One of the needs that are driving changes in the banking sector is convenience. The ability to conduct banking transactions from the comfort of your home or office. Well, virtual banking seeks to do exactly that. Although virtual banking is yet to be widely embraced in Nigeria, Kuda bank offers banking services via a smartphone app. This article will provide you with all the relevant details of how Kuda bank works so you can easily create Kuda bank account.
We’re the bank of the free. Most banks exist to tie you down with charges. We’re not most banks. Kuda is designed for your smartphone, free of ridiculous charges and great at helping you budget, spend smartly and save more.
Kuda Bank was co-founded by Babs Ogundeyi (CEO) and Musty Mustapha (CTO) in 2018. It is registered as Kuda Microfinance Bank with offices in Lagos, Nigeria and London, UK.
Kuda a virtual bank. This means that it is totally online. It does not have any physical branch like the ordinary financial institutions in Nigeria. All you need to operate your Kuda bank account is a smart phone with internet connection. However, like other banks, it avails a debit card (Visa) to its clients. The card is usually delivered to your doorstep in any location within the country. Apart from owning a physical, debit card, you’ll be able to create a Kuda virtual card on the app to pay for goods and services online.
Kuda bank is an ideal bank for individuals in Nigeria who are seeking for a financial institution with the following features:
- Convenience in accessing all the crucial banking services. All you need is a smart phone with Internet connection and you can visit your bank from the comfort of your home or office.
- No charges when you withdraw funds at any of their partner bank’s ATMs.
- No account maintenance fees.
- Free money transfers to other banks.
- No charges for depositing funds.
- Up to 15% annual interest.
- No minimum account balance.
If you open Kuda account with your name and phone number, you’ll get a basic account limited to a maximum balance of 300,000 naira, a maximum deposit of 50,000 naira at a time and a maximum transfer of 20,000 naira at a time. If you add your Bank Verification Number (BVN) and a government-issued ID (like your driver’s license, national ID card or international passport) to your Kuda profile, your account will be upgraded to a full account without limits.
Kuda registration process is simple. As a virtual bank, Kuda sign up is done online. You must be a Nigerian who has turned 18 and above. This is how to create Kuda bank account:
- To start Kuda bank account opening, you need to download the app either on App Store or Google Play
- You will be asked to fill in a few personal details including your name, email address, and phone number. At the end of this step, take a clear image of your face. The photo is required solely for identity verification.
- Order your Kuda ATM card, which will be delivered to any location within Nigeria within two weeks. With this Kuda Bank card, you can safely make online payments, withdraw cash from various ATMs, and purchase goods both locally and internationally. You can also apply on Kuda app for Kuda bank virtual card.
- After finishing Kuda bank registration, you will be able to save money, make money transfers, buy airtime and pay various bills with ease.
Can I open a Kuda account without BVN (Bank Verification Number)? Yes, it is possible to open a Kuda bank Nigeria without BVN, but the account will have certain limitations. An account that does not have a confirmed BVN and a valid ID (a driver’s license, voter’s card international passport, national ID card, or NIN slip) falls under Tier 0. 1. Limitations for this account include inability to add money to your account with a card, 50,000 naira receiving limit, inability to transfer money, pay bills, and buy airtime. Maximum balance for this account is 300,000 naira.
Kuda bank has partnered with Access Bank to make it easy for its clients in different parts of Nigeria to withdraw cash. As such, you can withdraw funds with Kuda bank ATM card at any of the 3,000 Access Diamond Bank and Access Bank ATMs. As part of its efforts to reduce the charges incurred by clients, Kuda doesn’t charge its customers for ATM withdrawals.
One of the operational strategies of this virtual bank is to reduce some of Kuda charges placed on clients by the traditional financial institutions. Fortunately, Kuda bank fees are transparent. For instance, as long as you have signed up with your BVN (Bank Verification Number), you will enjoy 25 free money transfers each month. If you don’t have the BVN, your free transfers in a month will be 2. Additional transfers attract Kuda transfer charges of 10 nairas. All other services are free. This includes Kuda bank sign up, virtual bank account, card maintenance, monthly maintenance, debit/credit alerts, Kuda bank ATM card withdrawals, and using your Kuda debit card to make payments.
Kuda ATM card is free of charge. However, you will need to have a minimum 1,000 naira in your Kuda account to be able to order and receive one. This is not a fee but a minimum balance for the card request. The card will be delivered for free and there wont be any monthly fees.
Kuda Bank account holders can apply for Kuda international card. If you have upgraded Kuda account by confirming BVN (Bank Verification Number) and adding a valid ID card to your Kuda profile, you can request Kuda international card. When you get your get your international Kuda Card, your current card will be deactivated. You can use this card internationally.
Kuda virtual cards are free to create on Kuda. The cards work online in Nigeria where Mastercard is accepted.
- Open Kuda and tap Card on the menu at the bottom of your screen.
- Tap Request A Card.
- Tap Get A Virtual Card.
- Confirm with your transaction PIN, fingerprint or Face ID.
At the moment, there is no Kuda dollar card. However, Kuda customer support has told SatoshiFire that they are working on major improvements to Kuda app and Kuda virtual dollar card will be rolled out soon.
There are several ways that one can deposit cash into his/her Kuda bank account. This includes:
- Through any bank in Nigeria that either has internet banking or a banking app.
- Using a credit or debit card. To do so, go the Kuda app. Select ‘Add Money’ and then click on ‘Add by Card. For this option, depositing amounts that don’t exceed 100,000 naira is free. The charges of anything above that will depend on the third party in question.
- Depositing cash at any of Kuda’s partner banks. To do so, go to the Kuda app and select ‘Add Money’. Click on ‘Add by Deposit’ and follow the presented instructions.
- Click on
- Enter the requested details
You can send money from your GTBank account to a Kuda account offline.
- Type in the Kuda account number and confirm the transfer with
How to add money to your Kuda account with USSD.
Kuda bank account limit depends on they type of transaction. Kuda bank transfer limit is 1 million naira on a single transfer. Kuda bank spending limit through a POS terminal is 500,000 naira while Kuda bank withdrawal limit from ATM is 30,000.
You may be asking yourself, “Is Kuda Bank safe?” Kuda Bank is safe and legit. It is licensed by the Central Bank of Nigeria. The bank uses high-security encryption used by best banks around the world. Kuda Bank insures every deposit you make into your Kuda account. For example, if a disaster takes place and the bank loses its money, the Deposit Insurance Fund of the National Deposit Insurance Commission (NDIC) is required to pay you 200,000 naira as compensation.
Even though virtual banking has not been widely accepted in Nigeria, there exists well-established entities that seek to transform the country’s banking sector. Kuda bank is one such institution. In addition to reducing or removing some of the charges that are traditionally associated with financial institutions, this virtual bank offers convenience to its clients. For instance, you can open Kuda account online from the comfort of your home. All you need to access the essential banking services is a smart phone with Internet connection.