Kuda Bank, others to get rival as CBN grants approval-in-principle to new bank

The Central Bank of Nigeria (CBN) has issued an approval in principle to Bloc Microfinance Bank.

The new bank will receive a license to operate microfinance banking services in Nigeria pending final approval from the apex bank.

Bloc to issue virtual cards and account numbers

Bloc MfB CEO Edmund Olotu said the move sets the right tone for the new bank as a financial technology firm and puts it on a path to global success.

CBN issues an approval in principle to promoters of a microfinance bank before incorporation. While the approval is not a license, it shows a willingness by Bloc to engage CBN and usually leads to a license.

Bloc can issue virtual account numbers with advanced features for its customers when licensed.

A statement by the company said all virtual accounts owned by Bloc MfB will also be insured by the Nigeria Deposit Insurance Corporation (NDIC).

In August 2023, the fintech firm provided APIs for businesses to offer banking and financial services to their customers.

It also launched a business banking solution, allowing businesses to create virtual naira, dollar cards, and bank accounts to make and receive payments.

According to reports, Bloc also offers an embedded finance service that allows third parties to issue virtual accounts and cards.

“With this, we solved the access problem for all types of businesses by fundamentally changing how banking and payments happen for all companies while enabling them to deploy bespoke financial services that guarantee business growth and sustainability,” Olotu said at the launch.

Block to compete with entrenched industry players

In April this year, Bloc acquired Orchestrate, a two-old wallet service provider, in a cash and equity deal.

Bloc stated that it would be doubling its banking API products, while Orchestrate would focus on improving its payment solution. It also revealed that it had processed over $30 million via its bill payment API.

If fully operational, Bloc will lock horns with entrenched players in the digital banking space, such as Kuda Bank, Carbon, and other microfinance banks providing seamless services to Nigerians.