No Longer Digital: Kuda Bank to Commence Physical Banking Operations, Gets CBN Licence
- Kuda Microfinance Bank has gained an approval for a national licence, expanding physical banking operations across Nigeria
- The bank said it remains committed to its digital-first strategy while adding physical touchpoints for customer support
- Industry trends show fintechs blending technology with physical presence to enhance customer experience and trust
Kuda Microfinance Bank has taken a major step beyond its digital-only roots after receiving approval from the Central Bank of Nigeria to operate as a National Microfinance Bank, paving the way for physical banking operations across the country.
The new licence removes the geographic restrictions that previously limited Kuda’s physical presence and marks a significant milestone in the evolution of one of Nigeria’s most prominent fintech brands.
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From app-only to nationwide presence
Until December 2025, Kuda operated under a Unit Microfinance Bank licence, which confined its physical operations to a single location.
With the national licence now in place, the bank is legally empowered to establish customer experience centres in multiple states, giving it a visible footprint nationwide.
According to Kuda, the approval is less about abandoning digital banking and more about regulatory alignment and long-term growth.
Digital-first strategy remains intact
The bank says it will continue to prioritise its digital-first strategy, offering customers app-based transfers, bill payments, savings, and instant credit, while adding physical touchpoints where needed.
The national licence also brings Kuda’s regulatory status fully in line with the Central Bank’s framework for microfinance banks, strengthening its compliance position as it scales its operations across Nigeria.
CEO: Licence strengthens compliance, flexibility
Musty Mustapha, Managing Director and Chief Executive Officer of Kuda Microfinance Bank, described the licence as a strategic move that deepens the institution’s relationship with the regulator.
“Securing a national microfinance banking licence is an important step for us as a regulated institution,” Mustapha said. “It strengthens our relationship with the Central Bank and affirms our commitment to operating at the highest standards of compliance as we scale.”
Physical touchpoints for in-person support
He stressed that Kuda’s identity as a digital bank remains intact, even as it prepares to expand physically.
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“While we remain digital at our core, this licence gives us the flexibility to create more physical touchpoints where customers want in-person support or engagement,” he added. “This allows us to serve Nigerians across the country in whichever ways are most convenient for them.”
More experience centres in the works
Subject to further regulatory approvals, Kuda plans to roll out more experience centres designed for customer support and community engagement.
These centres will follow the model of the bank’s existing experience centre in Yaba, Lagos, where customers and members of the public can interact directly with Kuda staff, receive assistance, and learn more about its products and services.
What changes for customers and what does not
Importantly, the national licence does not alter Kuda’s current product offerings or transaction limits.
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Customers will continue to access the same digital services they are used to, but with the added reassurance of physical locations for support and engagement.
A Broader shift in Nigeria’s fintech space
Industry observers see the move as part of a broader trend in Nigeria’s fintech space, where leading digital banks are blending technology with selective physical presence to build trust, improve customer experience, and meet regulatory expectations.
For Kuda, the transition signals a new phase of growth, positioning the bank not just as a fintech disruptor, but as a hybrid financial institution with nationwide reach and stronger regulatory backing.
CBN grants national licence to Opay, Moniepoint, others
Legit.ng earlier reported that CBN has approved a nationwide operating licence for several financial technology firms and microfinance banks, allowing them to conduct business across all states of the federation.
The decision covers leading digital payment providers such as Opay and Moniepoint, as well as other fintech companies and microfinance institutions that previously functioned under state or regional authorisations.
This regulatory upgrade represents a significant shift in Nigeria’s financial services sector, signalling the CBN’s intention to expand access to digital banking solutions nationwide, The Nation reports.
Source: Legit.ng
