Flutterwave is positioning itself to operate a microfinance bank (MFB), a significant step that would allow it to hold customer deposits and offer loans, expanding its financial product suite beyond payments.

This strategic move signals a shift from its established role as a payments infrastructure provider to becoming a full-stack financial services entity.

The company's ambition aligns with a broader trend observed among Nigerian fintechs, which are increasingly seeking to gain tighter control over the flow of money within their ecosystems.

Flutterwave has built its reputation as a leading African payments company, facilitating business transactions across multiple markets.

By entering the microfinance space, Flutterwave aims to gain direct access to customer funds, reducing its reliance on partner banks and potentially improving margins.

This strategy mirrors that of competitors, as several fintech firms in Nigeria have recently pursued microfinance licenses or acquisitions to broaden their capabilities.

These licenses enable companies to embed banking services directly into their platforms, offering a more integrated user experience.

Flutterwave’s interest in microfinance banking is also tied to its broader strategy of vertical integration, further evidenced by its acquisition of open banking startup Mono earlier in 2026.

This acquisition aimed to strengthen its control over financial data and infrastructure, supporting services like identity verification and real-time transfers.

Combined with its investments in stablecoins and cross-border payments, Flutterwave appears to be constructing a comprehensive financial 'super stack' encompassing payments, data, and banking.

This development suggests that the future of fintech in Africa is evolving beyond payments into fully regulated banking services.

If successful, Flutterwave's entry into microfinance banking could intensify competition in Nigeria's digital banking sector.

In parallel, the United Bank for Africa (UBA) has announced strengthened security measures for its mobile application to prevent fraudulent debits, unauthorized transfers, and withdrawals.

UBA informed its customers via an email memo that updated authentication options are now applied based on the value of transfers.

Transactions of N200,000 or more will now require customers to provide their Personal Identification Number (PIN) and a token number.

For transactions between N200,000 and N250,000, customers will need their PIN and a One-Time Password (OTP).

Transactions ranging from N250,000 to N500,000 will require a PIN and either an OTP or a Token number.

For transactions between N500,000 and N10 million, customers must use their PIN and Token to authenticate.

Transactions exceeding N10 million will necessitate the use of a PIN, Token, and Biometric authentication.

UBA assured customers that the app will guide them through these authentication thresholds.

Customers needing to authenticate transactions with Secure Pass can download the enabling mobile app and follow the provided instructions.

Secure Pass, formerly known as U-Token, generates OTPs for authorizing high-value internet and mobile banking transactions for UBA customers.

These enhanced security measures by UBA are part of ongoing efforts to combat fraudulent withdrawals and unauthorized transfers.

Nigerian financial institutions lost N52.2 billion to fraud in 2025, a substantial increase from N17.6 billion recorded in 2024, according to a report by the Nigeria Inter-Bank Settlement System (NIBSS).

The NIBSS is the central system responsible for settling inter-bank transactions in Nigeria, connecting Deposit Money Banks, Mobile Money Operators, Switches, and Payment Service Providers.

SBM Intelligence reported an increase in fraud cases within Nigeria’s banking sector over the past five years, with financial losses from fraudulent activities surging by N14.71 billion from 2019 to 2023.