Kuda, a digital-only bank licensed by the Central Bank of Nigeria, has disclosed that it is offering 25 free interbank transfers every month for all its existing customers and everyone who opens a Kuda account before January 1, 2020.
This announcement was made by Kuda CEO Babs Ogundeyi at the bank’s first town hall meeting – a gathering of finance experts, investors and Kuda customers which held on November 1, 2019, at Radisson Blu Hotel, Ikeja.
“We discovered that most people make less than 20 transfers every month for personal use, so we decided to give everyone who opens a Kuda account this year 25 free transfers every month forever,” he said.
Ogundeyi emphasised that being exclusively digital saves the bank the heavy cost of running a network of branches, savings which are then transferred to customers in the form of free banking services.
Still in beta and only three months old, Kuda already provides full banking services through its apps for Android phones and iPhones, allowing everyday Nigerians with internet access to run a current account, save money automatically and earn up to 15% annual interest without the burden of bank charges.
By running a business model that excludes card maintenance fees, account maintenance fees, and excessive transfer fees, Kuda has set a precedent that sets it apart from other banks.
Kuda which was formerly known as Kudimoney, also provides its customers with free debit cards that are delivered at no cost nationwide, differentiating it from digital wallets.
At the same event, Kuda’s efforts to make banking affordable for Nigerians were praised by several stakeholders in the finance and tech sector including Samuel Goriola Oluyemi, the Head of Emerging Markets/IFR/Agency Management at the Nigeria Inter-Bank Settlement Scheme (NIBSS).
“[Kuda has] revolutionised banking in Nigeria. Things we never thought could be done are things you’re doing,” Mr. Oluyemi said.
The town hall meeting was supported by Microsoft Nigeria through the 4Afrika Initiative, an important partner in the bank’s mission to democratise financial services for Africans through digital technology.
Earlier this year, Kuda announced pre-seed funding of $1.6 million. The bank has since processed over 6.5 billion naira worth of transactions and saved its customers tens of millions in fees.