One of the needs driving change in the banking industry is convenience. The ability to bank from the comfort of your home or office. Well, virtual banking tries to do just that. While virtual banking is not yet widespread in Nigeria, Kuda Bank offers banking services through a smartphone app. In this article, you can read all the relevant details about how the Kuda Bank works so that you can easily create a Kuda Bank account.
Who Owns The Kuda Bank?
Kuda Bank was founded in 2018 by Babs Ogundeyi (CEO) and Musty Mustapha (CTO). It is registered as a Kuda Microfinance Bank with offices in Lagos, Nigeria, and London, UK.
What is Kuda Bank and how is Kuda Bank different from other banks?
Kuda a virtual bank. This means that it is completely online. It does not have a physical office like the common financial institutions in Nigeria. All you need to manage your Kuda bank account is a smartphone with an internet connection. However, like other banks, it provides its customers with a debit card (Visa). The card is usually delivered anywhere in the country. In addition to having a physical debit card, the app allows you to create a virtual Kuda card to pay for goods and services online.
Benefits of the Kuda Bank
Kuda Bank is an ideal bank for individuals in Nigeria who are looking for a financial institution with the following features:
- Easy access to all major banking services. All you need is a smartphone with an internet connection and you can visit your couch from the comfort of your home or office.
- No fees when you withdraw money from one of the partner bank’s ATMs.
- No account management fees.
- Free transfers to other banks.
- No fees for depositing money.
- Up to 15% annual interest.
- No minimum balance.
When you open a Kuda account with your name and phone number, you will simultaneously receive a basic account with a maximum balance of 300,000 naira, a maximum deposit of 50,000 naira, and a maximum transfer of 20,000 naira. When you add your Bank Verification Number (BVN) and government-issued ID (such as your driver’s license, ID card, or international passport) to your Kuda profile, your account will be upgraded to a full account without restrictions.
How To Open A Kuda Account
Kuda’s registration process is simple. As a virtual bank, you can register online with Kuda. You must be a Nigerian who has reached the age of 18. To create a Kuda bank account:
- To open a Kuda bank account, you need to download the app from App Store or Google Play
- You will be asked to enter some personal information such as your name, email address, and phone number. At the end of this step, you will have a clear view of your face. The photo is only needed for identity verification.
- Order your Kuda ATM card and it will be delivered to any location in Nigeria within two weeks. With this Kuda debit card, you can safely pay online, withdraw cash from various ATMs and buy goods at home and abroad. You can also apply for a virtual Kuda bank card in the Kuda app.
- After completing Kuda bank registration, you can save money, transfer money, buy airtime and pay various bills with ease.
Does Kuda Bank need BVN?
Can I open a Kuda account without BVN (Bank Verification Number)? Yes, it is possible to open a Kuda bank in Nigeria without BVN, but there are certain restrictions on the account. An account that does not have a confirmed BVN and valid proof of identity (driver’s license, international voter card passport, national ID card, or NIN proof) falls under level 0. 1. Restrictions on this account include not being able to deposit money into your account with a card, receiving a limit of 50,000 naira, inability to transfer money, pay bills and buy airtime. The maximum balance for this account is 300,000 naira.
Where can I withdraw money with my Kuda debit card?
Kuda Bank partners with Access Bank to make it easier for their clients to withdraw funds in different parts of Nigeria. As such, you can withdraw money from any of the 3,000 Access Diamond Bank and Access Bank ATMs using a Kuda Bank ATM card. As part of its efforts to reduce fees for customers, Kuda does not charge customers for cash withdrawals.
Kuda Bank Fees
One of the operational strategies of this virtual bank is to reduce some of the costs that traditional financial institutions impose on customers. Fortunately, Kuda’s bank charges are transparent. For example, as long as you have signed up with your BVN (Bank Verification Number), you will benefit from 25 free money transfers every month. If you don’t have BVN, your free transfers will be 2 within a month. Additional transfers will be subject to a Kuda transfer fee of 10 Naira. All other services are free. This includes Kuda Bank signup, virtual bank account, card maintenance, monthly maintenance, debit/credit notifications, withdrawal from Kuda Bank ATMs, and using your Kuda debit card to make payments.
Is the Kuda ATM card free?
The Kuda ATM card is free. However, you must have at least 1,000 nairas in your Kuda account to order and receive one. This is not a fee, but a minimum credit for the card application. The card comes for free and there are no monthly fees.
International Kuda Card
Kuda bank account holders can apply for an international Kuda card. Once you have updated your Kuda account by confirming the BVN (Bank Verification Number) and adding a valid ID to your Kuda profile, you can apply for the International Kuda Card. When you receive your international Kuda Card, your current card will be deactivated. You can use this card internationally.
Kuda virtual master card
Creating virtual Kuda maps on Kuda is free. The cards work online in Nigeria where Mastercard is accepted.
How to Create Kuda Virtual Card
- Open Kuda and tap Card in the menu at the bottom of the screen.
- Tap Get a Card.
- Tap Get Virtual Card.
- Confirm with your transaction PIN, your fingerprint, or your face ID.
Kuda Virtual Dollar Card
There is currently no kuda dollar card. However, Kuda customer support has told SatoshiFire that major improvements are being made to the Kuda app and that the virtual Kuda dollar card will be launched soon.
How do I deposit money into my Kuda bank account?
There are several ways you can add money to your Kuda bank account. This includes:
- Through any bank in Nigeria that has internet banking or banking app.
- With a credit or debit card. To do this, open the Kuda app. Select “Add money” and then click “Add with card”. With this option, depositing amounts of up to 100,000 naira is free. The fees for everything else depend on the third party involved.
- Depositing money at one of Kuda’s partner banks. To do this, open the Kuda app and select “Add Money”. Click on “Add by Deposit” and follow the instructions on the screen.
How do I transfer money from my Kuda bank account?
- Click on Payments
- Choose Send Money
- Fill in the requested information
How to transfer money from GTB to Kuda Bank
- You can send money offline from your GTBank account to a Kuda account.
- Dial *737*50*Amount*416#.
- Enter the Kuda account number and confirm the transfer with *737# PIN.
Kuda Bank Limit
Kuda’s bank account limit depends on the type of transaction. Kuda’s bank transfer limit is 1 million naira for a single transfer. Kuda Bank’s spending limit through POS terminal is 500,000 naira while Kuda Bank’s ATM withdrawal limit is 30,000.
Is Kuda Bank Legitimate?
You may be wondering, “Is Kuda Bank safe?” Kuda Bank is safe and legit. It is licensed by the Central Bank of Nigeria. The bank uses high-security encryption that is used by the best banks around the world. Kuda Bank secures every deposit you make to your Kuda account. For example, if a disaster occurs and the bank loses its money, the National Deposit Insurance Commission (NDIC) deposit insurance fund has to pay you 200,000 naira as compensation.
Final Thoughts on the Kuda Bank Review
While virtual banking is not widely accepted in Nigeria, there are established companies that are trying to transform the country’s banking sector. The Kuda Bank is one such institution. In addition to reducing or eliminating some of the costs traditionally associated with financial institutions, this virtual bank provides convenience to its customers. For example, you can open a Kuda account online from the comfort of your home. All you need to access the essential banking services is a smartphone with an internet connection.
