Nigerian fintechs race to get MFB licenses as Paystack, Flutterwave lead banking push

Paystack acquired Ladder Microfinance Bank in January, Flutterwave secured a national MFB licence through buying Mono in April, and Sycamore plans to build a ₦40 billion deposit base after acquiring an MFB in May 2026. These moves let fintechs earn interest from loans instead of just transaction fees from moving money. CBN rules require MFBs to lend at least 80% of deposits, with 60% of funding from savings accounts and 80% of loans going to microloans (max ₦1M per loan). National MFBs need ₦5B paid-up capital. This shifts fintechs from payment processors to deposit-taking institutions that must actively lend money back into the economy rather than hoard funds. With Sycamore targeting ₦40B in deposits and Flutterwave already processing ₦412 trillion in payments annually, these fintech-backed MFBs could significantly expand access to formal credit for small businesses and households. Will you consider keeping savings with these fintech-backed MFBs now that they're regulated like traditional banks but focused on serving small businesses and households?

SOURCE: https://techcabal.com/2026/06/29/nigerias-fintechs-built-payments-now-theyre-becoming-banks/