The Central Bank of Nigeria (CBN) has upgraded and licensed Sycamore Microfinance Bank, allowing the firm to provide over 400,000 customers with direct access to deposit accounts.
In a statement, the firm disclosed that this development marks a shift in the company’s operations, enabling faster payment processing through Nigeria’s national payments infrastructure and promoting economic growth. With the new CBN license, Sycamore Microfinance Bank can now accept customer deposits within a regulated banking framework.
The license also connects the bank directly to the Nigeria Inter-Bank Settlement System (NIBSS), which underpins electronic payments across the country.
“This change ensures faster transaction settlement times and adds a regulated layer of protection for funds held on the platform.Previously, Sycamore operated mainly as a lending platform, licensed by the Federal Competition and Consumer Protection Commission (FCCPC), alongside an asset management arm regulated by the Securities and Exchange Commission (SEC),” it said.
The new microfinance bank license introduces a third pillar to its operations, enabling the acceptance of deposits and independent payment processing, eliminating the need for third-party banks. Babatunde Akin-Moses, Sycamore’s Group CEO, emphasized the importance of this license in addressing customer needs.
“Our customers have asked for the ability to save and hold funds on our platform, not just borrow or invest. The microfinance bank license lets us offer that in a regulated environment where their deposits are protected,” he stated.
The practical benefits for users revolve around cost and speed. With direct connectivity to NIBSS, Sycamore can now process transactions internally, significantly reducing both processing times and the fees associated with multi-party settlements.
Onyinye Okonji, the company’s co-founder and chief commercial officer, noted that the new MFB is designed to cater to the same demographic that has built its lending and investment businesses: working professionals and small business owners.
“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,” she said.
Since its inception in 2019, Sycamore has grown its customer base to over 400,000 and manages assets worth N50 billion, processing $73 million in transaction volume last year.
The company generated $5 million in revenue during the same period, entirely through organic growth without relying on external venture capital. The MFB license is the third regulatory approval Sycamore has secured since its founding.
The company began with state-level money-lender licenses in Lagos and Ogun before obtaining FCCPC approval for its lending operations. In March 2025, Sycamore announced its SEC license and launched an asset management division, led by former Managing Director of ARM Securities, Oluwagbenga Magbagbeola.
Operating under the Sycamore Group umbrella, the three businesses maintain regulatory separation, while customers can access all services through a single mobile application.
Looking ahead, Akin-Moses confirmed plans to introduce additional savings products and expanded payment features via the new MFB.
“We are building this in stages. The license 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.