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A digital bank for emerging markets, Umba has launched operations in Kenya as it begins to expand across the continent.

The digital bank was operating only in Nigeria before expanding to Kenya.

It has also announced to establish its presence soon in Uganda and Tanzania.

Umba acquired a majority shareholding in Daraja Microfinance Bank, hence can now offer full banking services in Kenya, including current accounts insured by the Kenya Deposit Insurance Corporation (KDIC), interest-bearing savings accounts, fixed deposit accounts, lending, and payments.

Umba Chief Executive Officer, Tiernan Kennedy stated that Kenya needs a great digital bank to offer the services that customers want, without the massive fees they have been paying to the legacy players.

“It’s a fantastic opportunity we have been given to bring Umba to the Kenyan market. It’s been an extremely challenging and lengthy process to make this acquisition but the ability to stand on our own two feet and grow the bank into a serious player in the market is worth it,”

The startup aims to make it easier for consumers and Small and Medium Enterprises (SMEs) to interact with banks and mobile money networks, providing a transparent, low-fee service that allows users to take control of their financial lives.

Users get a no-fee current account, low-cost payments, bill pay and loans.

Umba also uses the proprietary data generated by customers to offer credit products and generate revenue where customers can receive and repay credit products through their mobile phones.