By TechReportersNG – Bridging Africa and the Future of Tech
Kuda Bank, Nigeria’s leading digital-first neobank, is back in the spotlight—and for good reason. Its recently released Q1 2025 performance report is not just a numbers game. It’s a signal of deeper evolution in Africa’s fast-moving digital finance landscape.
With over 7.1 million customers now onboard and a jaw-dropping ₦12.9 trillion in processed transactions for Q1 2025 alone, Kuda isn’t just growing—it’s doubling down on becoming a financial force beyond borders.
A Neobank That’s No Longer Just “Alternative”
Kuda’s growth trajectory shows that it’s more than just a challenger bank—it’s steadily shaping up to be a dominant force in African retail finance. From zero-fee banking to high-volume digital transactions, the company has scaled fast since its 2019 launch.
This Q1 report, covering January to March 2025, reveals:
- 7.1 million customers (up from ~6 million at the end of 2024)
- ₦12.9 trillion in transaction value
- Over $100 million in lending to SMEs and retail users
- Growing focus on revenue from credit and business banking
Lending Becomes the New Frontier
One key highlight from Kuda’s Q1 report is the bank’s pivot towards lending as a core revenue driver. Kuda has reportedly loaned over $100 million (₦143 billion) so far, primarily targeting small businesses and salary earners.
This move is strategic—given that lending offers higher returns than transaction-based services and positions Kuda to compete with traditional banks head-on.
Kuda says it wants to make credit more accessible, affordable, and timely. This means more products for SMEs, salary-backed loans, and possibly expanded credit scoring capabilities leveraging user behavior and alternative data.
Beyond Nigeria: Kuda’s Global Play
While the bank’s roots are firmly Nigerian, its wings are clearly spreading. Kuda has been operational in the UK and is reportedly exploring other African markets. The neobank’s aim? To build a pan-African financial ecosystem where individuals and businesses can save, spend, and borrow—without borders or friction.
The success of Kuda’s international expansion will likely depend on how well it adapts its tech infrastructure and regulatory compliance for multiple jurisdictions.
What This Means for Africa’s Fintech Scene
Kuda’s Q1 figures confirm what many industry insiders already know: the age of digital-first, mobile-native banking in Africa isn’t coming—it’s here. And Kuda is pushing the frontier forward.
While traditional banks are still grappling with transformation, neobanks like Kuda are setting the tone by innovating in credit, simplifying onboarding, and banking the unbanked.
Final Take
Kuda’s Q1 2025 report shows an African fintech that’s not just growing—but evolving. Its focus on lending, SME empowerment, and user acquisition could be a blueprint for other neobanks aiming to stay relevant in a crowded digital finance space.
As we track Kuda’s next moves, one thing’s clear: Africa’s digital banking revolution is being written—one trillion-naira quarter at a time.
