Kuda built its own core banking system to avoid third-party failures
Kuda, Nigeria's neobank with seven million customers, built its own core banking system (NERV) after its third-party provider failed to scale with growth. The decision followed repeated system failures that threatened the startup's survival. NERV, named after the human nervous system, uses microservices architecture to handle 5,000 transactions per second. Key benefits include faster transfers, automated end-of-day processing, and the ability to launch new products like term loans and multi-currency wallets. The migration from the third-party system in 2025 faced technical challenges but succeeded through parallel operation and customer communication. Owning core infrastructure reduced vendor dependency and operational risk, enabling Kuda to scale engineering-first solutions for Nigerian financial services.