Fakoyejo OlalekanThe microfinance banking market in Nigeria is shrinking and Nigerians are having more competitive services to choose from thanks to Financial technology (Fintech) companies.
It’s no news that technology has disrupted the banking system globally, and as a result, there’s an encroachment from digital lending and savings apps that have transformed into microfinance banks.
After years of operating as just a loan or savings app, these digital platforms’ status has been upgraded by the Central Bank of Nigeria (CBN) through the provision of a microfinance banking license.
Below are 12 digital banks licensed by CBN to operate as microfinance banks in Nigeria
Sofri
Sofri is a financial technology (Fintech) company operating on the microfinance license of Links Microfinance Bank, the subsidiary of DLM Capital Group.
- The company was unveiled in 2022 by DLM Capital Group and led by its Chief Executive Officer, Funsho Idowu, as it seeks to become an enabler of financial liberty.
- Sofri’s services are Savings, Deposits, Quick cash, Salary Express, Rent Loans, Auto Loans, and Investments, as well as operating as a payment platform, SofriPay.
EaseMoni
EaseMoni describes itself as a professional platform offering reliable financial services backed by the microfinance banking license issued to the firm.
- The financial technology company provides market-competitive credit loans across Nigeria, Egypt, Pakistan, Indonesia, Mexico, as well as Colombia.
- EaseMoni offers quick and flexible loan products without collateral to individuals or low-income earners in Africa, Southeast Asia and Latin America without having to walk in with documents. This differentiates the fintech from regular microfinance banks.
OPay
OPay is bridging the financial gap between upper- and lower-class households by providing and increasing access to capital opportunities for the latter.
- OPay is one of the most downloaded credit apps in Nigeria, with 35 million plus registered app users and 500,000 agents. It is also used in Asia, Africa and Latin American countries like Mexico, Egypt and Pakistan.
- It is also one of the unicorn Fintech companies operating in Nigeria with a valuation of $2 billion after securing $570 million in investments from 14 venture capital firms.
- Owned by Opera Norway AS Group, OPay offers similar services as its rivals, with the firm’s app users able to save, deposit, pay bills and request quick loans on the platform.
- OPay’s services are powered by Blueridge microfinance bank, through which it secured the microfinance license to operate in Nigeria.
VFD Microfinance Bank
VFD Microfinance Bank is in the business of creating wealth for its customers through the firm’s digital and mobile banking platform.
- The company has recorded 500,000 plus downloads, as Nigerians seek to access its services which include; bills payment as well as high rates of returns on investments.
- VFD also offers budgeting and account management tools and different savings plans, from lock savings to crew savings, and allows you to either enable or disable interest payments on your savings account.
Moniepoint
Moniepoint Microfinance Bank is the definitive bank for small and medium-sized businesses in Nigeria. It has over 600,000 business owners who use their business solutions.
- The fintech company says it provides simple solutions to power your business, such as issuing you loans, payment collection, and offering other tools to help manage your operations.
- Through its Business Account to Point of Sale Terminals and Expense Cards, Moniepoint’s solutions have helped businesses on its platform process about N7 trillion monthly.
- It operates as a Switch and Processor platform and a microfinance bank, creating financial opportunities for Nigerians through its digital channel.
FairMoney
From being just a quick credit company, FairMoney expanded into a microfinance bank after securing a license from the central bank.
- The FairMoney app has recorded over 10 million downloads on Google Playstore, as the digital bank makes it easy for you to apply for a loan and receive your loan into your bank account in minutes 24/7.
- FairMoney offers loans up to N3 million, however, you need to have been constantly obtaining and repaying loans when due to have access to millions of loans.
- With just your Android phone, a Bank Verification Number (BVN) and FairMoney app, as well as a few Know Your Customer (KYC) questions, you can obtain a loan without collateral.
- FairMoney’s growth has also been aided by $54.4 million in investments from six local and international venture capitals.
Mint
Finex Microfinance Bank Ltd serves the public through Mint, a digital bank that provides low-interest loans, and current and savings accounts.
