The ability to conduct all your banking activities from the comfort of your couch is one remarkable factor. It is transforming the banking sector. Well, virtual banking is doing exactly that. Virtual banking in Nigeria is growing. Opening a Kuda bank account is a step closer.
Kuda Bank is a digital bank. It offers banking services via an app. You can also use a USSD code with the Kuda bank app. All banking services are carried out on the app. You can send money to John. You can also withdraw from the ATM and deposit. Kuda Bank lets you do everything a regular traditional bank offers and even more.
In this article, we’ll explain all the relevant details. We will also guide you on the essential information. This is crucial before you open a Kuda bank account online from the comfort of your home.
KUDA bank founders
Kuda Bank was co-founded by Babs Ogundeyi (CEO) and Musty Mustapha (CTO) in 2018. It is registered and referred to as Kuda Microfinance Bank and has offices in Lagos, Nigeria, and London, UK. Kuda Bank is fully operating in Nigeria. It is known as the first digital-only bank in the country. More expansion is coming soon.
How does Kuda Bank work?
Kuda Bank is a digital banking application, so its activities are done online. It does not have any physical branches compared to the regular traditional financial institutions in Nigeria.
All you need to use a Kuda bank account is a smartphone with a stable internet connection. You can download the app from the Google Play Store and the Apple App Store to start with.
If you’ve successfully registered an account, you can ask for a Kuda debit card; did I mention it’s free? When you ask for a card, it will get delivered to the location you have provided. You can run and manage your account via the Kuda app or website.
With a Kuda account, you can do other financial activities in your account, like saving and getting loans [if you’re qualified.] Kuda will help you manage your account. It also provides other services for you, like paying bills. These include making instant transfers and saving as you spend.
Kuda Bank is referred to as “the Bank of the Free.” You might be wondering how the heck they make money. Well, Kuda makes money from commissions made on airtime and data purchases. As well as the fee a seller pays when you shop with your Kuda debit card and more.
Kuda bank features
- Kuda Bank does not have the smallest account balance.
- Does not have any account maintenance fee.
- Also free money transfer to other banks.
- Depositing funds with no charges.
- 15% annual interest on Save mode.
- Convenience in accessing all the crucial banking services.
- Do not have any charges when you withdraw funds at any of their partner bank’s ATMs.
Kuda bank requirements to open an account
Every financial inclusion has its major requirements, and you must meet these criteria before you can register for an account.
- Kuda Bank requires a minimum of 18 years old and a Nigerian citizen.
- A working smartphone.
- An active phone number and email address.
- A referral code if needed: CGJTXQW3
Kuda bank account types
Kuda Bank offers two account types; the limited account type, and the upgraded account type. If you open a Kuda account with your name and phone number, you will get a basic account, which is limited to a;
- Maximum balance of 300,000 Nigeria Naira.
- Maximum deposit of N50,000 Nigeria Naira.
- Maximum transfer of N20,000 Nigeria Naira.
If you add your Bank Verification Number (BVN) to your Kuda profile, it will be upgraded without limits. Adding a government-issued ID completes the process.
To upgrade your account to the highest, you need to send all the required information. Provide your BVN and location. Send a government-issued ID like a Driver’s License, National Identification Card, Passport, or voter’s Card. To do this;
- On the Kuda bank app, tap on “More,” then “Account limits.”
- Tap on “Account upgrade” and you will be asked to upload your ID, residential location, and BVN, that’s all. Your account will be upgraded instantly.
Once you’ve upgraded your account to the highest KYC level, your limitations will be dropped. You can carry out unlimited transactions per day. You will also have an unlimited account balance.
How to open a Kuda bank account
To open a Kuda bank account is very easy. It’s a virtual bank, so you have to sign up online. You must be 18 years old and above. To open a Kuda bank account online, download the Kuda App. You can find it on the App Store or Play Store.
Note; Kuda bank can be opened without a Bank Verification Number (BVN). Still, it will have certain restrictions. These limitations will affect the account limit and your total balance.
