In Nigeria today, digital banks are becoming very rampant and one of the most popular trending digital banks is Kuda Bank. Kuda bank which is also referred to as the “Bank of the Free” is an online/digital bank that provides banking services to people and businesses in Nigeria.
If you have been hearing about Kuda Bank and want to know more about it. I have made that easier for you. In this article, I explained in detail what Kuda bank is, how Kuda bank works, how to get started on Kuda etc.
A brief History of Kuda Bank
Kuda bank, previously known as Kudimoney was founded by Babs Ogundeyi and Musty Mustapha in 2017. Kudimoney started in London as a start-up website that provided short-term loans to people and businesses.
But in 2019, it was renamed Kuda bank. In regards to the change of name, Kuda bank changed from its lending business to a banking model related to other regular banks.
Also, It acquired a $1.6 million pre-seed fund after receiving its banking license from The Central Bank of Nigeria. Kuda bank is the first digital bank in Nigeria to hold a license from the Central Bank of Nigeria (CBN). Presently, it has a license for mobile banking and microfinance.
Due to the fact that users did not need to physically visit a place in order to register a Kuda account or handle their banking problems, Kuda’s popularity increased during the 2020 Covid-19 lockdown.
Today, Kuda Bank’s net value is about $500 million ranking it as the seventh largest bank in Nigeria.
What Kuda Bank is All About?
Kuda bank is a top-notch mobile app and digital bank that is fully authorized and governed by the Central Bank of Nigeria. The headquarters is at 151 Herbert Macaulay Way, Yaba, Lagos, Nigeria.
Kuda bank app not only offers excellent services that help account holders in budgeting, saving money, and earning interest on their savings, but it also has a very reasonable pricing structure.
When a Nigerian opens an account with Kuda bank, they are entitled to 25 free transfers each month, free ATM withdrawals at specific ATMs, and no monthly maintenance fees.
How Does Kuda Bank Works?
Similar to other conventional banks, Kuda Bank doesn’t charge users to monitor their accounts. Customers can receive loan services from Kuda Bank, make free money transfers to other Nigerian banks and also no-cost on debit cards.
One of the reasons why these offers are astounding to potential customers is due to the hefty fees required by other traditional banks for services like issuing debit cards, transferring money between banks, and maintaining ATM cards, It’s equally crucial to be aware that the app will use any savings to finance loans to borrowers at a particular interest rate. It’s also crucial to be aware of the fact that any savings earned using the app will be applied to loans offered to borrowers with a set interest rate.
Savings can also be used to invest in other businesses, with the bank receiving the interest earned.
This is not a reason for concern because this is the same way that other traditional banks make money. The main distinction is that Kuda Bank charges significantly less than other traditional banks. Since Kuda Bank doesn’t construct physical branches, the profits from these investments are enough to maintain the bank.
What makes Kuda Bank Stand Out?
Kuda Bank is a Nigerian digital bank that has been in operation for over five years. The bank offers services such as loans, deposits and investments.
Kuda Bank stands out because it has a wide range of services to offer its customers. It also provides loans, deposits and investments which makes it stand out from other banks in Nigeria.
3 major things that make Kuda bank stand out are:
Less Stress, Fast and Reliable: Since Kuda is a digital bank, all of the banking services it offers are easier, quicker, and more effective. The majority of Nigerians are aware of the commotion involved in using the financial services offered by Nigerian banks, including the lengthy and annoying lines, delayed transactions, stress, lost time, etc. but with Kuda, it is much better, faster and easier.
Free banking services: With Kuda bank, the majority of its banking services are free, which is one of Kuda Bank’s unique qualities. As a result, you are free to obtain a debit card, make purchases, and receive payments, all for free. This is why it is called the Bank of the Free.
Easy access from any location: With Kuda bank, customers can access banking services from any location in Nigeria with the utmost convenience. Since it’s a digital bank, customers can take advantage of services anytime and anywhere. Creating an account on the Kuda app is the only requirement for users to get started.
How to get started on Kuda?
Since Kuda Bank is a digital bank, opening an account does not need to go to a physical location. Here are 3 major requirements to get started on Kuda bank;
Be a citizen of Nigeria and at least 16 years old
A smartphone with the most recent Kuda app version supported (iOS/Android).
