Flutterwave CEO on why African fintechs want to become banks
Flutterwave CEO, Olugbenga Agboola argued that African fintechs are becoming banks because payments alone are no longer enough.
In April, African fintech unicorn Flutterwave obtained a national microfinance banking licence by acquiring open banking startup Mono. This move follows a trend of Nigerian fintechs entering regulated banking, such as Paystack's acquisition of Ladder Microfinance Bank and Moniepoint's securement of a microfinance banking licence in 2025.
CEO Olugbenga "GB" Agboola explained that African fintechs are pursuing banking licenses because payments alone are insufficient. Agboola stated that controlling the infrastructure behind their payment business is essential for delivering a superior experience. With over $40 billion in lifetime payments processed and serving more than 2 million businesses, Flutterwave's existing payments platform exposed the limitations of relying on third-party financial institutions.
If a partner bank experiences downtime, parts of Flutterwave's payment infrastructure can be affected. The acquisition of banking licenses also provides Flutterwave with a path to lending, leveraging its transaction data to offer better credit options. However, Flutterwave's initial focus is on liquidity and working-capital infrastructure, including pre-funding payouts for businesses needing immediate capital in Africa.
In June, Flutterwave raised a Series E round at a $3.25 billion valuation, integrating Ripple's RLUSD stablecoin into its payment infrastructure. The company has built the largest deployment of stablecoins in Africa, supporting multiple blockchains. As competition intensifies between fintechs and traditional banks, Flutterwave operates across 35 countries with more than 50 global licenses.
Written by urgent.news from TechCabal's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
