Kuda MFB Targets Nationwide Experience Centre Expansion After Licence Upgrade
In a significant development for Nigeria’s fintech landscape, Kuda Microfinance Bank (Kuda MFB) has announced plans to expand its physical footprint across the country by rolling out additional experience centres following a major regulatory upgrade of its licence by the Central Bank of Nigeria (CBN)
Until late 2025, Kuda MFB operated under a Unit Microfinance Bank licence, which constrained its physical operations to a limited geographic area despite its nationwide digital reach via the Kuda app. That changed following the CBN’s recent regulatory shift, which saw licences for several prominent digital finance players — including Kuda, Moniepoint, Opay, PalmPay and Paga — upgraded to national microfinance banking status.
The upgrade reflects the apex bank’s recognition that these fintechs, though digital at their core, already serve customers across Nigeria and therefore need an aligned regulatory status that supports physical presence and stronger oversight.
Why the Upgrade Matters
The transition to a National Microfinance Bank is more than symbolic. Under the CBN’s framework:
- Kuda MFB can now operate experience centres nationwide, breaking free from previous location restrictions.
- The bank is subject to higher regulatory standards, including enhanced compliance, reporting, and disclosure.
Minimum capital requirements rise substantially from around ₦200 million as a tier-one microfinance entity to at least ₦5 billion under national status.
It must meet enhanced risk management and transparency obligations, including the publication of annual accounts in a national newspaper.
According to industry analysts, the change signals the CBN’s effort to balance rapid fintech innovation with consumer protection and regulatory prudence.
The concept mirrors the existing centre in Yaba, Lagos, which has served as a community hub for product education, customer service, and engagement. Expanding this model nationwide aligns with evolving consumer preferences, especially among segments that value face-to-face interactions or are new to fintech-led banking.
In a statement accompanying the announcement, Musty Mustapha, MD/CEO of Kuda MFB, said the national licence strengthens the bank’s regulatory standing while providing the flexibility to develop physical touch points where customers want them most.
He emphasized that the bank will remain digital at its core, with in-person centres complementing not replacing its app-based services.
Kuda’s approach highlights a broader trend in Nigerian fintech: blending digital innovation with physical trust anchors. For many customers, particularly in informal and underserved communities, the ability to walk into a centre, speak with a representative, or resolve disputes face-to-face builds confidence in the financial system.
Kuda’s national licence comes at a time when the fintech continues to record impressive digital traction. In the first quarter of 2025 alone, the platform processed over 300 million transactions worth about ₦14.3 trillion and issued billions in instant credit products underscoring its relevance in everyday finance across Nigeria.
Kuda MFB’s transition from a digital-only microfinance entity to a nationwide hybrid bank marks a pivotal moment for Nigeria’s fintech ecosystem. By combining digital efficiency with physical accessibility, the bank is setting a new benchmark for inclusive financial services that meet customers where they are both online and offline.
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