Ogundeyi: UK’s Launch Strategic to Africans in Diaspora

CEO, and Co-founder, Kuda Technologies, Babs Ogundeyi, speaks on the expansion plans of Kuda, its launch in the United Kingdom, and the strategies to provide access to financial services for Africans everywhere. Nosa Alekhuogie presents the excerpts:  

Kuda recently launched in the UK. What form is Kuda taking in the UK and what kind of services are available to UK residents?

Kuda Technologies Limited (Kuda) is operating in the UK through its subsidiary, Kuda EMI Limited. As Kuda EMI, we offer UK-based financial services including remittance support, direct debits and local UK transfers. So residents can have a card, Apple Pay, Google Pay, receive salary in their account and have access to other traditional functionalities on the Kuda App among other things. We are not operating as a bank or like our subsidiary in Nigeria, but will be issuing e-money in the UK, which is the equivalent of mobile money, in partnership with an Electronic Money Issuer, licenced by the Financial Conduct Authority in the UK.  In the near future, we intend to introduce different flavors of our savings product, like we have in Nigeria; like the equivalent of spend and save, bill payments, and so on.

Why launch in the UK, are there plans for other markets?

Our mission is to bank Africans everywhere, both Africans in Africa and Africans in diaspora. The UK is one of the largest diaspora markets as far as Africans are concerned.  For example, the UK is the second largest destination that Nigerians migrate to after the United States. So considering the relationship that Nigerians have with the UK, through their friends and families, coupled with the fact that Kuda Technologies is headquartered in the UK – launching in the UK is strategic.  Within our roadmap, we intend to expand into other African markets as well as other diaspora markets that have a huge African population.

Can you shed more light on the remittance service, and what the service is all about?

Our remittance service is one of the major products, which we are offering residents in the UK. It is part of our grand plans in connecting Africans in the diaspora. It is a norm to always send money home to friends and families, for upkeep, school, and a lot of other reasons, so remittance is one way Africans stay connected to home.  For example, remittance accounts for nearly one per cent of Nigeria’s total Gross Domestic Product (GDP).  This shows how important the service is to Nigerians.  So what we aim to do is to offer this service in such a way that it will drive prosperity for both the sender and the receiver.

How exactly does it work and what makes it different from other remittance services out there in the market at the moment?

In terms of the way it is structured, we have made it simple and accessible, with several options for senders and receivers. We offer direct account transfers, cash pick-ups and transactions are in USD in compliance with applicable regulations.  Our big difference is more around our price. Regardless of the size of the transaction, we are only charging a flat fee of £3, with the maximum transaction per time being £10,000 and the minimum being £10.  So, compared to other services, this will save UK Nigerians millions of pounds. There are no further charges to the flat rate. I think that for us, this brings a lot of transparency into the entire remittance process. Like practically everything we do, this is also driven by our three pillars of – availability, accessibility, and affordability.  We want to make financial services available to every African, with a high level of accessibility and make it something they can easily afford.

You mentioned a £3 flat rate as the fee for each remittance transaction, against the context of the average remittance fees. What informed your offer at Kuda?

It is in consideration for how much it truly costs to process these kinds of transactions. So from a financial point of view, we are covered, and from a purpose point of view, it’s in alignment with our mission to provide financial services to every African, everywhere in the world along the lines of our three pillars of availability, accessility, and affordability. These pillars have been instrumental to our growth in Nigeria and we are positive about the success of Kuda in the UK as well.

Let’s talk about the Money App for Africans. Is this a new strategic positioning born out of a shift in business strategy?

We understand that people want to do more with their money. With this understanding, we have continuously improved on the Kuda App, such that the same app will have different functionalities that can address the financial needs of Africans in any market we are present in. For example, residents in Nigeria, with their Nigerian account can access functionalities for the Nigerian market. They have access to debit cards, can subscribe for merchant services like Showmax, make cardless payments, shop globally at popular Kuda merchant partners with gift cards, even register for JAMB exams. For businesses, they can access the Kuda Business Banking Services, which comes with special features tailored to support growing businesses in Nigeria.  However they will not have access to features for the UK market, without a UK account. On the same app, UK residents will have access to features for the UK market, but will not have access to the features for the Nigerian market without a Nigerian Kuda account. Consequently, if you are a Nigerian and a UK customer, after successfully completing the on-boarding requirements for both countries, you will see functionalities for both the Nigerian and the UK market. This will also apply as we expand into other markets.  We are building one app for Africans anywhere they are, that satisfies their myriad of financial needs. This is the shift and it’s been part of the grand plan from the beginning. We are becoming a one-stop-shop for financial services. Put differently:  all your money and financial needs in one App, anywhere and everywhere.

What kind of features have been introduced or will be introduced in the Kuda App that makes it a one-stop-shop for financial services?

We now see ourselves as more than a bank. We see ourselves as a driver of financial inclusion and an enabler that helps people do more with their money.  As we expand, the App is increasingly becoming a place where you can have all your money and access different financial services in one app.  For instance, in addition to banking services, under the Kuda group we are launching investments in Nigeria, where people can purchase stocks as a form of future investment.  We have introduced different types of savings plans and different ways to save. We are also going to launch more financial products over the next twelve to eighteen months, and we are doing this in the other markets as well.  Eventually, if you want to insure, or save, or invest, you can do all of these and more through one app.

In just a little over three years, Kuda has acquired over 4.5 million customers riding on ‘the Bank of the Free’. How do you see this new approach contributing to financial inclusion and expansion in Africa?

When you talk about financial inclusion, it goes beyond having a bank account. People that are fully excluded don’t have any financial product. But there are also lots of people who are partially excluded. For example, you can have a bank account, but have never taken a loan, never invested, never had insurance, or pension and so on. We don’t want to stop at banking the underbanked. We want to financially include more people and being the money app that serves as an enabler for various financial services, can help us achieve this.