Nigeria based digital bank Umba starts operations in Kenya
Umba, a pan-African digital bank that last year purchased Kenya’s Daraja Microfinance Bank, has formally begun operating there. Despite solely operating in Nigeria, the financial institution has its sights set on several African markets.
With this change, Umba is now allowed to provide a full range of banking services in Kenya, including current accounts covered by the Kenya Deposit Insurance Corporation (KDIC), interest-bearing savings accounts, fixed deposit accounts, loans, and payments.
Irish businessman Tiernan Kennedy and former Munster rugby player Barry O’Mahony created Umba in 2018. The startup wants to make it simpler for customers and small businesses to deal with banks and mobile money networks by offering a clear, affordable tool that empowers users to manage their finances.
Users receive a current account with no fees, inexpensive payments, billpay, and loans. Clients can obtain and repay loan products using their mobile phones, and the lender uses the proprietary data provided by customers to propose credit products and make money.
CEO of Umba Tiernan Kennedy. “We have a great potential to introduce Umba to the Kenyan market. The ability to stand on our own two feet and develop the bank into a significant player in the market has made the extraordinarily difficult and drawn-out process of making this acquisition entirely worthwhile.
Leading VC firms including Lachy Groom, Lux Capital, and Palm Drive Capital, as well as influential angel investors like Tom Blomfield, the founder of Monzo, and leaders from NuBank, support the sector. Additionally investing in the bank and enthusiastically supporting the debut in Kenya is Chandaria Capital.
To provide the services that clients desire in Kenya without the exorbitant costs they have been paying to the legacy companies, the country needs a great digital bank. The greatest services will triumph in this situation, and we have faith in our team to deliver,” Kennedy added.
