One remarkable factor that is rapidly changing the banking sector is the ability to conduct all your banking activities from the comfort of your couch. Well, virtual banking is doing exactly that, however, virtual banking in Nigeria is growing and opening a Kuda bank account is a step closer.
Kuda bank is a digital bank that offers banking services via an app and USSD code for the Kuda bank app. All banking services are carried out from the app, from sending money to John, to withdrawing from the ATM and depositing. Kuda bank allows you to do everything a regular traditional bank offers and even more.
In this article we’ll explain all the relevant details, and what you need to know before opening a Kuda bank account online from the comfort of your home.
First, let take a deep breath and don’t just go into the app direct, we want you to know who created and founded the company you’re going to be using.
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, and it’s referred to as the first digital-only bank in Nigeria, with more expansion coming soon.
How does Kuda bank works
Kuda bank is a digital banking application, which means that its activities are done online. It does not have any physical branch compared to the regular traditional financial institutions in Nigeria.
If you’ve successfully registered an account you can request for Kuda debit card; and did I mention it’s free. When you request a card it will get delivered to the location you have provided. You can operate 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 and also provide other services for you like paying bills, making instant transfers, and saving as you spend.
Kuda bank is referred to as “the Bank of the free,” and you might be wondering how the heck they make money. Well, Kuda makes money from commissions made on airtime and data purchase. As well as the fee a seller pays when you shop with your Kuda debit card and more.
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Kuda bank features
- Kuda bank does not have a minimum 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) and a government-issued ID to your Kuda profile, your account will be upgraded without limits.
To upgrade your account to the highest, you need to submit all required information: your BVN, Address, and a government-issued ID; Driver’s License, National Identification Card, Passport, or Voters Card. To do this;
- On the Kuda bank app, tap on “More,” then “Account limits.”
- Tap on “Account upgrade” you will be asked to upload your ID, residential address, and BVN, that’s all. Your account will be upgraded immediately.
Once you’ve upgraded your account to the highest KYC level your limitations will be dropped, and you would be able to perform unlimited transactions per day with an unlimited account balance.
How to open a Kuda bank account
To open a Kuda bank account is very easy, since it’s a virtual bank you have to sign up online and you have to be 18 years old and above. To open a Kuda bank account online, you have to download the Kuda App from App Store or Play Store.
Note; Kuda bank can be open without a Bank Verification Number (BVN,) however, it will have certain restrictions on 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,” accept the “Terms & Privacy” and click on continue.
- Type your email address, 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 be able to save money in the account, make transfers from the app, purchase 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 then place an order for your Kuda debit card, which will be delivered to your location anywhere within Nigeria — 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, withdraw cash from various ATMs, and purchase goods both locally and internationally with the card (where Naira is accepted.)
Also Read: How to create your own virtual Google Card
Kuda bank Naira virtual card
If you don’t want to get a physical debit card from Kuda, you can still request the virtual card and 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 through different ways, which includes;
Internet or mobile banking: If you have an internet or mobile banking account you can deposit money with any bank in Nigeria. You can send money through a USSD code from another bank.
- Just 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: If you’ve got a debit card from any other financial institution or traditional bank, you can use it to fund your Kuda account.
- Sign in to the Kuda app, Tap on Add Money and then click on Add by Card. For this option, 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 with your BVN (when the account is at the highest level.) Any transfer from here will cost you 10 Nigeria Naira.
Kuda bank savings
Kuda bank saving feature is a beast, with up to 15℅ interest rates every year at fixed saving, you shouldn’t let it go.
Kuda spend + save
Kuda Spend+Save allows you to save automatically every time you spend from your Kuda account. You can withdraw anytime.
Flexible savings allows you to save daily, weekly, or monthly toward a goal and get up to 10% annual interest.
Fixed Savings allows you to stash your money any time and get a 15% annual interest rate.
Once your saving plan has ended your money will be transferred to your Kuda bank account. You can even make a withdrawal before the saving 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 in securing 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).