By Segun Adeyanju
Pan-African fintech giant Flutterwave has secured a national microfinance banking licence in Nigeria, marking a major shift in its operations after processing over $40 billion in lifetime transactions.
The licence, obtained through its acquisition of open banking startup Mono, allows Flutterwave to hold customer deposits and issue loans directly for the first time in its largest market. This move reduces its reliance on third-party banks and is expected to improve profit margins.
Chief Executive Officer Olugbenga Agboola said the development positions the company to retain funds within its platform, deepen customer relationships, and expand revenue streams. He noted that the firm has also injected additional capital to strengthen the new bank’s operations.
The new entity, Flutterwave Bank, will operate as a subsidiary with an independent board and leadership structure. It is expected to roll out services including account issuance, payment cards, and lending products, leveraging transaction data and Mono’s infrastructure to assess credit risk.
The development places Flutterwave alongside other Nigerian fintechs such as Paystack that are expanding into full banking services. It also signals a broader shift encouraged by the Central Bank of Nigeria toward integrated licensing for fintech firms.
Looking ahead, the company says the licence will boost profitability and strengthen its position ahead of a potential initial public offering, with indications it may consider a Nigerian listing.
