Is Kuda Bank Legit or Scam: Should I save my Money there?

Have you ever tried to make a transaction with a digital bank in Nigeria? Well, I’ve done it. Kuda Microfinance bank was my first choice.

I didn’t try it because of the freebies (free bank charges) that this fintech company in Nigeria offers; instead, I did it because I enjoy all things technologically advanced. So, in addition to traditional banks, I have a Carbon Account, Piggyvest, Cowrywise, Eversend, Opay, Risevest, and other such services.

Yes, that is excessive, but please mind your own business.

On its platform, Kuda provides checking accounts with no monthly fees, consumer savings plans, loans to its customers, debit cards like other banks though not free, among other things.

In this post, I will share with you all you need to know about Kuda Microfinance bank and also answers some common questions which people ask concerning the bank.

Is Kuda Bank a registered member of the Central Bank of Nigeria?

Yes, Kudabank is registered with the Corporate Affairs Commission (RC 796975) and has been granted a license by the Central Bank of Nigeria to conduct business in Nigeria (CBN). The Nigeria Deposit Insurance Corporation (NDIC) insures your deposits at Kuda Bank (NDIC).

Who is the owner of Kuda Bank? Who is the CEO of Kuda Bank?

Babs Ogundeyi is the president and chief executive officer of Kuda Microfinance Bank.

When was Kuda Micro finance Bank launched?

Kuda Microfinance bank was launched in 2019, created by Babs Ogundeyi and Musty Mustapha. Furthermore, the company has raised a total of $91.5 million from investors to date.

What is the Kuda bank All about?

Is Kuda Bank a legitimate and dependable institution? Kuda is classified as a type of bank.

Kuda bank is a digital bank that operates in Nigeria. A completely dependable online bank, with no need for paper, and the ability to start an account in minutes.

It is intended to be a digital-only bank that operates mostly through mobile devices.

(In my opinion, this could potentially limit the prospective consumer base to only those who own smartphones.)

Kuda bank was formerly known as KudiMoney (LOL, Kudi is the John Smith of Fintech names), but those were the days when things were simpler.

Kuda bank, also known as Kuda Microfinance Bank, is a legitimate digital Microfinance institution based in Nigeria. It was established in 2009.

What is the operation of the Kuda Bank?

Kuda bank operates in the same way as a normal bank, except that everything is done online through the Kuda bank app or website.

The following services are provided by Kuda Bank:

  • There are no ATM maintenance fees.
  • There are no cash withdrawal costs.
  • There are no transfer fees to other banks. Kuda customers receive 25 free transfers to other financial institutions per month. After that, all transfers to other financial institutions will cost N10.)
  • Deposits are completely free (Kuda account users can deposit money in over 10,000 branches across Nigeria without incurring any fees.)

What other benefits do I get as Kuda Bank Customer?

  • Kuda bank users have an option of obtaining overdraft.
  • They have an operation on the bank app which helps them open a fixed deposit account. It is not a a fixed deposit account independent of the main Kuda bank account. It is just a functionality included on the bank app which helps a user to save without being able to withdraw till the day he has set to do so.
  • You also have an option to save certain amount of percentage.
  • It is a perfect bank for students

What about the Virtual card or physical ATM Card

Kuda bank debit/credit card is not free. You need to pay the sum of 1,000 Naira to get a copy of it.

The card is classified into physical and virtual card and you can use both to shop globally.

How do do you get a Kuda bank ATM Card?

  • First, go to your Kudabank app
  • Click on “Card”
  • Select the kind of card you want, either naira virtual card or physical card
  • Make your order by filling the online form with the correct details.

Note: You need to have up to 1,000 naira in your account before you make your order. Also note that delivery of card is free. No delivery charges applied.

First and foremost, is this even possible? So, how does Kuda Bank make money, exactly?

Yes, this is a possibility.

In Nigeria, regular banks would typically charge you for services such as money transfers from one bank account to another bank account with a different bank. Kudabank does not charge you as much as other banks, if at all (free 25 free transfers).

Money maintained in banks (deposits) isn’t just sitting around doing nothing; it’s utilized to make loans to those who need them and are willing to pay back the money later with interest.

Instead, they are placed in/with assets that generate returns from which the actual owner of the deposit receives a portion as interest, or receives nothing at all, depending on the type of account, whether it is a current or savings account.

Kuda makes money by technically investing the ‘retained balances‘ of money that has been maintained with them and by giving loans to individuals and corporations.

They also make money from commissions on airtime transactions and from service fees that sellers pay us when users like you use your Kuda Card to make purchases at participating merchants. The yields/gains from the investments are used to cover fees such as transfer charges and brokerage fees.

