Sycamore fintech acquires MFB licence, targets ₦40 billion deposits

Sycamore, a Nigerian fintech, has acquired a microfinance bank licence through purchasing a Kano-based MFB, expanding beyond digital lending into full banking services. CEO Babatunde Akin-Moses revealed deposit mobilization will become critical as the company aims to build a deposit base exceeding ₦40 billion ($29.13 million) this year.

The acquisition removes Sycamore's dependence on third-party banks and gives direct access to payment rails, potentially reducing funding costs that could translate to cheaper loans. The company currently serves 400,000+ users across 22+ states and disbursed ₦20 billion ($14.56 million) in loans last year. For 2026, they're targeting at least ₦40 billion in loans with average ticket sizes rising to ₦30-40 million (up from ₦10 million).

Strategic focus includes northern Nigeria expansion with Islamic-compliant products, physical Kano operations, and diaspora opportunities in the UK and Canada. This mirrors broader trends as Nigerian fintechs like Flutterwave and Paystack also acquire MFB licences for direct deposit access and cheaper capital. The move transforms Sycamore into a broader financial services group with three business lines: lending, investment, and now banking.

As a business owner looking for financing, would you trust Sycamore with your deposits given their digital lending experience, or would you prefer traditional banks despite potentially higher rates?

SOURCE: https://techcabal.com/2026/05/21/sycamore-wants-29-million-in-deposits-after-mfb-acquisition/