Kuda plans AI integrations as transactions hit N14.3tn in Q1

Kuda Technologies, the fintech arm of Kuda MFB, is aiming to expand through strategic business launches and AI integration, including a chatbot designed for customer engagement.

The fintech, which processed N14.3 trillion across over 300 million transactions in both retail and business banking during the first quarter of 2025, said it is ready to introduce business-focused solutions, using innovation, strategy, and data to support small and medium-sized enterprises (SMEs) beyond the traditional agency model.

Nosa Oyegun, vice president of Product, Innovation and Strategy at Kuda, revealed this at a media parley held in Lagos, where he stated that the company has spent the past year refining its understanding of the SME landscape, using internal data to identify business patterns among retail customers.

“We have seen retail customers using their personal accounts for business. From overdraft usage to loan requests, the business-like behaviour is clear,” he stated.

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According to him, this insight has shaped Kuda’s decision to develop a full-fledged business banking product. The goal is to serve real businesses such as supermarkets, restaurants, fashion boutiques, and not just agency POS operators.

“There is a gap in the market for real business banking. We are not just about cash in, cash out. We are looking at tools that help businesses grow, such as invoicing, inventory, and sales systems,” he noted.

Breaking down the fintech’s Q1 performance, Babs Ogundeyi, chief executive officer of Kuda, highlighted that N8.5 trillion was processed under retail banking, while business users accounted for N5.8 trillion. Ogundeyi also disclosed that transfers, which are mostly free on Kuda’s app, continued to drive user activity, and business banking clients alone were responsible for N1.5 trillion in transfers.

The fintech issued almost N17 billion in overdrafts and paid out N130 million in interest to users. He noted that this access to capital will give the firm the boost it requires to expand into other countries.

“The cost of expanding into new countries is an investment. By channelling our resources into building across countries, we unlock more customers, introduce more products, and ultimately fuel our growth. The wider our reach, the more profitable we become,” he said.

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Currently, the Kuda app supports pounds and euros, with plans to integrate US and Canadian dollars over the next six months. The feature, for now, is only available to users outside Nigeria. Kuda is also betting on artificial intelligence to scale operations as the company has been training a chatbot tailored to customer interaction patterns, with early use cases already easing pressure on support teams.

“There’s a whole world of opportunity in AI, but we are taking a measured approach,” said Ore Fakorede, head of content, Community and Creative at Kuda. “Customer service is an area where we are testing how AI can help us scale without losing the human touch.”

The bank showcased its AI tools at a recent conference and plans to apply machine learning insights to both its retail and business divisions. “It is not just about automation, it is about using six years of product knowledge to reimagine the future of digital banking,” he added.