In Nigeria, there are about 916 licensed microfinance banks that provide essential financial services to low-income earners, unbanked and underserved groups.
With only 64% of the adult population financially included, these microfinance banks have a significant role in the country’s financial services industry.
This report highlights the top 10 microfinance banks in Nigeria that are leading the industry.
1. KUDA Microfinance Bank
KUDA Microfinance Bank is a top MFB that has taken the Nigerian financial services industry by storm.
The company started as Kudimoney, offering online-only savings and digital lending. Since then, the company has transformed to KUDA, raised over $90 million, and popularized itself among the youth as “the bank of the free.”
KUDA Bank is positioning itself as a major microfinance bank and new users are signing up every day, thanks to its simplified banking app that makes it very easy to register and get access to a wide array of banking services.
2. LAPO Microfinance Bank
Established in the 1980s, LAPO Microfinance Bank was primarily for helping less-privileged Nigerians to cope with the harsh economic realities that followed the Structural Adjustment Programme under General Ibrahim Babangida.
Since then, LAPO Microfinance has transformed into one of Nigeria’s most notable MFBs, thanks to its consistent effort to ensure that low-income households in Nigeria are economically empowered.
The company provides sustainable financial services.
3. ACCION Microfinance Bank ACCION
ACCION Microfinance Bank established in 2006.
Aims to empower micro-entrepreneurs and low-income earners.
Provides sustainable, ethical, and profitable financial services.
It offers various loans, including for small businesses, homeownership, education, and more.
Quick loans of up to N150,000 can be obtained via ACCION’s mobile banking or USSD channels.
4. Mutual Trust Microfinance Bank
Mutual Trust MFB is a top Nigerian microfinance bank.
Since April 2016, after rebranding from Mark de Rock Microfinance Ltd and changing its management, the company has been on a mission to redefine microfinance in Nigeria.
The company provides excellent financial services.
Cutting-edge technology and a highly experienced workforce are used.
This is a source of pride for the company.
Loan applications with this company take less than 10 minutes to complete, and they are analyzed and approved within 10 hours.
The company also has a very flexible repayment plan that allows customers to easily offset their loans without stress.
5. Assets Microfinance Bank
Assets Microfinance Bank empowers Nigerian businesses with its unique products.
It was established by the CBN to offer personal, business, and payday loans to Nigerians.
In addition, the bank provides savings and investment services. The company’s website offers more information on its offerings.
6. Fina Trust Microfinance Bank
Fina Trust Microfinance Bank is one of Nigeria’s leading microfinance banks, established in 2009.
It is affiliated with LOLC Group, the largest non-banking corporate entity in Sri Lanka.
The bank offers a range of services, including quick loans, salary advance, SME loans, education loans, financial asset financing, savings accounts, current accounts, and fixed deposit accounts.
7. AB Microfinance Bank
AB Microfinance Bank was established in 2008 and has its headquarters in Lagos.
The bank is described as “a socially responsible bank of choice for micro and small enterprises” and offers micro-loans, SME loans, and housing loans.
Customers can also open savings accounts, current accounts, and fixed deposit accounts and have access to mobile banking services.
8. VFD Microfinance Bank
VFD Microfinance Bank, also known as VBank, is a subsidiary of VFD Group and has been marketed as the go-to MFB for the trendy at heart.
The bank’s services are fully digitized, and the VBank mobile app is one of the most advanced and streamlined to get customers more.
The bank is focused on digitization and offers a range of services, including savings accounts, current accounts, and loans.
9. Sparkle Microfinance Bank
Sparkle Microfinance Bank was launched in 2019 by the former MD of defunct Diamond Bank Uzoma Dozie.
The bank’s mission is to democratize access to finance for small businesses and individuals.
The bank heavily relies on technology, and customers can access a host of financial services through the Sparkle mobile app.
10. BoI Microfinance Bank
BoI Microfinance Bank is a subsidiary of Nigeria’s oldest development bank, the Bank of Industry.
The bank caters to SMEs and low-income earners. The bank offers a variety of services to these groups.
Besides loans, BoI Microfinance Bank also provides savings deposit services.
The bank’s commitment is to encourage entrepreneurship through the provision of easy loans.
The company was established in 2002 and has the financial backing of the Bank of Industry, making it well-positioned to serve customers.
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