Flutterwave gets microfinance license, expands into lending and deposits
Nigeria’s Flutterwave has received regulatory approval to operate a microfinance unit, allowing it to offer lending and deposit-taking services for the first time. Previously limited to payments and money transfers, the fintech giant can now directly access national clearing systems, streamlining transactions without relying on commercial banks. Founder and CEO Olugbenga Agboola stated the move will enable “faster, more reliable financial services” and support long-term growth.
This expansion intensifies competition in Nigeria’s digital banking space, where Flutterwave already faces rivals like Moniepoint (processing 26 million daily payments for 10 million+ users) and PalmPay (15 million daily transactions with 35 million users). Big telcos MTN and Airtel have also entered through MoMo PSB and SmartCash, targeting the multi-trillion naira market.
Digital banks are rapidly winning over Nigeria’s underserved population as traditional banks struggle with legacy bottlenecks. A Moniepoint study showed over 27,000 clubs, bars, and lounges already process digital transactions at three per second, highlighting the shift from cash to digital in the informal economy.
Flutterwave’s planned IPO received a boost after acquiring open banking firm Mono Technologies, positioning it as a full-stack financial infrastructure company ahead of a potential listing on the Nigerian Exchange and NASDAQ.
With Flutterwave now able to offer loans and savings, does this make it a more attractive option for your banking needs, or will you stick with existing neobanks or traditional banks?