CB Insights Report has revealed that FairMoney and Kuda are set to win millions of customers from traditional banks in 2026.
NewsOnline Nigeria reports that Nigeria-based digital banks FairMoney and Kuda are projected to attract a significant share of customers from traditional banks in 2026 as neobanks expand their offerings and scale across markets.
This projection was made by CB Insights in its latest report titled Fintech Predictions 2026, which highlights the growing influence of digital-first financial institutions globally.
According to the report, neobanks are rapidly evolving from startup disruptors into fully licensed financial institutions capable of competing directly with legacy banks for primary consumer banking relationships.
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“Neobanks are no longer the startups nipping at the heels of incumbent banks. A new class of digital-first institutions is scaling globally, going public, and filing for full banking licenses, competing directly for the primary consumer banking relationship,” the report stated.
The analytics firm noted that customers of traditional banks are increasingly likely to see digital banks as more efficient and convenient alternatives, especially as they offer broader services and improved technology-driven banking experiences.
Kuda, FairMoney positioned to capture new customers
Kuda Bank and FairMoney were specifically identified as Nigerian neobanks likely to experience strong customer growth in 2026.
The report noted that Kuda is expanding aggressively into new African markets while FairMoney is transitioning from a digital lender into a full-service pan-African banking platform.
“Nigeria-focused Kuda is recruiting across multiple African territories while FairMoney is converting from a digital lender into a full-service pan-African bank,” the report stated.
As these digital banks expand and introduce more comprehensive financial products, traditional banks may face increasing pressure on customer deposits and market share.
Kuda’s national licence and international expansion
In January 2026, the Central Bank of Nigeria upgraded the operating licences of several fintech firms and microfinance banks, including Kuda, granting the company national banking status.
The new licence allows Kuda to operate across Nigeria under stricter regulatory supervision, with higher capital requirements and stronger compliance obligations.
With the upgrade, the digital bank is also expected to strengthen customer service structures, maintain physical touchpoints in major cities, and improve internal controls around know-your-customer (KYC) and anti-money laundering procedures.
Beyond Nigeria, Kuda has also announced plans to expand its services into Tanzania and Canada following a strong performance in 2025 marked by increased transaction volumes and growing adoption of its savings, payments, and credit products.
FairMoney evolves into a full-service digital bank
Meanwhile, FairMoney which is officially registered as MyCredit Investments Limited has steadily expanded beyond its original personal loan offering.
The fintech has grown into a licensed microfinance bank offering a wide range of financial services, including high-interest savings accounts, fixed-term deposits, current accounts, debit cards, and point-of-sale solutions for businesses.
Its product portfolio now spans retail banking, business banking, and merchant services, aimed at improving financial inclusion through accessible digital banking and competitive transaction rates.
Central to FairMoney’s strategy is a strong savings proposition designed to help Nigerians grow their funds amid rising inflation.
This strategy has strengthened customer trust and financial performance. In its latest financial report, the company disclosed operating revenue of ₦112.3 billion in the 2024 fiscal year.
The fintech also paid more than ₦7 billion in interest to savings customers during the same period.
While these figures remain smaller compared to those of major traditional banks, analysts say the steady growth signals that digital-first banks like FairMoney are positioning themselves as credible alternatives in Nigeria’s evolving financial services landscape.
