Umba, Nigerian Digital Bank Opens Office in Kenya

In order to grow across the continent, Umba, a digital bank for emerging countries that has only previously operated in Nigeria, has begun operations there.

Umba is a digital bank created specifically for Africa with the goal of expanding financial services to the continent’s sizable untapped market. The startup wants to make it simpler for customers and small businesses to deal with banks and mobile money networks by offering a clear, affordable tool that empowers users to manage their finances.

Users receive a current account with no fees, inexpensive payments, billpay, and loans. Clients can receive and repay credit products using their mobile phones, and Umba uses the private data collected by customers to offer credit products and generate money.

Umba can now provide all banking services in Kenya, including current accounts covered by the Kenya Deposit Insurance Corporation (KDIC), interest-bearing savings accounts, fixed deposit accounts, lending, and payments, after purchasing a controlling stake in Daraja Microfinance Bank.

“We have a great potential to introduce Umba to the Kenyan market. The ability to stand on our own two feet and develop the bank into a significant participant in the market has made the extraordinarily difficult and drawn-out process of making this acquisition more than worthwhile, according to Umba CEO Tiernan Kennedy.

We are really appreciative of the Central Bank, the Daraja shareholders, and our market expansion team at Umba for making this possible. To provide the services that clients desire in Kenya without the exorbitant costs they have been paying to the legacy companies, the country needs a great digital bank. The best services will triumph in this situation, and we are confident in our team’s capability to deliver.

Leading fintech investors have backed Umba strongly, including Tom Blomfield, the founder of Monzo, as well as executives from NuBank and Lachy Groom, Lux Capital, and Palm Drive Capital. Costanoa Ventures also provided the business with its Series A funding. A supporter as well, Chandaria Capital enthusiastically backed the Kenyan launch.

“We’re thrilled that Umba has launched in Kenya. We made an investment knowing that they had a special way to enter the Kenyan market as well as a successful operation in Nigeria. We think that Umba offers both consumers and businesses a highly compelling product. Month after month, the team has been providing value to its consumers, and the end result is a top-notch product. The transition from one to two countries can be difficult, but when done effectively, the possibility is enormous. Mark Selcow of Costanoa Ventures remarked, “We’re thrilled to continue supporting this team and this market opportunity.

With the recent addition of Peter O’Toole and Dan Watts, Umba has expanded its executive team. Peter has over 30 years of experience as a leader in the financial services industry and as a seasoned CFO. Prior to this, he served as CFO of Renmoney and Group CFO of Interswitch. As chief credit risk officer at both Renmoney and Carbon, Watts has spent the last ten years developing creative and sustainable lending programs with banks and fintechs throughout Africa.