Sycamore Targets $29M Deposits After MFB Licence Deal

In Short

• Sycamore wants to build a deposit base above ₦40 billion, about $29.13 million.
• The target follows its acquisition of a microfinance bank, or MFB, licence in Nigeria.
• The company says deposit mobilisation will be a top priority as it expands beyond digital lending.

What Happened

Nigerian fintech Sycamore says it wants to grow deposits beyond ₦40 billion ($29.13 million) after acquiring a microfinance bank licence.

The company got the MFB licence by acquiring an undisclosed Kano-based microfinance bank. An MFB licence lets a financial company take customer deposits, similar to how a bank holds your money, instead of relying mainly on borrowed funds or investor capital.

Sycamore CEO Babatunde Akin-Moses said deposit mobilisation will now be “very critical” because the company can legally hold funds. The plan signals a shift from operating mainly as a digital lender into offering more regulated banking and payments services.

Why It Matters

Deposits are usually cheaper capital than venture funding or wholesale borrowing. For lenders, that can improve margins, help manage liquidity, and support longer-term product plans like savings accounts, bill payments, and merchant payments.

Sycamore’s move also fits a growing playbook in Nigeria. More fintechs are seeking MFB licences to turn large payments user bases into banking customers and to access stable funding.

Recent examples include Flutterwave and Paystack, which have also pursued microfinance banking licences through acquisitions. If this trend continues, competition may shift from just payments and consumer credit to who can gather deposits, meet regulatory requirements, and build trust at scale.

For users and operators, the key question is execution. Deposit growth requires strong compliance, customer support, and risk controls, especially in a market where regulators pay close attention to how fintechs handle consumer funds.