All Things Fintech in Africa

How To Open Kuda Bank Account On Phone: All You Need To Know

In this article you will discover how to open Kuda Bank account on phone and other handy information.

Founded in 2016, Kuda Bank started out as “Kudimoney” which roughly translates to The Free Bank. They were solely an online lending and deposit platform. However, with the sheer hard work and commitment of the ownership – Babs Ogundeji and Mustapha Musty aided with several successful rounds of funding, this hitherto-limited organization has now grown into Nigeria’s first full-blown totally-digitized bank.

How To Open Kuda Bank Account On Phone

Kuda Bank, incorporated as Kuda Microfinance Bank, actually offers its consumers a grand ushering into the ‘new era’ of new banking through its fully digitized platform. It has also captured the hearts of many people from the younger generation ‘Gen Z’ who already have the appetite for anything digital. Besides, fees and charges are set to become things of the past with banks like Kuda around.

Kuda actually partners with three top Nigerian banks for different essential services: Access Bank, Zenith Bank, and Guaranty Trust Bank. Access bank, specifically, handles the debit card issuance arm.

How To Open Kuda Bank Account On Phone

Kuda registration process is simple. As a virtual bank, Kuda sign up is done online. You must be a Nigerian who has turned 18 and above. This is how to create Kuda bank account:

  • To start Kuda bank account opening, you need to download Kuda bank app either on App Store or Google Play
  • You will be asked to fill in a few personal details including your name, email address, and phone number. At the end of this step, take a clear image of your face. The photo is required solely for identity verification.
  • Order your Kuda ATM card, which will be delivered to any location within Nigeria within two weeks. With this Kuda Bank card, you can safely make online payments, withdraw cash from various ATMs, and purchase goods both locally and internationally. You can also apply on Kuda app for Kuda bank virtual card.
  • After finishing Kuda bank registration, you will be able to save money, make money transfers, buy airtime and pay various bills with ease.

Major FAQs on Kuda Bank

Below are a few of the FAQs on Kuda Bank that will make you understand the products and services better.

What fees does Kuda charge?

Kuda Bank gives you 25 free transfers every month if you sign up with your Bank Verification Number (BVN). Extra transfers will cost you 10 naira each.

Everything else is free – using your account, using your Kuda Card and withdrawing cash from Zenith, Access, and GTB ATMs. Zero card maintenance charges.

How To Open Kuda Bank Account On Phone
Why is Kuda different from other banks?

Kuda does not have physical branches, like the traditional banking system. Kuda App runs entirely on the customer phone or browser, just have a connection to the internet. Kuda saves a lot of money that would have gone into operational costs just by running virtually.

What type of account does Kuda operate?

Kuda has 3 different tiers of accounts. All identified with the amount of money it can hold at any given time, due to level of documentation and ‘Know Your Customer’ (KYC) involved in running them.

Tier 0 (T0)
An account that doesn’t have a confirmed BVN (Bank Verification Number) and a valid ID (a driver’s license, voter’s card, international passport, national ID card or NIN slip) is on Tier 0.


Tier 1 (T1)
An account that has a confirmed BVN but doesn’t have a valid ID attached to it is on Tier 1.


Tier 3 (T3)
An account that has both a confirmed BVN and a valid ID attached to it is on Tier 3.

Documentation Reqd.Min. BalanceMax. Deposit (at a go)Max. BalanceInterbank  TransfersMax Transfer (at a go)
Name, Contact details050,000300,000No 10,000
Name, Contact details, Valid ID050,000300,000Yes10,000
Name, Contact details, Valid ID, BVN0Any amountAny amountYes1,000,000

Learn more about our account levels here.

Is Kuda bank registered?

Yes, Kuda has a microfinance banking license from the Central Bank of Nigeria (CBN). Their CAC number is RC 796975.

So how does Kuda make profit?

Kuda makes money by using collective deposits to make investments and give credit as well. 

Kuda bank also makes money from commission earned on airtime purchases and from service fees sellers pay them when customers shop with the Kuda Card.

Does Kuda Bank give Overdraft loans?

Yes, Kuda bank gives overdraft money loans and you’ll be able to get one automatically if you use your Kuda account regularly.

What do I need to open a Kuda bank account?
  1. You must be at least 16 years old 
  2. An email address and a phone number
  3. BVN
  4. Valid government-issued ID
How do I open an account with Kuda bank?

Go download Kuda on Google Play (for Android) or the App Store (for the iPhone) and complete the steps that follow.

How do I qualify for Kuda Bank Overdraft?

Just make sure you have an active standard Tier 0 account with Kuda Bank. That is, BVN and valid ID must have been uploaded. You must also be doing frequent transactions.

What is the interest on Kuda Bank Overdraft?

Daily interest rate of 0.3% of the amount you borrow.

What is the maximum amount I can borrow on Kuda Bank Overdraft?

N50,000

Why does Kuda need my BVN?

Biometric Verification Number (BVN) is a unique 11-digit ID issued by CBN/NIBSS to uniquely verify the identity of each Bank’s customer for ‘know your customer’ (KYC) purposes. So, yeah it’s a regulatory requirement.

Is there a minimum balance on a Kuda account?

No

Is my money safe with Kuda?

The Deposit Insurance Fund of the National Deposit Insurance Commission (NDIC) is expected to pay you up to 200,000 naira as compensation if you make a successful insurance claim on your deposit with Kuda bank.

How will I get my Kuda bank debit card if there are no branches?

Kuda delivers your Kuda Card to you anywhere in Nigeria. Learn more about cards here.

How To Open Kuda Bank Account On Phone
How many ATMs does Kuda have?

Remember that Kuda bank partners with at least 3 top banks in Nigeria – Zenith, Access, and GTBank. You can make your first 3 withdrawals of the month at these banks free of charge, just like their own customers. Zero card maintenance charges.

How to deposit  money in a Kuda bank account?
  1. Transfer from any Nigerian bank with a bank app, USSD, or through internet banking.
  2. Add money to your account using a debit or credit card. Tap Add Money on your Kuda dashboard and choose the Card option. Note: Adding money to your account by card is free up to a total of 100,000 naira. After that, Kuda will no longer cover the third party payment gateway fee.
  3. Cash can be deposited at any of Kuda bank’s partner-banks (Zenith, GTBank, or Access bank). Tap Add Money on your Kuda dashboard and choose the Cash Deposit option.
Does Kuda send account statements?
helpline-contact-kuda

A customer can request an account statement for a specific time period.

Simply tap your profile picture on the app, scroll down then tap Request your account statement.

Where is Kuda bank’s Head Office?

1st floor, Moorehouse, 151 Herbert Macaulay Way, Yaba, Lagos. Visits are by appointment only, though.

What should I do if I need help?

Send an email to [email protected]

1 Comment
  1. […] challenger neobank, valued at US$500 million, is fully licensed by the CBN. Although Kuda is based in London, it is currently focused on the Nigerian market. It raised US$80 million across […]

Leave A Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.