- The range of services of Mint, founded by Eze Amuchie, Nnazilim Egbuonu, and Obinna Ogbodo, also includes a personalised money tracker.
- Mint claims to be the most accessible digital banking platform for Individuals, Micro, Small and Medium Enterprises and Corporates in Nigeria.
- The mission of the financial technology company is to simplify financial services for their customers and help them build financial independence, while also ensuring seamless, transparent, and inclusive banking services.
Piggyvest
Piggyvest is one of the most popular saving apps in Nigeria, helping over 4 million customers achieve their financial goals by helping them save and invest with ease.
- The savings app has a microfinance bank license of its own. Although, when it started operation, Piggyvest used the licenses of two other microfinance banks.
- While the company states that it has four million customers, on Google Playstore alone, Piggyvest has one million plus downloads.
- Piggyvest is mostly popular among Nigerian youths, who uses the app for target savings, lock savings, dollar account and as an investment platform.
- To support its operation and scale in its niche market, Piggyvest has raised $1.2 million from four investors; both local and international.
Kuda
Another popular savings and deposit digital bank among Nigerian youths is Kuda. It started off as a digital bank but grew into a microfinance bank.
- Kuda describes itself as the money app for Africans, allowing you to save, spend, send and invest your money without limit and across borders.
- With $91.6 million in investments from 16 investors, Kuda is funding its operations massively to further deepen its reach and remain competitive against companies like Piggyvest.
- Since releasing its app in 2019, Kuda has recorded over five million downloads on Google Playstore, as customers patronise the Fintech company for its financial solution tools that help grow and secure wealth.
Eyowo
Eyowo says you have everything you need to improve or change your relationship with money for good if you bank with the company, which operates on a direct microfinance banking license from CBN.
- Although Eyowo has the lowest downloads amongst its peers, with about 100,000 plus downloads since its release in 2017, still, that doesn’t rule out the fact that it gives you one app for multiple services.
- With Eyowo, you can save, grow and control your money. Also, in new and simple ways, the firm helps you keep track of where your money goes and those receiving the money.
Sparkle
Simplifying your financials is the goal of Sparkle. It provides seamless solutions to Nigeria’s retailers, Small and Medium Enterprises (SMEs) and individuals.
- The digital bank with a microfinance banking license helps you intersect your finances, data and lifestyle, as a result, Sparkle’s over 190,000 customers have processed transaction value of $420 million on its platform.
- Sparkle has raised $5.4 million from two investors to support its mission to democratise access to valuable solutions for your business and personal needs, which the firm believes will assist you in fulfilling your potential.
- The service of Sparkle is being embraced among Nigerians, considering the company has had 500,000 plus Google Playstore downloads since 2020, which is an improvement compared to Eyowo.
Carbon
Co-founded by Chijioke Dozie and Ngozi Dozie, Carbon is providing financial services to all Africans from Nigeria, where it has secured a microfinance banking license.
- Carbon provides access to credit, simple payment solutions, high-yield investment opportunities and easy-to-use tools for personal financial management.
- The app provided by the company for customers to access its services has received over one million downloads on Google Playstore, but Carbon says it has over three million customers.
- On its mission to improve access to credit and quality financial services for Africans, Carbon has raised $15.8 million from three venture capitals.
Frequently asked questions
Best instant loan apps in Nigeria
There are several loan apps in Nigeria bridging the gap between access to credit and the lower-income households in the country.
Some of the loan apps don’t request collateral and they disburse loans faster than commercial banks and microfinance banks.
All you need to do is download their apps, fill in your details and request the loan you want. Some of the instant loan apps are Farimoney, Carbon, Branch, Halo Credit, Palmcredit, Okash, and more.
Which loan apps were probed in Nigeria
FairMoney, OKash, Opay, Carbon, and other loan apps were probed by the House of Representatives over threats received by debtors.
Others are SharpCredit, MoneyHub, 9jaCash, Henloan, Get Loan, Cashbean, CashMe, LoanMe, LifePurse iLoanPro, PalmCredit, Branch, QuickCheck, New Credit Loan App, Future Cash, and Plenty Cash.
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