Infobusstop.com
Fast growing authoritative information portal in Africa,

Why is Kuda Better Than Other Banks? Find out all the reasons

A lot of Nigerians currently make use of Kuda bank, others do not, while some others are confused as to how the bank works. As a fact Kuda is different from traditional Nigerian banks as it’s a digital-only bank. This is why you won’t see bank buildings bearing “Kuda” as with other traditional banks. 

From user experience, Kuda is one of the new age banks that’s changing how banking is done in Nigeria. If you’ve heard about Kuda before, I’m sure you’ve contemplated signing up and using the mobile bank. Well, in this article, we’ll be covering the advantages of using Kuda and at the end, you’ll know if Kuda is a bank you should use or not. 

About Kuda 

Kuda described itself as the bank of the free. As mentioned earlier, it’s a digital-only bank. In other words, you can only access the bank’s services via digital devices including mobile phones and laptops.

Kuda is available via web and via mobile applications. With a quick search on the Google Play Store or Apple App Store, you can download the mobile app depending on your device type. Kuda is described as the bank of the free because it gives customers more banking freedom compared to Nigerian banks. 

Note that Kuda deposits are insured by the NDIC and the bank is fully licensed by the Central Bank. Hence, it’s very safe to bank with Kuda. 

Advantages of Kuda over other Nigerian Banks 

This is the main reason why many Nigerians are opting for Kuda. The bank has very notable advantages over traditional Nigerian banks. Some of these advantages include: 

  1. Ease of opening account

You can simply visit the Kuda website or download the mobile app and create an account in minutes. This is a major improvement compared to traditional banks where you have to visit the bank, fill forms, submit passports, IDs, etc and then wait hours for the application to process 

  1. Free Transfers

All Nigerian commercial banks charge for transfers. Most of them also include VAT and depending on the amount, you’ll be paying from N20 to over N50 per transfer. This is different from Kuda. Kuda lets you perform 25 free transfers every month. Once you exhaust your free transfers, you’re charged a flat fee of just N10 per month. 

  1. Free Debit Card

It’s no news that Nigerian banks charge a flat rate of N1,000 for debit cards – even if you’re a new customer. In addition, if you can’t pick up your card at the bank, you’ll have to pay for delivery for it to be sent to you. From time to time, banks also charge you for card maintenance. This can be about N50 every 3 months. 

With Kuda, you pay N0 to get a debit card. You also pay N0 for the card to be sent to you. If you’re wondering, the card is a normal card like that which you get from other banks. You can use it at ATMs, POS machines, online payments, and all the rest. Also, Kuda never charges a maintenance fee. If you think about it, commercial banks charging maintenance fees make no see 

  1. Savings Interest 

Banks are not just for keeping money. You can also save money – without using it for a particular period – and earn interest. Commercial banks do let you save money and earn interest after a year. However, the interest rate is usually not more than 5%. If you know any Nigerian bank offering more than 5% interest in savings, you can let us know in the comments. 

When you use the Kuda save option, you stand a chance to get up to 15% interest on your savings. About 3x what you get with other banks. Practically, if you save N1 million with other banks, you earn N50,000 as interest. Meanwhile, when you save N1 million with Kuda, you can earn N150,000 as interest.

  1. Alerts 

Just like other banks, Kuda sends you notifications whenever there’s a transaction on your account. However, with other banks, you pay for Alert charges. In other words, you pay for the airtime and data your bank uses in sending you alerts. 

There’s no such thing on Kuda. Kuda sends you instant notifications on all your transactions and they don’t charge you any kobo. 

  1. Budgeting 

The Kuda mobile app has a Budgeting feature that you won’t find in the mobile apps of most other Nigerian banks. The Budget section gives you ultra transparent insights on your spending. You can create different budgets, view how much you’ve spent month to month, know where money is coming from, and limit your expenses. Most notably, the section features visual data which makes it easier to understand everything. 

  1. Loans (Borrow) 

You can agree that getting loans from most Nigerian banks is a hassle. Qualifying for loans requires a lot and you’ll have to complete paperwork and all. With Kuda Overdraft, you can get quick short-term loans without stress. 

You only need to have been making transactions with your account. In fact, the bank will automatically offer you a short-term loan without you asking for it – it’s up to you to accept or not. 

Conclusion 

You’ve seen all the advantages of using Kuda over other banks. So long as you’re a bank customer, you can easily confirm the facts with your own bank. Hence, I’m sure you now understand why many people opt for Kuda and you can now decide whether to use the bank or not. 

Loading...