Information available on the CBN website shows that there are approximately 916 licensed microfinance banks in Nigeria. These banks provide essential financial services (such as savings, loans, domestic remittances, etc.) to low-income, unbanked and underserved groups like market women and unemployed youth.
For a highly populated country like Nigeria where only 64% of the adult population is financially included, these microfinance banks clearly have their job done well for them. Interestingly, a number of them are doing a fantastic job of serving the Nigerian public.
In this special report, we will look at the top 10 Nigerian microfinance banks that set the pace and now hold the ace. Among the criteria used to determine the top 10 MFBs are efficiency in service delivery, innovation, and customer satisfaction. See the list below:
1. KUDA Microfinance Bank
It is yet another prominent MFB that has taken the Nigerian financial services industry by storm. Also launched in 2016, the company started out as Kudimoney and offered online-only digital savings and loans. Since then, the company has morphed into KUDA, raised over $90 million, and popularized itself among young people as “the bank of the free.”
Currently, KUDA Bank is working to position itself as a major microfinance bank. And new users 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.
If you want to learn more about KUDA Bank, be sure to visit their website today. Also, be sure to check out the company’s mobile app, if you like.
2. LAPO Microfinance Bank
This microfinance bank was established in the 1980s primarily to help less privileged Nigerians cope with the harsh economic realities that followed General Ibrahim Babangida’s structural adjustment program. Since then, LAPO Microfinance has become one of the most outstanding MFBs in Nigeria, thanks to its constant efforts to ensure the economic empowerment of low-income households in Nigeria. To do this, the company provides “responsive financial services on a sustainable basis”.
You can learn more about LAPO Microfinance and its loans by visiting its website today.
3. ACCION Microfinance Bank
ACCION Microfinance Bank is very similar to LAPO in that they are both national microfinance banks. It was established in 2006 and has since made it its mission to “empower micro-entrepreneurs and low-income people by providing financial services in a sustainable, ethical and profitable way”, according to information available on its website.
The company offers different types of loans including small business loans, property loans, education loans, etc. Users can also get quick loans up to N150,000 through ACCION’s mobile banking or USSD channels.
4. Mutual Trust Microfinance Bank
Mutual Trust Microfinance Bank is one of Nigeria’s leading microfinance banks. Since April 2016 when the company changed its name from Mark to Rock Microfinance Ltd and changed management, it has embarked on a pioneering mission to redefine microfinance in Nigeria.
The company prides itself on providing excellent financial services through the use of state-of-the-art technology and, of course, its highly experienced workforce. The processes are so simple that clients can complete their loan application in less than ten minutes. Also, loan applications are analyzed and approved in ten hours. And the best part is that the company has a very flexible repayment plan that makes it easy for customers to clear their loans without stress.
If you want to learn more about Mutual Trust Microfinance Bank, visit their website today. You can also download the company’s mobile app from Google Play Store and iOS store.
5. Microfinance Bank Assets
No discussion of the best MFBs in Nigeria would be complete without mentioning Asset Microfinance Bank. Although relatively new, this microfinance bank has positioned itself as a force to be reckoned with, with its unique products designed to empower Nigerian businesses.
According to information available on its website, Assets Microfinance Bank was established by the CBN to primarily provide personal, business and payday loans to Nigerians. In addition to this, the company also provides savings and investment services.
6. Fina Trust Microfinance Bank
On its website, Fina Microfinance prides itself on being “Nigeria’s premier microfinance bank”. Whether everyone agrees or not, what is true is that this is one of the leading microfinance banks in Nigeria. Established in 2009, Fina Trust Microfinance Bank is said to be affiliated with the LOLC group, the largest non-banking entity in Sri Lanka.
Among the services provided by Fina Trust Bank are quick loans, payday advances, SME loans, education loans, financial asset financing, etc. The company also offers various types of account services including savings accounts, current accounts as well as term deposit accounts.
You can learn more about Fina Trust Microfinance Bank by visiting their website today.
7.AB Microfinance Bank
This MFB was established in 2008 and is headquartered in Lagos. On its website, the company describes itself as “a socially responsible bank of choice for micro and small businesses”. Clients have access to microloans, SME loans and housing loans.
In addition to loans, AB Microfinance Bank also offers its customers the possibility of opening savings accounts, current accounts and term accounts. More so, customers have access to mobile banking and other related banking services.
8. VFD Microfinance Bank
Just like KUDA Bank, VFD Microfinance Bank (or VBank for short) has been marketed and positioned as the go-to MFB for fashionable people. The company is a subsidiary of VFD Group which was established in 2009 and started operations in 2011.
On its website, VBank said that its style of banking was completely revamped and designed to attract more customers. There is an emphasis on digitization even though the VBank mobile app is arguably one of the most advanced and streamlined to attract more customers.
Visit the company’s website today to learn more about its services.
9. Sparkle Microfinance Bank
Launched in 2019 by former CEO of the defunct Diamond Bank Uzoma Dozie, Sparkle Microfinance said part of its mission was to democratize access to finance for small businesses and individuals.
At Sparkle Microfinance, technology plays a huge role. By downloading the Sparkle mobile app from Google Play Store or the iOS store, you will be able to access a host of financial services. Visit the company’s website to learn more.
ten. BoI Microfinance Bank
This microfinance bank is a subsidiary of Nigeria’s oldest development bank, the Bank of Industry. According to the information available on its website, the BoI Microfinance Bank offers different types of services to small and medium enterprises as well as low-income people. This is part of the company’s commitment to encouraging entrepreneurship through the provision of easy loans. Apart from loans, BoI Microfinance Bank also offers savings deposit services. The company was established in 2002. And thanks to the financial support of the Bank of Industry, it is well placed to serve customers.