Is using Kuda Bank safe?
With the advancement of technology in the Fintech sector, digital banking is now a norm.
Digital banking is banking on a digital platform like the web or application. It involves carrying out banking transactions without the use of physical banking structures, materials and processes.
Kuda Microfinance Bank is one of the most popular digital banks in Nigeria.
However, sceptical users and non-users can’t help but wonder if it is safe to keep their money there.
Why? Is it not a real bank?
Well, their worry is understandable. This is because digital banks like Kuda fully operate digitally. This means that, unlike conventional banks, it does not have many branch offices in different states in the country. They do not need a physical office at all to operate.
Does this mean they are not a real bank?
No, it doesn’t.
Is Kuda safe?
Yes. That’s like asking if your money is safe in the bank. The NDIC provides a safety net for depositors in Nigerian banks, including those who use Kuda. So if a bank declares bankruptcy or closes down, the deposits of its users are safely insured by the NDIC.
So you need not worry.
Like other banks, Kuda bank makes money by using collective deposits to make risk-free investments. They do what other banks do to make money except for the exorbitant fees collected from customers.
Further, Kuda is sustainable as it reduces expenses by having just one office and few employees.
Also, the bank does not operate anonymously. The CEO of Kuda Bank is Babs Ogundeyi, a graduate of Brunel University, London.
Although it doesn’t have physical branches in various states, Kuda has its Head office at 151, Herbert Macaulay Road, Yaba, Lagos.
Kuda also runs on the same policies and protocols as conventional banks. For instance, it requires you to have a Bank Verification Number (BVN) linked to your account. The same BVN is used in all your accounts in all your traditional banks.
It also runs on the same high-security encryption other bank apps use.
Why choose Kuda?
If Kuda is similar to other banks what makes many people choose it over conventional banks?
FIND OUT HERE