Nigeria-based digital bank Umba has announced it now operates in Kenya as it begins to expand across the continent.
After acquiring a majority shareholding in Daraja Microfinance Bank, Umba can now offer full banking services in Kenya, including current accounts insured by the Kenya Deposit Insurance Corporation (KDIC), interest-bearing savings accounts, fixed deposit accounts, lending, and payments.
Umba is a digital bank built for Africa, aiming to open up banking services for Africa’s vast, underserved market. The startup aims to make it easier for consumers and SMEs to interact with banks and mobile money networks, providing a transparent, low-fee service that allows users to take control of their financial lives.
Users get a no-fee current account, low-cost payments, billpay, and loans. Umba also uses the proprietary data generated by customers to offer credit products and generate revenue where customers can receive and repay credit products through their mobile phones.
The bank’s officials stated Kenya needs a digital bank to offer the services that customers want, without the massive fees they have been paying to the legacy players. The winners here will be who provides the best services and they’re confident in their team’s ability to deliver.
Umba has strong backing from leading fintech investors, including Costanoa Ventures, which led the startup’s Series A, as well as Lachy Groom, Lux Capital, Palm Drive Capital and strategic angels such as Monzo founder Tom Blomfield and executives from NuBank. Chandaria Capital is also a backer, and strongly supported the Kenya launch.
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