Kuda has cleared one of the biggest regulatory hurdles in its history, securing a national microfinance banking licence from the Central Bank of Nigeria that fundamentally changes what the digital bank can now do on the ground. The approval permits Kuda to expand its physical operations across the country, open branches and offer a broader range of services previously restricted under its former licence category. For a bank that built its entire identity around being mobile only, the shift signals a meaningful pivot toward the kind of hybrid physical and digital presence that established Nigerian banks have relied on for decades.

Founded in 2019 by Babatunde Ogundeyi and Musty Mustapha, Kuda built its early reputation as a fully digital challenger bank aimed at giving Nigerians banking without the branches, fees, or paperwork typical of traditional institutions. That mobile first model helped it scale rapidly, and the fintech has previously disclosed serving millions of customers across Nigeria and the United Kingdom, with backing from major investors including Target Global, Valar Ventures and SBI Investment. The new licence does not abandon that digital core, but it does give Kuda regulatory room to build physical touchpoints, something the company had been unable to do under its prior operating structure.

The timing lines up with Kuda's broader push to deepen its business banking and cross border offerings, areas where physical presence and expanded licensing can meaningfully improve trust and functionality for SME customers managing more complex financial needs than individual account holders. As Kuda continues building out tools for businesses alongside its consumer app, the ability to operate more like a full service microfinance bank, rather than a purely app based product, positions the company to compete more directly with both traditional banks and other digital first rivals chasing Nigeria's underbanked SME segment.

For a market where regulatory approval often takes years and frequently stalls fintech ambitions entirely, Kuda's new licence represents tangible momentum at a moment when Nigerian digital banks are under increasing pressure to prove sustainable, diversified business models beyond simple free transfers and basic savings products. With physical expansion now legally possible and cross border services continuing to mature, Kuda looks positioned to test whether its next phase of growth lies not in staying purely digital, but in blending the convenience it built its name on with the infrastructure that comes from being recognized as a fuller, more established financial institution.