Founded by Babs Ogunseyi and Musty Mustapha in 2016, Kuda Bank is Nigeria’s foremost online-only bank. It functions almost the same way as the regular banks in Nigeria do with the exception that the bank does not have any physical branch – all operations are fully online.
Valued at $500 million, Kuda Bank has been a bank of choice for over 1.4 million Nigerians because of how seamless and quick it is to use their services such as sending funds, receiving funds, paying for utility bills, and taking overdrafts, etc. In this article, our major discussion will be on how Kuda Bank work.
How Does Kuda Bank Work?
Just as it has been stated above, Kuda Bank is a virtual or online-only bank that eliminates the stress associated with accessing banking services offered by traditional banks in Nigeria. With this said, a Kuda bank user does not need to visit any physical branch anywhere to carry out a financial transaction or access any other banking service.
Kuda Bank (as Kuda Microfinance Bank) has been fully licensed by the Central Bank of Nigeria (CBN) and registered with Corporate Affairs Commission (CAC) with registration number RC 796975 to legitimately operate as an online bank. Also, Kuda bank is insured by Nigerian Deposit Insurance Commission (NDIC) – which means your money is safe and all your transactions are secure with Kuda Bank.
Kuda Bank is designed and configured for smartphone users as every transaction and other banking-related services users need to carry out is done on their smartphone with the help of the Kuda App. For you to create a Kuda Account, you will need to download the Kuda app (for Android or iOS smartphones) and sign up for a new Kuda account.
Before your account can be created, you will have to provide Kuda with accurate and precise data about you. It is only after you provide these data that Kuda will generate an account number for you.
When your new Kuda account is created, Kuda will be the manager of your bank account while you will be identified as a customer. Then just like what conventional banks in Nigeria offer, Kuda will provide additional services such as banking, savings, granting of credit facilities (overdraft), etc.
Kuda Bank offers its debit card free of charge to its customers. So as a Kuda Bank user, you can request a debit card – for free – and it will get delivered to the location you have provided. Kuda Bank grants you access to operate and manage your account via the Kuda app. This access will allow you to pay bills, make instant transfers, manage your Kuda card and also save as you spend. Kuda Bank uses the same security encryption standard employed by regular banks in Nigeria to protect your account.
Kuda leverages digital technology in offering its online banking services. It doesn’t charge a service fee. Kuda Bank’s mission, based on its motto, is to create “a bank of the free”. Kuda Bank makes its money by using customers’ collective deposits to make investments with the approval and backing of the government. Also, Kuda makes money (though little) from the commission on airtime purchases and others.
The Kuda app itself is user-friendly with its easy navigation interface and enhanced loading which results in a quicker transaction.
Requirements to Open A Kuda Bank Account
The following are the conditions you need to satisfy to be able to open a Kuda Account:
- You must be a minimum of 18 years old and a Nigerian citizen.
- Possess a smartphone(Android or iOS) that supports the latest version of the Kuda app.
- Have an active phone number and email address.
- Doesn’t have a previous account with Kuda.
- You may need to enter a referral code, you can use: EHREDWD4
Kuda offers two account opening types:
- Basic account type
- Full KYC (Premium) account type.
Basic account type
The information required for the Basic account type includes:
- Full name
- Phone number
Full KYC (Premium) account type
The information required for the full KYC or premium account type includes:
- Full name
- Phone number
- Valid means of identification (National ID Card, Permanent Voter’s Card (PVC), Driver’s License, or International Passport).
The advantage the Premium account type has over the Basic account type is that you won’t experience limitations on maximum single deposits and account balance. In addition, you will be allowed an unlimited daily transaction with up to #1,000,000 single transaction limit.