Flutterwave Secures National Microfinance Banking License To Launch Direct Lending And Deposit Services

Flutterwave shifts to direct banking in Nigeria after securing a microfinance license, enabling the fintech to offer loans, cards, and deposit accounts.

By: AXL Media

Published: Apr 3, 2026, 11:12 AM EDT

Source: The information in this article was sourced from Legit.ng

Strategic Shift Toward Infrastructure Independence

The acquisition of a national microfinance banking license marks a fundamental pivot for Flutterwave, moving the firm beyond its traditional role as an intermediary. By securing this regulatory approval, the company effectively ends its historical reliance on third party commercial banks for core functions like fund settlements and virtual account generation. According to Olugbenga Agboola, Chief Executive Officer of Flutterwave, the transition allows the firm to retain capital on its own platform for the first time, having previously processed over 40 billion dollars without retaining the underlying deposits.

Consolidating Assets Through Open Banking Acquisition

This expansion was facilitated by the January acquisition of Mono, an open banking startup whose technical framework is now central to Flutterwave’s banking strategy. The integration of Mono’s infrastructure provides the fintech with deep insights into customer financial behavior across multiple platforms. Abdulhamid Hassan, Chief Executive Officer of Mono, noted that this data driven approach is designed to mitigate the risks associated with non performing loans, as the system can track and manage repayments across various accounts linked to a single Bank Verification Number.

Market Significance And The Race For Deposits

The move positions Flutterwave to compete more aggressively for low cost deposits, a critical component for scaling a sustainable lending business. By converting its existing base of global clients, which includes major entities such as Uber and Microsoft, into banking users, the company aims to deepen its revenue per user. Analysts suggest that this shift reflects a broader trend in the Nigerian fintech landscape where companies are seeking higher margins in credit and interest bearing products to offset the thinner returns found in the highly competitive payments sector.