The Role of Microfinance Banks in Nigeria’s Financial Services Industry
Nigeria has approximately 916 licensed microfinance banks that play a crucial role in providing financial services to low-income earners, unbanked, and underserved groups.
However, with only 64% of the adult population financially included, there is still a significant gap to fill in the country’s financial services industry.
Introduction of the Top 10 Microfinance Banks in Nigeria 2023
This report highlights the top 10 microfinance banks in Nigeria that are leading the industry in 2023.
These MFBs have distinguished themselves through their consistent effort to empower micro-entrepreneurs and low-income earners, provide sustainable financial services, and adopt cutting-edge technology to make banking services more accessible.
1. KUDA Microfinance Bank
KUDA Microfinance Bank, formerly Kudimoney, has taken the Nigerian financial services industry by storm.
The company offers online-only savings and digital lending and has transformed into a major microfinance bank, positioning itself as “the bank of the free.”
Its simplified banking app makes it very easy to register and access a wide array of banking services, making it popular among the youth.
2. LAPO Microfinance Bank
LAPO Microfinance Bank was established in the 1980s to help less-privileged Nigerians cope with the harsh economic realities that followed the Structural Adjustment Programme.
Since then, the company has transformed into one of Nigeria’s most notable MFBs, consistently empowering low-income households in Nigeria with sustainable financial services.
3. ACCION Microfinance Bank
ACCION Microfinance Bank, established in 2006, aims to empower micro-entrepreneurs and low-income earners with sustainable, ethical, and profitable financial services.
The bank offers various loans, including for small businesses, homeownership, education, and more. Quick loans of up to N150,000 can be obtained via ACCION’s mobile banking or USSD channels.
4. Mutual Trust Microfinance Bank
Mutual Trust Microfinance Bank is a top Nigerian microfinance bank that has been on a mission to redefine microfinance in Nigeria since rebranding from Mark de Rock Microfinance Ltd in 2016.
The company provides excellent financial services, using cutting-edge technology and a highly experienced workforce as a source of pride.
Loan applications take less than 10 minutes to complete and are analyzed and approved within 10 hours. The company also has a flexible repayment plan that allows customers to easily offset their loans without stress.
5. Assets Microfinance Bank
Assets Microfinance Bank, established by the CBN, offers personal, business, and payday loans to Nigerians, along with savings and investment services.
The company’s unique products empower Nigerian businesses, and more information can be found on its website.
6. Fina Trust Microfinance Bank
Fina Trust Microfinance Bank is a leading microfinance bank in Nigeria, established in 2009. The bank is affiliated with LOLC Group, the largest non-banking corporate entity in Sri Lanka. The bank offers a range of services, including quick loans, salary advance, SME loans, education loans, financial asset financing, savings accounts, current accounts, and fixed deposit accounts.
7. AB Microfinance Bank
AB Microfinance Bank was established in 2008 and has its headquarters in Lagos.
The bank is described as “a socially responsible bank of choice for micro and small enterprises” and offers micro-loans, SME loans, and housing loans.
Customers can also open savings accounts, current accounts, and fixed deposit accounts and have access to mobile banking services.
8. VFD Microfinance Bank
VFD Microfinance Bank, also known as VBank, is a subsidiary of VFD Group and has been marketed as the go-to MFB for the trendy at heart.
The bank’s services are fully digitized, and the VBank mobile app is one of the most advanced and streamlined to get customers more.
The bank is focused on digitization and offers a range of services, including savings accounts, current accounts, and loans.
9. Sparkle Microfinance Bank
Sparkle Microfinance Bank was launched in 2019 by the former MD of defunct Diamond Bank Uzoma Dozie.
The bank’s mission is to democratize access to finance for small businesses and individuals.
The bank heavily relies on technology, and customers can access a host of financial services through the Sparkle mobile app.
10. BoI Microfinance Bank
BoI Microfinance Bank is a subsidiary of Nigeria’s oldest development bank, the Bank of Industry.
The bank caters to SMEs and low-income earners and offers a variety of services to these groups. Besides loans, BoI Microfinance Bank also provides savings deposit services.
The bank’s commitment is to encourage entrepreneurship through the provision of easy loans.
The company was established in 2002 and has the financial backing of the Bank of Industry, making it well-positioned to serve customers.