Lagos-based fintech firm Sycamore is deepening its footprint in Nigeria’s financial services sector after securing a microfinance bank licence from the Central Bank of Nigeria (CBN), a development that positions the company to offer deposit banking services directly to its growing customer base.
The approval, issued under a newly established entity known as Sycamore Microfinance Bank, marks a significant transition for the company from a digital lending and investment platform into a more integrated financial institution. With the licence, Sycamore can now accept customer deposits, process payments independently, and connect directly to the Nigeria Inter-Bank Settlement System (NIBSS), the country’s core electronic payments infrastructure.
For over 400,000 users already active on the platform, the move is expected to improve transaction speed, reduce payment processing delays, and provide stronger regulatory protection for customer funds.
Before obtaining the banking licence, Sycamore operated mainly through two business lines: a lending platform regulated by the Federal Competition and Consumer Protection Commission (FCCPC) and an asset management division licensed by the Securities and Exchange Commission (SEC). The microfinance bank licence now introduces a third operational layer — banking services.
The development means the company will no longer rely heavily on third-party commercial banks to complete customer transactions. Instead, payments and settlements can now be handled internally through direct NIBSS integration, a shift expected to lower operational costs and improve efficiency for users.
Speaking on the milestone, Sycamore Group CEO, Babatunde Akin-Moses, said the decision was largely driven by customer demand for a more complete financial ecosystem.
“Our customers have asked for the ability to save and hold funds on our platform, not just borrow or invest. The microfinance bank licence lets us offer that in a regulated environment where their deposits are protected,” he said.
According to the company, the new banking structure is aimed at professionals, entrepreneurs, and small business owners seeking a single platform for savings, investments, and access to credit.
Co-founder and Chief Commercial Officer, Onyinye Okonji, explained that many existing users currently split their financial activities across multiple providers, relying on traditional banks for savings while using Sycamore for loans or investment products.
“Most of our customers already use a traditional bank for savings and come to us for credit or investment products. We want them to be able to do all of that in one place, with the same level of trust and regulatory oversight they expect from any licensed financial institution,” Okonji said.
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| L-R: Daniel Anyaegbu, Chief Technical Officer, Sycamore Group; Elizabeth Oyelade Chief of Staff & Head of Finance, Sycamore Group; Babatunde Akin-Moses, CEO, Sycamore Group; Onyinye Okonji, Cofounder/CCO, Sycamore Group; and Gbenga Magbagbeola, Managing Director, Sycamore Investment and Asset Management Ltd at the signing of Sycamore’s oversubscribed commercial paper offering in Lagos recently. |
The company says all three arms — lending, asset management, and microfinance banking — now operate as separate legal entities under the Sycamore Group structure, each governed by its own regulatory framework while remaining accessible through a single mobile application.
Sycamore’s growth trajectory has been notable despite operating without venture capital funding. The company disclosed that it processed about $73 million in transaction volume last year, generated roughly $5 million in revenue, and currently manages assets worth more than ₦50 billion.
Industry observers say the move reflects a wider trend among Nigerian fintech firms seeking deeper regulatory licences to gain greater control over payments, customer deposits, and financial infrastructure as competition intensifies across the digital banking ecosystem.
Akin-Moses noted that the company intends to gradually introduce new savings products and broader payment features in the months ahead.
“We are building this in stages. The licence is the foundation. The products that sit on top of it will be shaped by what our customers tell us they need most,” he said.