Information available on the CBN website shows that there are about 916 licensed microfinance banks in Nigeria. These banks provide essential financial services (such as savings, lending, domestic fund transfers, etc.) to low-income earners, the unbanked and under-served groups like market women and unemployed youths.
For a very populous country like Nigeria where only 64% of the adult population are financially-included, these microfinance banks clearly have their job well cut out for them. Interestingly, quite a number of them are doing a fantastic job serving the Nigerian public.
In this special report, we shall be looking at the top 10 Nigerian microfinance banks that have set the pace and are now holding the ace. Among the yardsticks used to determine the top 10 best MFBs are efficient service delivery, innovation and customer satisfaction. See the list below:
1. KUDA Microfinance Bank
This is yet another top MFB that has taken the Nigerian financial services industry by storm. Also launched in 2016, the company started out as Kudimoney and offered online-only savings and digital lending. Since then, the company has transformed to KUDA, raised over $90 million and popularised itself among the youth as “the bank of the free”.
Right now, KUDA Bank is busy positioning itself as a major microfinance bank. And new users are signing up every day, thanks in part to its simplified banking app that makes it very easy to register and get access to a wide array of banking services.
If you are interested in learning more about KUDA Bank, ensure to visit its website today. Also, ensure to check out the company’s mobile app, if you care.
2. LAPO Microfinance Bank
This microfinance bank was established in the 1980s, primarily for the purpose of helping less-privileged Nigerians to cope with the harsh economic realities that followed the Structural Adjustment Programme under General Ibrahim Babangida. Since then, LAPO Microfinance has transformed into one of Nigeria’s most notable MFBs, thanks to its consistent effort at ensuring that low-income households in Nigeria are economically empowered. The company does this through the provision of “responsive financial services on a sustainable basis”.
You can learn more about LAPO Microfinance and its loans by visiting its website today.
3. ACCION Microfinance Bank
ACCION Microfinance Bank is very similar to LAPO in that they are both national microfinance banks. It was established in 2006, and has since been on a mission to “empower micro-entrepreneurs and low-income earners by providing financial services in a sustainable, ethical and profitable manner,” as per information available on its website.
The company offers different types of loans, including loans to small businesses, homeownership loans, education loans and more. Users can also get quick loans of up to N150,000 either through ACCION’s mobile banking or USSD channels.
4. Mutual Trust Microfinance Bank
Mutual Trust Microfinance Bank is one of Nigeria’s leading microfinance banks. Since April 2016 when the company rebranded its name from Mark de Rock Microfinance Ltd and changed its management, it has been on a trailblazing mission to redefine microfinance in Nigeria.
The company prides itself in providing excellent financial services with the use of cutting edge technology, and of course its highly experienced workforce. The processes are so easy, such that customers are able to complete their loan application in under ten minutes. Also, loan applications are analysed and approved in ten hours. And the best part is that the company has a very flexible repayment plan that allows customers to easily offset their loans without stress.
If you would like to learn more about Mutual Trust Microfinance Bank, then visit its website today. You can also download the company’s mobile app on Google PLay Store and the iOS store.
5. Assets Microfinance Bank
No discussion about best MFBs in Nigeria would be complete without mention of Asset Microfinance Bank. Although relatively new, this microfinance bank has positioned itself as a force to reckon with, thanks to its unique products designed to empower Nigerian businesses.
According to information available on its website, Assets Microfinance Bank was established by the CBN to primarily provide personal, business and payday loans to Nigerians. Besides these, the company also provides savings and investment services.
6. Fina Trust Microfinance Bank
On its website, Fina Microfinance prides itself as “Nigeria’s foremost Microfinance Banks”. Whether or not everyone agrees to this, what is indeed true is that it is one of Nigeria’s leading microfinance banks. Established in 2009, Fina Trust Microfinance Bank is said to be affiliated with LOLC Group, the largest, non-banking corporate entity in Sri Lanka.
Among the services provided by Fina Trust Bank are quick loans, salary advance, SME loan, education loan, financial asset financing, etc. The company also offers various kinds of accounts services including savings, current accounts as well as fixed deposit accounts.
You can learn more about Fina Trust Microfinance Bank by visiting its website today.
