Kuda a digital-only bank based in Nigeria has secured a $1.6 million in pre-seed funding. Kuda intends to use the funds to launch live in the fourth quarter of 2019 from its beta stage. It also intends to develop the tech of its banking platform and to support its developer team across Lagos and Cape Town.
Founded in 2016 initially as a lending platform named Kudimoney before rebranding to Kuda, the platform is an online-only retail bank licensed by the Central Bank of Nigeria. Kuda offers checking accounts with no monthly fees and a free debit card. It will soon offer consumer savings and P2P payments options to users.
According to Kuda bank founder Babs Ogundeyi, “Kuda is the first digital-only bank in Nigeria with a standalone license. We’re not a mobile wallet or simply a mobile app piggybacking on an existing bank.”
He noted that the bank built its full-stack banking software from scratch. In essence, they can accept deposits and also connect directly to the switch. The switch is a SWIFT-like system that enables bank communication and settlements.
Ogundeyi also noted that customers can open a bank account in minutes, after filling in the KYC form in the app. Kuda intends to expand in the future.
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