Umba, a digital banking platform operating in Lagos, Nigeria, has raised $15 million in Series A funding. The news comes almost two years since the fintech raised a seed round of $2 million. Umba said it brings a wide range of transparent and accessible financial products to those underserved by legacy banks across Africa — only 43% of the region’s population are account holders at financial institutions. Its features include free bank accounts, interbank transfers, peer-to-peer transfers, and bill payments. These are standard features digital banks in Africa provide, whether they’re deposit-first like Kuda, credit-first such as FairMoney or Carbon, or both like Fintech Farm.
Establishing an interoperable digital banking experience across African markets is an arduous task, especially between banks and mobile money operators. It’s still early to say if the company can underwrite loans and provide financial services across various systems on the continent. However, the new funding will allow the company to test this out as it prepares to launch in new markets, including Egypt, Ghana, and Kenya, where mobile money is prominent. Umba will also make some expansions product-wise rolling out debit cards, savings accounts, and stock trading in the next 18 months.