7. AB Microfinance Bank
This MFB was established in 2008 and has its headquarters in Lagos. On its website, the company describes itself as “a socially responsible bank of choice for micro and small enterprises”. Customers are given access to micro-loans, SME loans and housing loans.
Besides loans, AB Microfinance Bank also offers its customers the opportunity to open savings accounts, current accounts and fixed deposit accounts. More so, customers have access to mobile banking and other related banking services.
8. VFD Microfinance Bank
Much like KUDA Bank, VFD Microfinance Bank (or VBank for short) has been marketed and positioned as the go-to MFB for the trendy at heart. The company is a subsidiary of VFD Group which was established in 2009 and began operation in 2011.
On its website, VBank said its style of banking is fully re-imagined and designed to get customers more. There is a lot of focus on digitisation, even as the VBank mobile app is arguably one of the most advanced and best stream-lined to get customers more.
Visit the company’s website today to learn more about its services.
9. Sparkle Microfinance Bank
Launched in 2019 by the former MD of defunct Diamond Bank Uzoma Dozie, Sparkle Microfinance said part of its mission is to democratise access to finance for both small businesses and individuals.
At Sparkle Microfinance, technology plays a huge role. By downloading the Sparkle mobile app either from Google Play Store or the iOS store, you will be able to access a host of financial services. Visit the company’s website to learn more.
10. BoI Microfinance Bank
This microfinance bank is a subsidiary of Nigeria’s oldest development bank, the Bank of Industry. According to information available on its website, the BoI Microfinance Bank offers different types of services to small and medium sized enterprises as well as low-income earners. This is part of the company’s commitment to encourage entrepreneurship through the provision of easy loans. Besides loans, BoI Microfinance Bank also provides saving deposit services.The company was established in 2002. And thanks to the fact that it has the financial backing of the Bank of Industry, it is well-positioned to serve customers.
Fantastic revelations !!
Very informative…
Kuda bank has been the bank of the youth truly by the “free transfer offer” which is almost limitless for their customers. Giving out 30 free transfers per month!!! This is huge and very attractive when compared to other bank despite it is online oriented.
LAPO can be described as the microfinance bank of the people as it has contributed immensely to the growth of business and small scale enterprises especially for low income earners across the nation.
Mutual Trust, ACCION, and others are also commendable for their contributions to Nigerians.
This ranking is not correct, How can you mention microfinance bank without mentioning BOSAK Microfinance Banks, A bank that has been in operations for years.
AB MICROFINANCE BANK remain top notch and customer satisfaction is very high. AB ought to top the list without sentiment as it also National licensed bank.
Where is opay and palampay
Good job on the list
However, Advans Lafayette MFB is also holding the ace in Nigeria. Maybe you do your search on the ranking again.
Best wishes.
What is the position of CBN Interns of Regulatory activities and issuance of loans with minimal interest rate, taking cognizance of Monetary and Fiscal policies and encouraged OMO in operations?
Lapo is leading mircofiance in nigeria because it have soo difference branches in the country
The ranking is very wrong. Baobab Mfb is one of the biggest and fastest growing Mfb in Nigeria. It is currently the best SME bank for the year 2022. Please always liaise with appropriate authorities for this kind of ranking.
Interesting ranking for Microfinance Banks in Nigeria. Well done Nairametrics.
Thank you for the article, Nairametrics. Have you done a ranking of investment companies in Nigeria? That would be a nice read and I look forward to it.
What about Grooming micro finance bank
What about Grooming micro finance bank, there interest rate is flexible
please try and show their interest rate.This will help us make wise decisions
Pocket app is a scam
It’s sponsored by vfd microfinance bank
They are scam !!!
They are not easily located and I’ve lost my money more than 10times with them
If u mentioned these microfinance without opay and palmpay it means it’s not complete because during this cash scarcity in Nigeria, opay especially help Nigerians to make a successful transactions if their banks fell them. They are fast and their charges are okay. Even today, many Nigerians are still downloading the opay app and also get their ATM card within the neighborhood.So the person that wrote this should edit it and include these two powerful mfb that we can’t do without in Nigeria today.
All the microfinance Banks not approved by the CBN and continue to operate, their directors should be arrested so that innocent people will not fall into their traps, because whenever you apply for loan they will not give you but they are only out get people account details which maybe used for criminal activities. Government should take notes of this and take immediate steps to curbs their activities.