Moniepoint, a leading Nigerian fintech unicorn, is reportedly in talks with the Central Bank of Nigeria (CBN) to secure a commercial banking license, according to sources close to the company.
A commercial banking license would represent a significant step for Moniepoint, underscoring its maturity and willingness to adapt to Nigeria’s evolving regulatory landscape. Given the CBN’s heightened regulatory scrutiny of fintech since December 2023, obtaining this license could position Moniepoint as a stable and compliant payer in Nigeria’s dynamic financial ecosystem
This move is poised to mark a significant milestone in the company’s journey since its inception, strengthening its retail banking operations and expanding its share of Nigeria’s financial services market.
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A commercial banking license would enable Moniepoint to do the following:
• Broaden its product suite: Offering services like foreign exchange transactions and treasury operations, which have proven to be profitable for established banks.
• Expand its geographical reach: Opening physical branches across Nigeria, particularly in areas where traditional banks have limited presence.
• Gain a competitive edge: Becoming the first Nigerian fintech to secure a commercial banking license, positioning itself ahead of rivals like OPay.
With a commercial banking license, Moniepoint would also become the first Nigerian fintech to enter this exclusive category, gaining a competitive advantage over other fintech firms like OPay, Palmpay, and Kuda, amongst others.
The company’s rapid growth, particularly in agency banking where other competitors such as Firstmonnie, Paga, and Opay operate, has positioned it as a major player in Nigeria’s fintech industry. Also, its focus on technology and a strong agent network has enabled it to attract a significant customer base, surpassing even some established commercial banks.
As it prepares for the licensing process, Moniepoint has significantly invested in compliance and fraud monitoring. In September 2024, the company introduced a Multi-Factor Authentication, MFA on its mobile and web applications, designed to simplify the payment experience, increase transaction success rates, and significantly enhance security for consumers and businesses.
Notably, the company has continued to strengthen its board with the hiring of experienced professionals. Earlier this month, Moniepoint hired ex-Stanbic IBTC CFO Bayo Olujobi as CFO of the company.
Moniepoint recent application of commercial banking license if successful, could see the company disrupt the traditional banking landscape in Nigeria. By leveraging technology and a customer-centric approach, the company aims to offer innovative financial solutions and enhance the overall banking experience for Nigerians.
The capital requirement for a regional license is set at $30 million, which is well within Moniepoint’s reach, following its recent $110 million funding round that elevated it to unicorn status. In addition to the financial commitment, Moniepoint will need to meet regulatory infrastructure requirements, including setting up physical branches equipped with strong rooms, loading bays, and banking halls.
If granted, the commercial bank license would allow Moniepoint to bypass the geographical and operational restrictions of its current microfinance bank license, which limits its expansion outside Nigeria’s South-West region and restricts its range of services.