Then you wonder how they’re able to make a profit, but the truth is that they’re doing virtually the same thing as traditional banks, but with significantly lower overhead costs, because they don’t build branches that require maintenance and are staffed with employees of varying pay grades, they don’t use fleets of pool cars to transport account officers around, and so on. They make ‘increased’ investments in technology.

Is it effective? Yes, it is correct.

Even while the concept of a digital Nigerian bank is appealing, the fact remains that it is still a Nigerian bank. It’s a terrific premise, assuming everything else is equal. However, you are well aware that in Nigeria, nothing is ever “Paribus’es.”

All of the things that could cause you worry while dealing with other financial institutions Online transfers are also a possibility; for example, when the NIBSS is down, all banks are affected as well.

If a Mobile Network’s payment processing gateway is down, you will be unable to purchase Airtime whenever you want.

In essence, the bank is functional, but there are still substantial hitches to iron out in the ecosystem.
What do you think of the Kuda bank application? Kuda App can be downloaded for free.

The kuda application is actually quite nice. Design that is both intuitive and meticulous in its attention to detail.

What is the best way to get started with the Kudabank app?

To obtain the app, please visit this link.

How to open a kuda bank account in simple steps

What documentation is required to start a Kudabank account? there are three tiers based on the amount of information you provide:

  • Simple– All that is required is a name and phone number.
  • Name, phone number, and BVN are the most basic information.
  • Name, phone number, BVN, and a valid ID are required for premium membership.

Are there any restrictions on Premium Accounts?

Yes. 250k on a single transfer, 1 million maximum in a day, 500k on a POS terminal, and 30k on an ATM single withdrawal. Because there are NO CHARGES, there are no restrictions!!

How do I transfer money from Kuda Bank to other financial institutions?

Follow these procedures to make a money transfer or send money from the Kudabank app to other banks in Nigeria:

  • Open the Kuda bank application and select “Payments.”
  • Then click on the “Send Money” button.
  • Fill in the necessary information about the transfer.
  • Confirm the transfer by sending an email.

Transferring Funds to the Kuda Bank Using the USSD Code

Kuda Microfinance transfer (USSD) code is *894*.

Using the USSD code, you can transfer money to your Kudabank account from your First Bank account. Dial *894*amount*Kuda account number# from your phone number that is linked to your First Bank account.

To transfer money from Wema Bank to a Kuda Bank account that has a USSD code, dial *945* Kuda account number*amount# from the phone number that is linked to the account and follow the instructions that appear on your computer screen.

Follow these steps to make a money transfer from GTBank, Polaris Bank, and Zenith Bank to Kuda Bank using a United States Dollar (USD) code.

  • Sign in to the Kuda app or website using your Facebook account.
  • Select “Add Money” from the drop-down menu.
  • Select “By USSD” from the drop-down menu.
  • Fill in the blanks with the amount you wish to send.

To call the correct USSD code, simply tap it and follow the on-screen instructions.

What is the physical location of Kuda Bank?

Kudabank’s registered office is located at 151 Herbert Macaulay Rd, Yaba, Lagos, Nigeria, and serves as the bank’s headquarters.

Customer Service / Contact Information for Kuda Bank

Kuda bank responds to consumer concerns using the support feature in its mobile application. However, if you ever require assistance (or simply wish to converse), you can contact Kuda by email at [email protected].

Customers, on the other hand, are unable to contact Kuda through phone. You can reach out to them either through the app or through the email address listed above.

Would it be beneficial for you to open an account?

Absolutely! It is not flawless, but it is quite good.

Is Kuda Bank Good for me to open a Business Account?

Yes, Kuda bank is good to be used in creating an account for your business. However, since they are majorly based online (no physical branch), I recommend that you have an alternative.

You can open a business account in other banks like Zenith, UBA, Access Bank, GTBank.

Best Kuda bank Alternatives

One thing I like about Kuda micro finance bank is that I have no need going to any branch just to open a valid account. All I need is my smart phone and everything is set.

Indeed, there are other banks out there which operate like Kuda Microfinance bank. If you feel that you are not satisfied with kuda bank services, you can opt in for any of the following banks.

1. Qonto

Qonto (also known as Olinda) is a corporation that provides financing services for small and medium-sized businesses.

2. Osu

It is a payment technology firm that offers a secure push-payment solution to businesses and consumers. It is headquartered in San Francisco.

3. Oveit

Oveit is a company that specializes in the acceptance of cashless payments at events and other locations.

4. Paerpay

Paerpay is a company that specializes in the provision of mobile payment solutions.

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