Kuda is set to compete with other African-focused fintech startups, such as LemFi, Eversend, and Nala, in operating as global neobanks for Africans in the diaspora. This comes after it’s announcement of presence in the Tanzanian and Canadian markets.
One of the acquired licences will allow Kuda Bank to offer remittance and multi-currency wallet services to Africans living in Canada. The second, a Tanzanian Payment Service Provider (PSSP) licence, will allow Kuda to offer similar services to its Tanzanian customers.
This is not the first time Kuda has tried its hands on the booming remittance market. Along with five other banks, on Friday, January 13, 2023, Kuda obtained a license from the State Bank of Pakistan (SBP) to run a digital bank in the country.
The remittance market has become more attractive to investors as more Nigerians and Africans seek greener pastures abroad. In 2022, Nigeria was one of Canada’s top immigration sources, welcoming about 22,085 Nigerian immigrants, making up 5.05% of Canada’s total number of permanent residents.
Although, in 2022, the fintech secured a payment license in the UK, which was followed by the launch of a subscription remittance product with a transfer limit of £10,000 and a flat fee of £3. But it has been discontinued.
At a time when foreign exchange rates are affecting startup profits, Kuda’s plan to prioritise markets such as Canada, where Nigerian migrants are increasingly flocking, will enable it to establish a thriving global remittance business and increase its foreign exchange revenue. The microfinance bank also has the opportunity to spread its influence around the globe.