Sycamore, a Nigerian fintech, wants to build a deposit base that could exceed ₦40 billion ($29.13 million) as it expands from digital lending into banking and payments following its acquisition of a microfinance bank licence.
The digital lender acquired the MFB licence through the acquisition of an undisclosed Kano-based microfinance bank. The company’s chief executive officer, Babatunde Akin-Moses, told TechCabal in an interview on Tuesday that deposit mobilisation would become one of its biggest priorities now that it can hold funds.
“Deposit mobilisation is going to be very critical,” he said.
The move reflects a broader shift among Nigerian fintechs that are increasingly acquiring microfinance banking licences to gain direct access to deposits and cheaper capital.
In April, Flutterwave, the Nigerian fintech unicorn, secured an MFB licence after acquiring open banking startup Mono. In January, Paystack acquired Ladder Microfinance Bank, as fintechs try to convert payment users into banking customers.
