Kuda Technologies, the digital banking arm of Kuda Microfinance Bank (MFB), has announced that it processed ₦14.3 trillion in transactions in the first quarter of 2025.
The record transaction value, disclosed by senior executives, reinforces Kuda’s position as one of the country’s leading digital banks and highlights the sustained shift towards digital financial services by Nigerian consumers and businesses.
In a statement made available to the media, the fintech firm confirmed that its robust Q1 performance is fueling its next growth phase — the integration of artificial intelligence (AI) capabilities into its banking products and service delivery channels.
According to company sources, the AI-driven strategy aims to strengthen Kuda’s value proposition by automating routine operations, enhancing fraud detection, and improving customer experience through personalised financial services and smarter support systems.
“Our transaction volume for Q1 reflects the trust our customers place in our technology and service model. We believe that AI integration will help us scale further, operate more efficiently, and deliver even better value to millions of users,” a senior Kuda executive stated.
Industry analysts note that Kuda’s move comes at a time when AI adoption is gaining momentum across Nigeria’s financial services sector. Increasing competition from traditional banks and new fintech entrants has intensified the need for advanced technology solutions that lower operating costs and boost service quality.
With over 7 million customers, Kuda has built its brand on a low-fee, branchless model that appeals to young, tech-savvy Nigerians who prefer mobile banking solutions over traditional brick-and-mortar branches.
The company’s latest push into AI follows its successful rollout of digital tools for budgeting, savings, and instant payments, which have helped it attract significant transaction volumes since its launch.
Kuda’s new AI deployment will target key areas such as real-time transaction monitoring, predictive analytics for credit scoring, and customer onboarding automation — aligning with global trends in digital banking innovation.
“AI is not just an add-on for us — it’s central to how we will evolve in the next few years,” the company said. “It will allow us to deliver more personalised services while maintaining the security and compliance standards our customers expect.”
Nigeria’s fintech sector remains one of Africa’s fastest-growing, driven by rapid mobile phone adoption, improved internet penetration, and strong investor interest. The Central Bank of Nigeria (CBN) has also continued to encourage the digitisation of banking operations to promote financial inclusion and deepen payment system efficiency.
Kuda’s expansion plans come as the broader digital finance ecosystem faces new regulatory requirements on data protection, cybersecurity, and capital adequacy, prompting market leaders to strengthen operational resilience.
As the competition intensifies, Kuda’s focus on advanced technology, customer-centric products, and cost-effective operations is expected to shape its growth trajectory in the years ahead.
