The digital banking sector in Africa continues to expand rapidly, with new players emerging to offer financial services to underserved populations. In Nigeria, Umba, a digital bank operating out of Lagos, has raised $15 million in Series A funding, marking a significant milestone in its mission to provide accessible financial services.
Launched with the aim of serving customers overlooked by traditional banks, Umba provides a range of services including free bank accounts, interbank transfers, peer-to-peer transactions, and bill payments. These are core offerings seen in many digital banking platforms across Africa, but Umba’s credit-focused model sets it apart.
With only a small percentage of Africa’s population holding bank accounts, Umba focuses on offering credit products based on proprietary data gathered from its users. Through its credit model, the platform extends loans to customers and uses a simple monthly interest system, claiming to offer some of the lowest rates in the market. CEO Tiernan Kennedy, who co-founded Umba with Barry O’Mahony, says the fintech leverages automated underwriting and real-time customer data to issue credit efficiently.
In addition to the new funding, the platform has garnered attention from industry experts, including executives from Nubank, a leading fintech in Latin America. Their endorsement highlights Umba’s potential to replicate Nubank’s success in emerging markets.The platform’s revenue growth has been impressive, with the company doubling its earnings every quarter since launching 18 months ago. Umba has also achieved over a million installs on Google Play, solidifying its position in Nigeria’s competitive digital banking space.
Looking ahead, Umba plans to expand its offerings and services to more African countries, with upcoming launches in markets such as Egypt, Ghana, and Kenya, where mobile money services dominate. The company also intends to roll out additional financial products like debit cards, savings accounts, and investment options in the coming year.
As Umba continues to grow, its ability to provide a flexible, customer-first banking experience could play a key role in shaping the future of digital banking across Africa.
