Fintech generates most of its revenue by charging consumers 10% monthly interest. Kennedy said the company uses proprietary customer-generated data to offer credit products. So, besides to get a fee-free checking account, free payments and bill payments, Umba users can access loans. These are standard features provided by digital banks in Africa, whether first deposit like Kuda, credit first like FairMoney or Carbon, or both like Fintech Farm.Ĭompany CEO Tiernan Kennedy told TechCrunch on a call that Umba leverages the credit-driven model pioneered by Nubank, where it first solves the liquidity problem for customers before selling them on a wide range of banking products. Its features include free bank accounts, bank-to-bank transfers, peer-to-peer transfers, and bill payments.
Umba said it offers a wide range of transparent and accessible financial products to those underserved by traditional banks across Africa – only 43% of the region’s population hold accounts at financial institutions. The news comes nearly two years after the fintech raised a $2 million funding round.
In the latest development, Umba, a digital banking platform operating in Lagos, Nigeria, raised $15m in Series A funding. Their main focus is to provide financial services to the underserved market, so their customers basically overlap. We’ve covered a host of these platforms in the past. As the region continues to experience rapid growth in mobile usage and the corresponding growing young population, these fintechs believe now is the right time to provide financial services to all market categories, from the banked to the unbanked. There is no shortage of digital banks in Nigeria and, in general, in Africa.
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