10 Nigerian CBN-licensed digital microfinance banks


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10 Nigerian CBN-licensed digital microfinance banks
Posted on: March 31, 2023, 05:37:41 AM
Nigeria is joining the ranks of countries where digital banking is rising. Due to their low fees, ease of use, and speedy online transactions, digital banks are gaining in popularity. They pose a threat to more conventional banks because of the technology savvy of their employees and the high quality of the services they offer.

They may have a smaller selection than conventional banks but may provide more specialised services that clients find more useful.

Although their service offerings are similar, it would be easy to classify these digital banks as fintech. They all operate under distinct types of licences issued by the Central Bank of Nigeria (CBN). Fintechs encompass various businesses in Nigeria, including mobile money providers, payment service banks (PSBs), financing firms, and microfinance institutions.

Microfinance banking licences are the norm rather than the exception for Nigeria's most widely used digital banks, which offer their services to customers via mobile applications.

As of March 2023, the CBN database reveals that more than 894 businesses have been licenced as microfinance banks. Nevertheless, only some of these businesses can be classified as digital banks due to their lack of infrastructure. Below are the top 10 best digital banks that have microloan licences from the CBN:

1. Moniepoint

Microfinance bank Moniepoint (formerly TeamApt) provides digital financial services and is regulated by the Central Bank of Nigeria. The firm claims it was started to make everyone financially secure and happy. Last year, in addition to the microfinance license, the CBN granted the business a Switch and Processor licence.

2. Sofri

Sofri is a digital bank that was released in April 2022. It is backed by Links Microfinance Bank and has a banking licence from the Central Bank of Nigeria (CBN). It's a one-stop shop for all your banking needs, with deposits, loans, and investments available right from your phone. Eventually, Sofri would like to expand into a microfinance bank on a nationwide scale. The app has been helping Nigerians adapt to the cashless policy by delivering a lottery draw promotion campaign and is well-praised for its speedy transactions.

3. Mint

Finex Microfinance Bank Ltd. offers Mint, a virtual bank authorised by the CBN. It provides several financial tools, such as checking and savings accounts, low-interest loans, and an individual budgeting dashboard. The savings accounts provide users with goal-based savings plans that may reward them with up to 36.5% interest, while the checking accounts have no maintenance or transaction fees.

4. Carbon

In addition to standard e-banking services like debit cards, Carbon is a CBN-authorized digital bank that offers a lending facility and investment options. Carbon accounts can be used for person-to-person (P2P) payments, bill payments, and cellphone recharges. A microfinance institution, too.

Also read: How to get Carbon SME Business Loan up to 10 Million

5. Kuda

Kuda is a Microfinance banking operator which is valued at US$500 million, and have been approved by the Central Bank of Nigeria (CBN). Kuda's London location doesn't stop it from concentrating on the Nigerian market. The Kuda account features a debit card, spending limits, money transfers, and savings. Moreover, monthly maintenance costs have been eliminated, and customers are given a detailed list of free transfer options.

6. Sparkle

Sparkle is a microfinance digital bank authorised by the CBN. It was founded in 2019 with the goal of providing Nigerians with easier access to high-quality solutions for their professional and personal problems. The bank takes great satisfaction in its ability to help its customers in many ways than just banking.

7. Piggyvest

Piggyvest operates under a Central Bank of the Nigeria microfinance bank licence and is backed by the Nigeria Deposit Insurance Corporation (NDIC). PiggyVest is a service that helps people save money and make investments. The organisation provides low- to medium-risk main and secondary investment opportunities and fixed and flexible, goal-oriented, automated savings plans.

8. Eyowo

Eyowo is a CBN-approved digital microfinance bank that consolidates your banking needs, like bill payment, direct deposit, and savings. The bank promotes financial inclusion by making its services available to any Nigerian with a phone number.

9. FairMoney

Lending is the main emphasis of FairMoney, a digital bank. As a microfinance bank, the CBN has also approved the firm. Instantaneous loans of up to one million naira are made available, together with a checking account and a debit card. The organisation claims that it handles over 10,000 loans every day, with a loan being dispersed every eight seconds.

Also read: Fairmoney Loan App review | how to get quick loan in seconds

10. VFD

The financial services provided by VFD Microfinance Bank are quick, safe, and state-of-the-art since they are delivered via a streamlined digital and mobile platform. The bank's mission is to assist its clients in realising their goals and overcoming their temporary financial difficulties by providing them with low-interest loans and high-yield savings accounts.

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