Kuda bank popularly known as the bank of the free has raised $10 million in a seed funding round led by Target Global. This round dubbed as the largest in West Africa, saw the participation of some other big industry companies like SBI Investment and Entrée Capital.
The bank founded in 2017, offers a non-fee virtual account accompanied with a debit card and promises an ability to qualify for quick loans in the near future and spending analytics. Kuda is insured by the Nigerian Deposit Insurance Company and licensed by the Central Bank of Nigeria. It gives customers the avenue to save automatically and claims a 15% yearly interest, their source of revenue mostly comes money from broker fees when a user tops up their phone or pays their bills through the app.
Using a core banking system called “Nerve” which the bank built in house and deployed in August 2020, the CEO of Kuda bank. Babalola Ogundeyi told TechCrunch in a press conference that Nerve does not need to Piggybank on another bank’s service or system. It is in the process of receiving a full banking license so that it can pursue its lending plan.
Ogundeyi further explained that the bank utilizes a machine-learning algorithm to fit its services to each customer, this its combines with its plans for credit. He said,
“The plan for our credit service is that we will base how much we issue and at which terms based on existing spending habits”.