among the top 10 Microfinance Banks (MFBs) in Nigeria.

The Central Bank of Nigeria (CBN) website lists 916 licensed MFIs that provide financial services – savings, loan, domestic remittances, etc.

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They target low-income, unbanked and underserved groups such as market women and unemployed youth.

Only 64% of Nigeria’s adult population is financially included, so microfinance banks have ample fertile ground to cover and reap rich rewards.

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Ranking Metrics

Top 10 Microfinance Banks Lead the Way in Efficiency of Service Delivery, Innovation and Customer Satisfaction as Benchmarks Nairametry used to categorize them, like the list below:

1. KUDA Microfinance Bank

KUDA, the leading MFB, has taken the financial services industry by storm. It was launched in 2016 as Kudimoney, offering online-only savings and digital loans.

Since then, it has morphed into its current name, raised over $90 million, and popularized itself among young people as “the bank of the free.”

KUDA positions itself as a major microfinance bank.

New customers are signing up every day, thanks in part to its streamlined banking app that makes it easy to sign up and access a wide range of banking services.

2. LAPO Microfinance Bank

LAPO was created in the 1980s to help the poor cope with the harsh economic realities of the Structural Adjustment Program (SAP) under Ibrahim Babangida.

It has since become one of the most notable MFBs, ensuring that low-income households are economically self-sufficient by providing “responsive financial services on a sustainable basis,” as it claims on its website.

3. ACCION Microfinance Bank

ACCION has pursued a mission since its inception in 2006 to “empower micro-entrepreneurs and low-income people by providing financial services in a sustainable, ethical and cost-effective manner,” according to information on its website.

It offers different types of loans for small business, home ownership, education, etc. – up to N150,000 via ACCION mobile banking services or USSD channels.

4. Mutual Trust Microfinance Bank

Mutual Trust was founded in April 2016 when it changed its name from Mark of Rock Microfinance and changed its leadership with the aim of redefining microfinance in Nigeria.

It prides itself on providing excellent financial services with state-of-the-art technology and a highly experienced workforce.

Customers can complete their loan application in less than 10 minutes. Loan applications are analyzed and approved in 10 hours. A flexible repayment plan allows customers to easily offset their loans.

5. Microfinance Bank Assets

No discussion of the best MFBs would be complete without Asset Microfinance Bank. Although relatively new, it has positioned itself as a force to be reckoned with with unique products to empower businesses.

The Assets Microfinance website says it was set up by the CBN to provide personal, business and payday loans as well as savings and investment services.

6. Fina Trust Microfinance Bank

Fina Trust claims that it is “Nigeria’s premier microfinance bank”, which is debatable. What is not disputed, however, is one of Nigeria’s leading microfinance banks.

It was established in 2009 and is said to be affiliated with the LOLC Group, the largest non-banking business entity in Sri Lanka.

Fina Trust offers fast loans – payday advance, SME loan, education loan, financial asset financing and also offers savings, current account and term account services.

7.AB Microfinance Bank

AB Microfinance, established in 2008 with Lagos as its headquarters, describes itself as “a socially responsible bank of choice for micro and small businesses”.

Clients have access to microloans, SME loans and housing loans.

It also offers savings accounts, current accounts and fixed deposit accounts in addition to mobile banking and other related services.

8. VFD Microfinance Bank

VFD Microfinance Bank (VBank for short) is marketed and positioned as the go-to MFB for the trendy. Subsidiary of the VFD group, it was created in 2009 and started its activities in 2011.

VBank says on its website that its services are being completely revamped to offer more to customers, with a focus on digitalization. The VBank mobile app is arguably one of the most advanced and streamlined.

9. Sparkle Microfinance Bank

Uzoma Dozie, former chief executive of the defunct Diamond Bank, launched Sparkle in 2019 to democratize access to finance for small businesses and individuals.

Technology plays a huge role in its operations.

The Sparkle mobile application downloaded from Google Play Store or the iOS store provides access to a multitude of financial services.

10. BoI Microfinance Bank

BoI Microfinance, established in 2002, is a subsidiary of Bank of Industry, one of Nigeria’s oldest banks.

It offers different types of services to small and medium enterprises as well as low income people to encourage entrepreneurship through easy loans.

BoI also provides savings deposit. The financial support of the Bank of Industry positions it well to serve customers.

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