The Kuda Bank app is one of Nigeria’s latest and most popular bank apps right now. Being an exclusively online bank has made it quite distinctive and appealing to Nigerian youths.
The Kuda Bank is overflowing with more innovative features that make it a viable alternative to Nigeria’s established banking system. Due to its online-only functionality, the Kuda app is a bank that doesn’t require its customers to visit any banks to conduct a physical transaction or handle any issues that may arise.
This article deals with everything that you want to know about the Nigerian digital bank, Kuda. Keep on reading to know more about Kuda bank and its features.
What Is Kuda Bank?
Several years ago, a group of youngsters who were determined to reform banking formed Kuda. The savings application that was created by this group before, evolved into a Central Bank-licensed microfinance bank for Nigerians.
This application is committed to helping Nigerians make the most of their money without overcharging.
You can easily open an account, keep tabs on your spending, increase your savings, get a loan, and make wise financial decisions with Kuda. Kuda is designed to ease the dissatisfaction of Nigerians with traditional banks.
How Was The Kuda Bank Formed?
Kuda Bank was established in 2016 by Babs Ogundeyi and Mustapha. It is ranked as the seventh most valuable bank in Nigeria. The bank is supposed to have an estimated value of $500 million.
Kudi Money, an online platform that provided short-term loans to people and businesses was later launched as the Kuda Digital Bank.
After receiving the banking license from the Central Bank of Nigeria in 2019, Kudimoney changed its name to Kuda and raised $1.6 million for pe-seed funding. Kuda bank transitioned from its lending business to a banking model.
During the COVID-19 pandemic, people couldn’t visit a bank physically and people started to use the Kuda Bank App. The popularity of this digital platform increased during the COVID-19 lockdown.
How Does Kuda Bank Work?
The Kuda Bank is also known as the “Free Bank” because when you subscribe to this app, you get a debit card or free, can send money without paying any fees, and even automatically earn 15 cents for every dollar you save. Kuda can assist you in maximizing your financial resources in a way that conventional banks cannot.
Due to the hefty fees required by traditional banks for services like issuing debit cards, transferring money between banks, and maintaining ATM cards, these offers are surprising to potential customers.
The savings earned using the app will be applied to loans offered to borrowers with a set interest rate. The savings can also be used to invest in other businesses with the bank receiving the interest.
Since Kuda Bank doesn’t construct any physical branches, the profits from these investments are enough to maintain the bank.
Types Of Kuda Bank Accounts
The Kuda Bank provides unique bank accounts,
- Kuda Personal Account
- Kuda Business Account
Kuda Personal account is meant for individuals who need to save, budget, spend and borrow money all at once. With the personal account, you will get a free debit card which you can use both online and offline
Kuda Business account is meant for business owners to sign up for the paper works within minutes. It helps the business to schedule huge payments to different people and it helps to track business transactions.
Signing In To Kuda Bank App
A Kuda Bank account can be opened through the Kuda app since it is a digital bank. To open an account in Kuda digital bank you need to be at least 16 years old and should have a valid phone number and an email address.
Here are the steps to sign in Kuda Bank app:
- Download the Kuda Bank App. You can download it from either the Apple Store or the Google Play Store.
- Click on the sign-in option
- Fill in the details such as your name, email address, password, and referral code if you have any.
- On the next pages, provide your name, gender, date of birth, and phone number.
- You will receive an OTP in your number for verification.
- Verify the number and give your address on the next page.
- Finally, you have to take a selfie and upload it.
If you follow these few steps, you can easily be a Kuda Bank App user.
Opening A Kuda Bank Account
Kuda bank offers three kinds of accounts that you can open without any hefty charges.
- Lite
- Basic
- Premium
These are the three kinds of accounts offered by Kuda bank. The Lite account in Kuda can be opened with only your name and number whereas the Basic account needs your name, phone number and Bank Verification Number (BVN) to get registered.
To take a Premium account you need to have a name, phone number, valid Id proof, and BVN.
With the premium account, you can transfer a maximum of N1 million every day and up to a maximum of 250k at once.
Requesting For A Loan In Kuda Bank App
The Kuda Digital Bank gives its users short-term loans which are known as overdrafts. You can request the bank to get a loan if you don’t have the option in the app to get the loan. When you put money into your Kuda account, the loan is instantly repaid and generates a daily interest of 0.3%.
The most amazing thing about Kuda’s overdraft is that you can apply for a loan without filling out any paperwork or providing any security.
Here’s how you can apply for a loan in Kuda Bank App.
- Open the Kuda Bank App
- Tap on the Borrow option
- Tap on Get Your Overdraft. You can see the maximum amount you can get as a loan there.
- You’ll be requested to input the amount you want to borrow.
- Do the verification using your transaction PIN, face ID, or fingerprint.
- Tap on Okay. The amount you requested will be deposited into your account soon.
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Getting An ATM Card In Kuda Bank App
The account holders in Kuda Bank account can choose between virtual and actual Visa cards from the bank. While traditional cards can be used both online and offline at ATMs and POS machines, virtual Kuda cards are only used to pay for online transactions.
You can order an atm card using your Kuda Bank App. Although ATM cards are free, you must have at least 1,00 Naira in your account to request one.
Here are the steps which show how to request an ATM card using the App.
- Open the Kuda Bank App
- Tap on the option Card
- Tap on the Request a Card option. If you want to get a physical card tap on Get a Physical Card. If you want a virtual card then go for the option Get a Virtual Card.
- For a physical card, you have to create a card PIN and tap next. Give your delivery address and that’s it.
- For a virtual card, confirm it with a transaction PIN and required ID proofs.
- Confirm the id proof and create a PIN for the virtual card and tap on Okay.
Save And Budget Feature In Kuda Bank
Using Kuda Bank App’s savings option, you can earn up to 15% interest.
The interest rates for the flexible and fixed saving plans offered by Kuda Bank are 10% and 15%, respectively. Additionally, you can use the spend and save function to preserve a portion of your purchase made with your Kuda account.
You can track and manage your spending with the budget tool in Kuda Bank.
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