A valid phone number and email address.
You can download the Kuda bank app from Playstore or Appstore if you meet the aforementioned requirements. The Kuda bank app is eligible for all devices.
After installing the application, carefully follow the instructions that pop up. Fill in your age, email address, and phone number as requested.
Note: There are three levels of Kuda personal bank accounts: level 0, level 1, and level 3. New accounts are placed in tier 0 by default, however, you must upgrade your account to get all of Kuda’s features and bonuses.
You would have to provide identification in order to upgrade your Kuda account. You can do this by submitting a video of yourself together with a government-issued ID, your home address, your BVN, and your address.
What are the benefits of being a member of Kuda Bank?
When you register for a Kuda account, you receive the following benefits:
Free delivery of debit cards to your location
Making wise budgets will allow you to get control over your money.
Receive a clear visual overview of your money.
At more than 3,000 ATMs, you can withdraw money for free.
Every month, 25 are provided for free transfers to other banks.
Save regularly to earn 15% interest each year.
You can quickly block your card if it is lost.
No annual cost for cards.
Types of Kuda Accounts.
With Kuda bank, customers can open one of two types of accounts. The two types of accounts are
• Basic account
• Full KYC account
In order to open a Basic Kuda bank account, customers must supply the following information:
In order to open a Full KYC Kuda bank account, customers must supply the following information:
Valid ID (National ID Card, Voters Card, Drivers Licence, and National Passport).
The primary distinction between the two types of accounts is that basic accounts have restrictions on one-time deposits and withdrawals. For a Basic account, daily contributions or withdrawals are typically limited to N100,000. Deposit and withdrawal limits are unrestricted daily for the full KYC account type. You will also be permitted an infinite number of daily transactions, with a single transaction cap of $1,000,000.
Kuda USSD Codes
On Kuda bank app, you can deposit cash, use a card, a USSD code, or transfer money from other bank accounts to your Kuda account.
The USSD code varies depending on the bank you wish to send money from, however you can see the one that works by selecting Kuda bank and using your bank’s transfer code.
The USSD code for your bank can also be found by:
Opening the Kuda bank app
Select Add Money. Select the Add Money through USSD option since we wish to send using USSD.
On your screen, a list of codes for several banks will appear. Click the code for your bank.
If you are unable to use the Kuda bank app, you can look for the bank code here:
Kuda’s USSD code for Zenith bank
*966*100*the kuda bank account number#
Kuda’s USSD code for GTBank
Kuda’s USSD code for Access bank
*901*100*the kuda bank account number#
Kuda’s USSD code for First Bank of Nigeria
*894*100*kuda bank account number#
Kuda’s USSD code for Wema bank
*945*kuda bank account number*100#
Kuda’s USSD code for Polaris bank
*833*100*Bank account number#
What are the cons of using Kuda Bank?
The Kuda Bank app offers many astounding features that are not available in the traditional banking system. However, there is a downside to this. Some of them are;
It takes a while for the debit card to arrive.
USSD codes are not available for transactions: This implies that you cannot conduct any business if you are in an area with poor internet connectivity.
You are not notified through SMS when you are credited or debited.
Daily interest rates on overdraft loans are 0.3%;
Functions mainly in naira and does not have accounts in dollars, euros, or pounds.
The Verification process is time-consuming.
How Referrals work on Kuda Bank?
Each individual you refer must add their BVN and a legitimate ID to their Kuda app and purchase at least 500 naira worth of airtime in order for you to get rewarded for the referral.
When you submit a claim for your referrals, we’ll pay you 1,000 naira for each referral you make and send another 1,000 naira to everyone who uses your referral code to complete the referral process.
After the person you referred has finished the referral process, you will have 24 hours to claim your referral bonus.
In order to receive your referral bonus after 24 hours:
1. Open the Kuda app and then choose More.
2. Click Referrals.
3. Click View History.
4. Click Claim after a referral is finished.
5. Kuda bank will deposit 1,000 naira into your Spend account and send the friend you recommended another 1,000 naira.
Unlike other traditional banks, Kuda bank offers you lots of Free banking services, digital banking, top notch customer service and others. If you have been thinking of using Kuda bank, the above information should have given you the best option.