10 Top Digital Banks in Nigeria [year] – TechReen

Nigeria is now in the midst of an economic recession. This has had a negative impact on the Nigerian banking industry, leading to the closure of several banks in the country. This will be an excellent opportunity for people to embrace digital banking as the future of the financial industry.

Digital Banks are financial institutions that provide online payment and investment services through mobile devices and the Internet. Digital banks grew rapidly from 2016 to 2020. In this document, we have compiled a list of the top 10 digital banks that are expected to experience high growth between 2021 and 2026 in Nigeria.

Nigeria’s Top 10 Digital Banks in 2021

1. V for VFD (Vbank)

V for Vfd (vbank)

VFD (Virtual Financial Dal) is a subsidiary of Vodacom and was launched in Nigeria on March 8, 2020. The bank obtained a license to operate as a virtual payment bank from the Central Bank of Nigeria. The bank provides savings and credit services, among others.

The bank reached 100,000 clients in 6 months of opening. Currently, the bank has more than 500,000 registered users and more than $ 11 million in disbursed loans. It also serves over 10,000 merchants in Nigeria at the click of a button and has processed an estimated $ 500 million worth of transactions in one year.

2. ALAT digital bank

Alat Digital Bank
Alat Digital Bank

In June 2018, the Central Bank of Nigeria licensed 3 new banks. These new digital banks are Fincare Remit, a subsidiary of FBN Holdings, Transcorp e-Wallet and Alat.

Alat Digital Bank started in 2017 with the aim of providing financial services to unbanked Nigerians and electronic payment solutions for businesses on a national scale.

Alat is the first universal payment solution in Nigeria that aims to solve the problem of fragmentation facing the Nigerian electronic payments space and also foster financial inclusion. Provides a solution to merchants to facilitate payment processing.

The bank allows customers to deposit money through cash or direct deposit, withdraw funds through cash or ATM withdrawals, and transfers between accounts.

3. KUDA digital bank

Kuda digital bank
Kuda digital bank

The digital bank received the Virtual Payment Bank license from the Central Bank of Nigeria in 2018 and was launched in 2017. It offers customers savings accounts that pay between 6% and 7% interest.

The bank also offers secured loans, including 12% gold. Provides business solutions for payment processing through KUDA e-Wallet and a mobile application.

The bank also accepts funds from other bank accounts, cash deposits, and withdrawals. It has a partner network of more than 200,000 registered merchants, including major supermarkets and retail chains.

Four. Rubies Digital Bank

Rubies Digital Bank
Rubies Digital Bank

Rubies Digital Bank closed $ 25 million pre-launch financing from a group of international investors in January 2018. It obtained a virtual bank license from the Central Bank of Nigeria in the same month.

The bank is currently hiring technical and senior management staff across the country to drive its standards in terms of service delivery, customer experience, and regulatory compliance.

The bank provides a personalized digital platform that allows clients to manage their funds from multiple accounts through a single account. It also offers loans of up to one million naira at a maximum interest rate of 12%. In addition, the bank will have a partner network of more than 200,000 merchants in Nigeria.

5. OneBank

Onebank
Onebank

OneBank completed its application for bank registration with CBN in July 2017. The application was finalized after submission of the relevant documents in December 2017.

OneBank received an electronic money license from the Central Bank of Nigeria to operate as a mobile wallet and an electronic money issuing company in November 2017. OneBank obtained a virtual payment bank license from the Central Bank of Nigeria in June 2018 , while it received a banking license from the Central Bank of Nigeria in October 2018.

6. Sparkle Digital Bank

Sparkle Digital Bank
Sparkle Digital Bank

Sparkle Digital Bank received a virtual banking license from the Central Bank of Nigeria in June 2018. The bank obtained its electronic money license from the Central Bank of Nigeria in September 2018. Sparkle Digital Bank was officially launched on September 19, 2019.

7. Eyowo digital bank

Eyowo digital bank
Eyowo digital bank

Eyowo Digital Bank is expected to be the seventh digital bank to launch in Nigeria. Eyowo is a Money Deposit Bank (DMB) licensed to operate as a Payment Solution Provider (PSP).

Eyowo offers business process outsourcing services to both companies and individuals. The bank also offers a mobile money transfer service called ‘Wire Transfers’ for the secure and instant international sending of funds to Nigeria via any local business bank account at a highly competitive exchange rate with a withdrawal of funds in a local bank branch in Nigeria.

8. Gomoney

Gomoney
Gomoney

Gomoney is a digital banking platform that allows Nigerians to buy, sell, and convert local currency into bitcoins. It was founded in 2011. Gomoney operates on a mobile application platform through which users can deposit and withdraw money, buy and sell bitcoins.

The digital bank also offers business solutions such as payment processing, IBFT (Inter-Business Funds Transfer) within Naira currency only (no conversion to dollars or any other currency required). It also has a partner network of more than 200,000 registered merchants in Nigeria.

9. Fundall Digital Bank

Fundall Digital Bank
Fundall Digital Bank

Fundall Digital Bank received a virtual payment banking license from the Central Bank of Nigeria in October 2018. The bank began processing client requests to open checking and savings accounts in the Nigerian currency, Naira.

Fundall offers a mobile money solution for its clients. The Fundall Mobile wallet is a fast and easy way to deposit, withdraw funds from your Fundall account, and instantly send money to friends, family, or business partners via their mobile phones.

The bank also offers the following services:

  • Instant cash withdrawal from any ATM
  • Transfer of accounts from other banks
  • Transfer of mobile money to other bank clients FAST !!!
  • Transfer from Fundall account to any MPESA number in Kenya
  • Top up airtime for all networks around the world.

10. Mintyn

mint
Mintyn

Mintyn is a Nigerian based digital bank offering personal banking services. Mintyn offers personal loans, online card access, and single card payments for all ATM withdrawals. The service includes a free Direct Debit service that allows the payment of utility bills such as DSTV, cable TV, Airtel, Etisalat, Ntel, etc.

Mintyn is the 10th digital bank to launch in Nigeria on our list, although it was launched in September 2007. The bank also offers an instant mobile card recharge service called MintChips that allows users to instantly recharge their mobile lines by sending money directly. to any mobile phone number in Nigeria.

The bank also offers the following services:

  • Loans
  • Card access (for ATM withdrawals)
  • Business account (personal bank account for small businesses)

Instantly send money to friends, family or business partners through their mobile phones.

The bank also offers the following services:

  • Instant cash withdrawal from any ATM
  • Transfer of accounts from other banks
  • Transfer of mobile money to other bank clients FAST !!!
  • Top up airtime for all networks around the world.
  • Online card access and single card payments

Final thoughts

Although, only 10 digital banks worldwide have registered profitability. There have been a large number of reported suicide cases in India due to its unavailability. Nigeria’s central bank and financial regulatory agencies need to take proactive steps to ensure there are no unnecessary losses and disruption as the launch of these digital banks progresses. Small and medium business owners are also encouraged to open accounts with digital banks for easy access to financing, especially at the point of sale.

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