Kuda and FairMoney tipped to aggressively snatch traditional bank customers in 2026

Nigeria-based neobanks, Kuda and FairMoney, have been projected to attract and aggressively snatch large chunks of customers from traditional banks in 2026. This is according to projections by the business and technology analytics company, CB Insights.

In its report titled Fintech Predictions 2026, the analytics platform cited that neobanks going public and filing for full banking licenses across the world is one of the powerful forces converging to reshape financial services in 2026.

As a result of this, customers of traditional banks are more likely to start considering them as more efficient alternatives to their current custodians.

“Neobanks are no longer the startups nipping at the heels of incumbent banks. A new class of digital-first institutions is scaling globally, going public, and filing for full banking licenses, competing directly for the primary consumer banking relationship,” the report noted.

Nigerian Banks

In Nigeria, Kuda and FairMoney were tipped to witness an influx of traditional bank customers cross-carpeting to their platforms. This is especially so as they are either expanding aggressively into new markets or pivoting into full-service banks.

“Nigeria-focused Kuda is recruiting across multiple African territories while FairMoney is converting from a digital lender into a full-service pan-African bank. As this generation of neobanks moves into new markets with increasingly full-service offerings, consumer deposits at banks of all sizes face pressure from a fundamentally new class of competitors,” the report noted.

See also: Kuda Bank plans to launch in Tanzania and Canada following a successful 2025

Kuda’s upgraded license; FairMoney’s deeper financial offerings

In January, the Central Bank of Nigeria (CBN) announced that it had upgraded the licenses of several major fintechs and microfinance banks, including Kuda. The upgrade gave the fintech a full national operating status.

With a national license, the neobank will now face stricter compliance rules, higher capital requirements, and closer supervision.

It will also now be expected to maintain physical touchpoints in key cities, improve customer service structures, and strengthen internal controls, especially around know-your-customer (KYC) and anti-money laundering processes.

With this kind of licensing comes increased investment and trust, and with that comes increased dependence from customers, especially those with traditional banking needs.

But Kuda Bank is not stopping with Nigeria. Following an impressive 2025 characterised by strong transaction growth and wider usage across savings, payments, and credit products, the digital bank announced that it was expanding its financial services into Tanzania and Canada.

And the report predicts that with its roots now planted as a leading neobank, customers in its other markets would likely see it as a valid alternative to their current options.

While FairMoney (MyCredit Investments Limited) is not yet aggressively expanding beyond Nigeria, it is, however, expanding its footprint in the banking sector beyond just expanding access to finance. The fintech has successfully scaled its operations, evolving into a full-fledged licensed microfinance bank.

The company now offers a comprehensive suite of services, including high-interest savings accounts, fixed-term deposits, current accounts, debit cards, and POS solutions for businesses, all aimed at fostering financial inclusion through ease of use and competitive transaction rates.

So far, its offerings now span retail banking, business banking, and merchant services, moving far beyond its initial Unsecured Personal Loans product. Central to FairMoney’s strategy is a robust savings proposition designed to help Nigerians protect and grow their money against inflationary pressures.

This focus on deposit mobilisation has yielded significant trust and operational strength. This is reflected in its financial report as the company reported an operating revenue of NGN 112.3 billion in the 2024 fiscal year.

The fintech company also recorded a total interest payout on savings exceeding ₦7 billion within the same period. While it is not yet close to the epic numbers recorded by traditional banks, the payment of interest nonetheless signals to potential customers that FairMoney is ready for the big time.

See also: FairMoney paid ₦7bn in interest, disbursed ₦150bn loan in one year

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