Pan-African fintech giant Flutterwave has secured a national microfinance banking licence in Nigeria, marking a significant shift from payment processing to full-service banking in its largest market.
The licence, obtained through Flutterwave’s acquisition of open banking startup Mono in January, enables the company to hold customer deposits and issue loans directly for the first time. This strategic move positions Flutterwave to compete directly with traditional banks by offering a complete suite of financial services including savings accounts, credit facilities, and digital banking solutions.
“$40 billion has gone through our platform. That is not double-counting, and not one cent was retained,” said CEO Olugbenga Agboola, who founded the company in 2016 after working at PayPal and Google Wallet. “With this new phase, money now stays in our platform. Margins get better.”
Nigeria represents Africa’s largest fintech opportunity with over 200 million people and a rapidly growing digital economy. However, less than half of Nigerian adults have access to formal banking services, creating massive room for digital-first financial institutions.
Flutterwave Bank will operate as a subsidiary with its own board and leadership team. The company already processes payments for major international firms including Uber, Microsoft, and Netflix.
The acquisition includes Mono’s open banking infrastructure, which enables Flutterwave to recover funds across customers’ linked bank accounts, reducing loan risks and improving collection efficiency in Nigeria’s challenging credit environment.
Source: TechCabal
Photo: TechCabal
