Nigerian Digital bank Kuda has made a major expansion drive in the U.K by offering remittance products for Africans.
Due to the myriad of problems in remitting money to Africa, Kuda seeks to offer users convenience with zero transaction fee, while setting a flat fee of £3 transfer limit for £10,000.
The fintech firm disclosed that it expects most of the transactions that will take place on its platform to fall between £350 to £500.
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Speaking on the firm’s remittance expansion to the U.K, Chief executive officer of Kuda Babs Ogundeyi said, “Africans in the UK are faced with barrier after barrier when it comes to financial services, from challenges setting up accounts to prohibitive and inconsistent fees on meaningful transfers.
“They are forced to limit each transfer to a few hundred pounds to avoid losing money or face escalating exchange rates with bigger transfers. But for us, it’s not just a remittance play. There’s a user experience, convenience, and price factor involved too.
“To that end, Kuda is adopting a different approach that doesn’t involve charging transaction fees. Kuda is entering the U.K. market by setting a flat fee of £3 with a transfer limit of £10,000. Kuda expects most of the transactions that will take place on its platform to fall between £350 to £500.
“Ultimately, Kuda is building a one-stop shop for Africans, including other services outside remittance. And our plan is not just for Africa, but for Africans everywhere.
“The U.K. is the first of the ‘outside of Africa’ destinations. We plan to be in other African countries and expand the remittance services to customers there and the diaspora market.”
Unlike its remittance product, which might have been built in-house, Kuda, like many neobanks, will rely on a third party, usually a banking-as-a-service platform, to provide these financial services.
The fintech firm disclosed that it would save Nigerians millions, as well as other African countries that suffer similar expensive payments. It also revealed its plans to provide direct debits and local transfers to Nigerians in the U.K. down the line.
Last year, the firm raised a $55m Series B funding round led by Valar Ventures and Target Global which saw its valuation at $500m. This funding has so far helped the firm to expand its focus.