Bloc Microfinance Bank, a subsidiary of the pioneering fintech startup Bloc, has been granted Approval-in-Principle (AIP) by the Central Bank of Nigeria (CBN). This move paves the way for Bloc to launch its innovative banking services in Lagos, the country’s commercial capital.
The AIP, issued by the CBN, is a prerequisite for the incorporation of a microfinance bank at the Corporate Affairs Commission (CAC). While it does not equate to a full license, the AIP signals the CBN’s willingness to engage with the promoters of the microfinance bank and is often a precursor to the issuance of the final license.
Bloc Microfinance Bank aims to leverage this milestone to enhance its position as a financial technology company on a path to global success.
CEO Edmund Olotu expressed his enthusiasm, stating, “This sets the right tone for Bloc as a financial technology company and puts us on our path to global success.” The approval aligns with Bloc’s strategic vision to revolutionise banking services and marks a pivotal moment for the company.
Once the final operating license is obtained, Bloc Microfinance Bank plans to offer advanced virtual account numbers with enhanced features for various use cases. Additionally, all virtual accounts under Bloc MFB will be deposit-insured by the Nigeria Deposit Insurance Corporation (NDIC), ensuring a secure banking experience for customers.
Bloc’s strategic moves in the fintech space include the acquisition of Orchestrate, a wallets-as-a-service provider, in a cash and equity deal. The company aims to strengthen its banking-as-a-service (BaaS) API products while allowing Orchestrate to focus on improving its payments orchestration solution. Notably, Bloc had processed over $30 million through its bill payments API before the acquisition.
The company’s expansion is underscored by its integration into the Nigeria Inter-Bank Settlement System and listing on approximately 23 Nigerian banks and fintech platforms, including First Bank, Zenith Bank, Kuda, Moniepoint, and Opay. Bloc is actively working to extend its presence to more top-tier banks in the country.
In August, Bloc introduced a business banking solution, Bloc2.0B, enabling businesses to create virtual naira and dollar cards, bank accounts, and facilitate payments. The move aimed to address access challenges for businesses while transforming the landscape of banking and payments for companies.
As Bloc Microfinance Bank eagerly awaits its final license, it is ready to bring a revolution to financial services in Nigeria. The bank aims to provide creative solutions that contribute to the growth and sustainability of businesses in the region.
