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FSDH Merchant Bank

“Can a Nigerian merchant bank become a full-service financial supermarket by layering embedded/API-driven distribution on top of its wholesale banking license?”

Founded1992
HQLagos Island, Lagos, Nigeria
Total raised$50M
IndustryBank / National
The story

Founded 1992 as First Securities Discount House, Nigeria's first discount house. After the CBN revoked universal banking licenses in 2009 and restructured the industry into commercial and merchant banking categories, FSDH transitioned and was granted a merchant banking license in 2012. Today the group operates as a full financial services supermarket with subsidiaries in asset management and capital markets, offering treasury, corporate banking, health-sector finance, prestige banking, business banking, global custody, and an API sandbox for embedded finance distribution.

Last 12 months
—
Product timeline
1992
Incorporated as First Securities Discount House Limited, the first discount house in Nigeria.· founding
2012
Granted Merchant Banking License by the Central Bank of Nigeria.· banking
Regulated entities
1
regulatory licence held by FSDH Merchant Bank
Licence types, jurisdictions and registered entities are in the Embedded Finance Index report.
The stack
5 layers disclosed in FSDH Merchant Bank’s embedded-finance stack
Payments / PSP
FSDH Digital Payments (in-house)e-BillsPay (in-house)PayDirect (Nigeria interbank rail)
Banking / BaaS
in the full report
Lending
in the full report
FX & payouts
in the full report
Investing
in the full report
Accounting gap: significant
11 more providers across 4 layers, with confidence-scored evidence and source URLs, are in the Embedded Finance Index report.

FSDH Merchant Bank — frequently asked

What bank does FSDH Merchant Bank use?

FSDH Merchant Bank discloses FSDH Merchant Bank Limited (in-house) as its banking provider, according to the Embedded Finance Index 2026.

Is FSDH Merchant Bank a bank?

FSDH Merchant Bank does not disclose a bank charter of its own; its banking services are provided through FSDH Merchant Bank Limited (in-house).

Who is FSDH Merchant Bank's payment processor?

FSDH Merchant Bank processes payments through FSDH Digital Payments (in-house), e-BillsPay (in-house) and PayDirect (Nigeria interbank rail).

Who provides FSDH Merchant Bank's lending?

FSDH Merchant Bank's lending and capital products are provided by FSDH Merchant Bank Limited (in-house).

Who handles FSDH Merchant Bank's FX and cross-border payouts?

FSDH Merchant Bank uses FSDH Treasury & Global Markets (in-house) for FX and cross-border payouts.

Who powers FSDH Merchant Bank's investing products?

FSDH Merchant Bank's investing and wealth products are powered by Pal Pension (FSDH group affiliate).

What is FSDH Merchant Bank's embedded finance stack?

The Embedded Finance Index 2026 maps 5 layers in FSDH Merchant Bank's stack: Payments / PSP (FSDH Digital Payments (in-house), e-BillsPay (in-house) and PayDirect (Nigeria interbank rail)); Banking / BaaS (FSDH Merchant Bank Limited (in-house)); Lending (FSDH Merchant Bank Limited (in-house), Short-term/tenored lending (<1 year), Medium-to-long-term tenored facilities, Debt & Bridge Financing and 4 others); FX & payouts (FSDH Treasury & Global Markets (in-house)); Investing (Pal Pension (FSDH group affiliate)).

Where is FSDH Merchant Bank headquartered?

FSDH Merchant Bank is founded in 1992 and headquartered in Lagos Island, Lagos, Nigeria.

How much funding has FSDH Merchant Bank raised?

FSDH Merchant Bank has raised $50M in total.

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