Another Company Secures License To Operate Banking Service, List of 5 New Services Expected
- Flutterwave has secured a microfinance banking licence, enabling carry out of banking services
- With the new license, the company will now launch new products, including accounts, cards, and lending
- Flutterwave said it has strengthened the bank’s capital base and is prepared to meet regulatory requirements
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Flutterwave, a pan-African fintech company, has secured a national microfinance banking licence in Nigeria, allowing it to hold customer deposits and issue loans directly for the first time in its largest market.
The licence was obtained through the acquisition of open banking startup Mono in January.
Source: UGC
New era for Flutterwave
Flutterwave’s chief executive officer, Olugbenga Agboola, said the licence eliminates reliance on third-party banks for services such as virtual accounts, cards, and fund settlements, enabling the company to improve margins and control its infrastructure.
He said:
“Over $40 billion has gone through our platform, and not one cent was retained. With this new phase, money now stays on our platform, and margins improve. That’s the value of owning infrastructure.”
Flutterwave Bank will operate as a subsidiary of the company’s Nigerian entity, with a separate board and leadership team currently being constituted to ensure strong corporate governance, Agboola said.
TechCable reports that the company already processes payments for global firms, including Uber, Microsoft, and Netflix, providing a large customer base that it plans to convert into banking users.
This transition is expected to give Flutterwave access to low-cost deposits to support lending, backed by transaction data and open banking capabilities from Mono, the Guardian.
Abdulhamid Hassan, chief executive officer of Mono, said its infrastructure would help address lending risks by enabling repayment across multiple customer accounts linked to a Bank Verification Number (BVN).
Hassan said"
“Lending is significant, but non-performing loans are a major challenge. With Mono’s infrastructure, that will not be a major issue for us.”
Flutterwave’s move follows a similar strategy by rival fintech Paystack, which recently acquired a microfinance bank to expand into banking services.
Analysts say the shift allows fintechs to deepen customer relationships and increase revenue per user, moving beyond the low-margin payments business toward more profitable financial services.
The Central Bank of Nigeria has recently tightened and streamlined licensing requirements for fintechs, making microfinance bank acquisitions a faster route to nationwide banking operations.
Flutterwave said it has strengthened the bank’s capital base and is prepared to meet regulatory and security requirements associated with operating a licensed financial institution.
Source: Getty Images
Flutterwav 5 product rollout planned
- Issue its own account numbers without partner banks
- Launch payment cards for consumers and businesses
- Process merchant payouts on its own infrastructure
- Expand Send App into a full consumer banking platform
- Relaunch Flutterwave Capital for data-driven lending
Paystack microfinance bank begins operations
In a related development, Legit.ng reported that Paystack, a Nigerian fintech company, marked its 10th anniversary with the launch of a new subsidiary, Paystack Microfinance Bank (MFB), after acquiring Ladder Microfinance Bank.
Founded in Nigeria a decade ago to simplify how businesses get paid, Paystack has grown from a single payment product into a platform operating across five African countries.
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Source: Legit.ng
