Moniepoint, a leading Nigerian fintech, just as recently predicted after it hired a new CFO , is setting its sights on obtaining a commercial banking license from the Central Bank of Nigeria (CBN). According to insider sources, this move could take up to a year to materialize but represents step in the company’s ambition to expand its retail banking operations and strengthen its position in Nigeria’s competitive financial playing field.
A commercial banking license would allow Moniepoint to diversify its product offerings, giving customers access to services like international transactions and treasury operations—profitable segments in Nigeria’s banking sector. It would also permit the fintech to establish physical branches, a significant trust-building measure in a country where skepticism toward financial institutions remains widespread.
Foreign currency transactions alone offer immense revenue potential. For context, seven of Nigeria’s largest banks collectively earned ₦3.37 trillion in the first nine months of 2024 from this market. Moreover, the license would make Moniepoint the first Nigerian fintech to achieve this milestone, placing it ahead of competitors like OPay. This strategy mirrors Nubank’s approach in Latin America, where acquiring a banking license has enabled it to dominate markets in Brazil and Mexico.
Pioneering in a Crowded Market
Despite its rapid rise in the fintech space, Moniepoint is entering an already saturated banking sector. Nigeria currently has 24 licensed commercial banks, yet the sector is rife with criticism over poor customer service. This gap presents an opportunity for disruption, and Moniepoint aims to leverage its strong foothold in retail banking, which it launched in August 2023, to carve out a niche.
Though the company has yet to disclose its total customer base, industry experts rank it second only to OPay and ahead of Kuda, which boasts over 7 million users. Such growth places Moniepoint ahead of smaller commercial banks like Globus Bank, which had just 60,000 customers in 2022.
Significant Preparations Underway
According to sources familiar with the matter, Moniepoint began laying the groundwork for its license application in early 2024 by hiring experienced financial executives, including Bayo Olujobi as Chief Financial Officer from Stanbic IBTC. The fintech has also bolstered its compliance team, adding more than a dozen specialists in fraud monitoring and regulatory adherence since the start of the year.
While the minimum capital requirement for a regional commercial banking license stands at $30 million, Moniepoint’s recent $110 million funding round ensures it is well-prepared financially. The license, however, comes with strict regulatory demands, such as establishing physical branches equipped with facilities like strong rooms and loading bays.
Moniepoint has already demonstrated adaptability by setting up “support offices” nationwide to overcome geographical constraints tied to its current microfinance bank license. However, the limitations on product offerings remain a challenge. Microfinance banks in Nigeria cannot engage in high-value corporate banking, investment banking, or extensive treasury operations—services that are often the most profitable for commercial banks.
A New Era for Nigerian Fintech
If successful, Moniepoint’s transition to a commercial bank could mark a turning point for Nigeria’s banking sector. The move would align the fintech with regulatory standards imposed by the CBN and open avenues for diversified revenue streams, including corporate banking and foreign currency transactions.
