This article discusses the best digital banks in Nigeria by microfinance banks.
Low costs, ease of use, and, most importantly, a seamless internet-based transactions have allowed online banks to progressively threaten traditional brick-and-mortar banks around the world in recent years, and Nigeria is no different.
If one of your goals is to simplify your banking portfolio, you may be considering digital banks to save money and time, but aren’t sure which one is ideal to replace your pricey and time-consuming traditional checking account.
If you want to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (advice@adamfayed.com) or use WhatsApp (+44-7393-450-837).
We recommend that most wealthy locals and expats invest offshore despite this list, and we can help with that.
Here are the ten best digital banks in Nigeria categorized under three types: digital banks by microfinance banks, digital banks by fintechs, and digital banks by traditional banks.
In discovering best digital banks in Nigeria, it is also helpful to consider financial providers for your investment needs.
Digital Banks in Nigeria by Microfinance Banks
Despite not being as well-established as traditional banks, microfinance institutions and fintech firms frequently deliver excellent services due to their more innovative and technologically savvy workforce. They may not always be able to compete in terms of breadth of offering, but they may be the only ones to offer a certain feature that you want.
They’re also a secure choice in terms of security, as they’re overseen by the Central Bank of Nigeria. While microfinance organizations store your money and are guaranteed up to 200,000 by the Nigeria Deposit Insurance Corporation (NDIC), some digital banks provide accounts through a third-party source, which is normally NDIC insured.
1. Kuda Bank
Kuda, a microfinance bank based in Lagos, bills itself as “the bank of the free,” and it’s difficult to argue: most of their services are completely free, from their account to their free Visa debit card as long as you have at least ₦1000 on your account. This digital banks also offers free ATM withdrawals, free bills payment, free cash deposits, and up to 25 free money transfers to other banks per month.
Kuda also provides fixed-term savings plans with yearly interest rates of up to 15%, automated save-as-you-spend, full budgeting and expenditure analysis options, and even overdraft loans to regular customers. All of this is accessible via their well-designed app or website, and if you’re conscious of your data use, you can even access your account using their USSD code.
The app has a beautiful design that blends in with your smartphone and is free of the high fees that traditional banks usually levy on their customers. This app simplifies budgeting, saving, and wise spending.
To get started, simply download the app and provide the necessary information. Following that, you may apply for a debit card that will allow you to withdraw cash. Transactions aren’t a problem. You can accomplish anything with your money straight from the app.
2. VBank
VBank is a digital bank based in Nigeria that offers personal and commercial financial services. With simply your cell number and BVN, you may open a VBank account in 2-3 minutes. Its mobile app developed by VFD, a well-known microfinance bank located in Lagos.
The VBank was established in April 2021 and holds a digital banking license. Since then, the bank’s customer base has swelled to more than 250,000.
Their free V account comes with all of the usual features that their rivals provide, such as a Verve debit card, loans and interest-bearing savings accounts, and extensive analytics and budgeting services, all accessible via their app or USSD code. So basically, any transaction that a traditional bank would allow is possible with a VBank account.This includes banking transactions such as withdrawals, bank transfers, bills payments, and savings.
They also have a community-based referral system called Veelage, as well as other unique features including joint accounts, tap to pay, and even WhatsApp banking.
To enjoy cardless withdrawals, various fund transfers, and other features, download the latest VBank 3.0 version.
3. Rubies
Rubies is a microfinance institution in Nigeria that provides a variety of services to other financial institutions and to its own personal and small business banking products.
Aside from standard features like physical and virtual cards, bills payments, savings accounts (with no interest), USSD codes, and budgeting tools, their account also allows you to work as an “independent banker,” earning a commission on any fee-incurring transaction made by individuals you’ve referred, as well as directly investing your money.
Rubies also has a unique supervised junior account that allows your youngster to learn about money management.
When customers open an account with Rubies Bank, they may create virtual dollar cards. Rubies is one of the best digital banks in Nigeria that assists in future billing management. Rubies also offers savings and investment options, as well as the ability to request money and issue invoices. Rubies is a free android and iOS app available on Google Play and the App Store.
4. Sparkle
Sparkle is another reputable Nigerian digital bank founded by Uzoma Dozie, the former CEO of Diamond Bank, which is now owned by Access Bank. Sparkle has two accounts, one for personal usage and the other for business purposes. The personal account comes with a debit card, a spending tracker, customizable savings, bills payments, and other financial services.
Sparkle is the institution’s most devoted digital bank when it comes to business accounts, even providing services like payroll or invoicing management. You’ll be in charge of inventory management, sending out invoices to customers, and analyzing your payments through the Sparkle business account.
Their all-digital personal account, on the other hand, is nothing to scoff at, with real and virtual Visa debit cards, interest-bearing savings accounts, social payments, budget planning and analytics with an AI assistant, and even an esusu function for community savings, among other things. Your first physical debit card will cost you $₦1500, but your first digital debit card is free, and you may earn a loyalty rewards and a lot of discounts by using it at Sparkle’s partners.
5. Mintyn
Mintyn, formerly known as Mint, is Finex Microfinance Bank’s all-digital products such as private and business bank accounts, interest-bearing savings accounts, and even mutual funds and fast loans, via a tiered system that allows you to register an account without a BVN.
Mintyn provides a virtual USD Visa card in addition to their real naira Mastercard, making them an excellent alternative if you’re spending money on overseas websites that don’t take naira cards. Their app also features a tool to track all of your spending and set spending restrictions, although it still lacks a comprehensive budgeting option.
6. Eyowo
Eyowo is one of the best digital banks in Nigeria that thinks that everybody with a phone number should be able to enjoy contemporary financial services for free. As a consequence, they provide a simple and current finance program that can be accessed using your phone number.
Eyowo takes a playful approach to phone-based banking by utilizing your phone number as your account number, so you’ll always remember your account number. You may spend, save, borrow, send, and receive money with simply your phone number. You may transfer money to anybody in Nigeria who has a mobile number or a bank account. The app may be used to pay for utility bills and other items.
As a result, they focus heavily on sending and receiving money through the app even to those who don’t have it yet. However, they also provide typical banking services like a debit card and savings options, such as fixed-term interest on savings accounts and smart budgeting controls.
Conclusion
These are Nigeria’s leading and best digital banks, with a long history of providing excellent service and receiving positive comments from customers. Consider opening an account with one of Nigeria’s finest digital banks if you’re tired of waiting in lengthy lines at traditional banks and would like to take advantage of high interest rates on your deposits and savings.
Discuss your financial plans with a financial advisor if you want to move to a digital bank.
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