The Central Bank of Nigeria has issued approval for Ourpass to operate as a microfinance bank in Nigeria.
The Central Bank of Nigeria (CBN) has granted OurPass, a neobank in the Tekedia Capital portfolio, a Microfinance Banking (MFB) license, marking a noteworthy achievement.
This acquisition represents a significant milestone in OurPass’s effort to broaden its client base in Nigeria and increase the scope of its financial services.
Scheduled to commence operations in September 2024, OurPass aims to differentiate itself by catering to large corporations, offering credit facilities for inventory financing, asset financing, and invoice discounting. Unlike its competitors, OurPass plans to establish a physical presence in all 774 local government areas across Nigeria.
“We have done all the major integrations, we are left with one last integration with NIBSS [Nigeria Interbank Settlement System],” said Samuel Eze, CEO of OurPass. “We are focusing on giving credits for large corporates, focusing on inventory financing, Asset financing, and invoice discounting.”
OurPass plans to release its banking-as-a-service product before the end of the year and create specialized products for creatives. Eze claims the startup will be profitable within the next 12 months, positioning itself as a hybrid between a conventional bank and a fintech firm.
“At the heart of our business strategy is sustenance. We are constantly thinking about revenue. We are now focused on achieving the best net income ratio,” Eze emphasized.
OurPass acquisition of the Microfinance Banking license is a strategic move to tap into a broader market segment, enhance customer engagement, and increase market share. The license enables OurPass to target underserved and unbanked populations, offering them access to essential banking services.
With this development, OurPass joins the competitive Nigerian business banking sector, challenging established entities like Brass, Moniepoint, and Opay. However, its focus on large corporations and its physical presence in local government areas sets it apart from its competitors.
OurPass Secures Microfinance Banking License