- Download and install the app from the Google Play Store, or the Apple App Store.
- Once you open the app, skip the intro and click on “Start.” Then accept the “Terms & Privacy” and click on continue.
- Type your email location and create a password for the account.
- If you have a referral code [CGJTXQW3]you can type it in. Click next and then confirm your email address.
- After filling in the required information, you’d be asked to take a clear image of your face. The photo is required for identity verification of your account.
After finishing Kuda bank account registration, you will save money in the account. You can make transfers from the app. You can also buy airtime and pay various bills from the comfort of your home with ease.
Kuda bank card
After you’ve successfully created your Kuda bank account, you can place an order for your Kuda debit card. It will be delivered to your location anywhere in Nigeria. Delivery takes place within two weeks after placing the order. To request a Kuda Card:
- Sign in to Kuda
- Tap Cards at the bottom of your dashboard.
- Tap Request A Card.
- Tap Get A Physical Card.
- Fill in your delivery address.
- Confirm your phone number.
- Type in the name you want to show on the card.
- Confirm your delivery details.
With the Kuda bank debit card, you can safely make online payments, and withdraw cash from various ATM. And buy goods both locally and internationally with the card (where Naira is accepted.)
Kuda bank Naira virtual card
If you don’t want to get a physical debit card from Kuda, you can request a virtual card instead. You can use it online in Nigeria.
How to Create Kuda Virtual Card
- Sign in to Kuda
- Tap Cards at the bottom of your dashboard.
- Tap Request A Card.
- Tap Get A Virtual Card.
- Confirm with your transaction PIN, fingerprint, or Face ID.
How to deposit money in a Kuda account
Money can be deposited into a Kuda bank account in different ways, which include;
Internet or mobile banking: If you have an Internet or mobile banking account, you can deposit money. This is possible with any bank in Nigeria. You can send money through a USSD code from another bank.
- Go to the send money section from your mobile banking app. Type in the Kuda account number. Select Kuda as the destination bank. Type in the amount and hit send.
Using a credit/debit card: You can use a debit card from any other financial institution. If you have a traditional bank card, you can use it too. This card will fund your Kuda account.
- Sign in to the Kuda app, Tap on Add Money, and then click on Add by Card. For this choice, depositing amounts that don’t exceed 100,000 Nigeria Naira is free.
Depositing cash at Kuda’s partner banks: If you want to deposit cash, you need to find any Kuda partner bank.
- To do so, go to the Kuda app and select Add Money. Click on Add by Deposit and follow the presented instructions.
How to send money from Kuda bank account
- Open your Kuda bank account,
- Click on Payments,
- Select Send money,
- Enter the requested details and hit the send button.
Kuda bank fees
Kuda Bank; the bank of the free is giving out 50 free transfers every month if you sign up. Any transfer from here will cost you 10 Nigerian Naira.
Kuda bank savings
Kuda bank saving feature is a beast. It offers up to 15% interest rates every year at fixed savings. You shouldn’t let it go.
Kuda spend + save
Kuda Spend+Save allows you to save automatically every time you spend on your Kuda account. You can withdraw anytime.
Flexible Savings
Flexible savings allow you to save daily, weekly, or monthly toward a goal and get up to 10% annual interest.
Fixed Savings
Fixed Savings enables you to stash your money at any time and get a 15% annual interest rate.
Once your savings plan has ended, your money will be transferred to your Kuda bank account. You can even make a withdrawal before the savings plan’s end date.
Kuda bank security
Kuda Bank secures all accounts with the same high-security encryption used by traditional banks and all financial inclusion. Financial services like Kuda take extreme steps to secure customers’ information and financial details.
This is not financial advice. You can do your research about Kuda Microfinance Bank starting from their official website. Kuda Microfinance Bank is registered in Nigeria and licensed by the Central Bank of Nigeria (CBN). All deposits in the digital-only bank are insured by the Nigeria Deposit Insurance Corporation (NDIC).
