Six Top Digital Banks in Nigeria and Their Features
Shalom Solomon
Digital banks are actually a recent trend in the Nigerian Fin tech industry. And they are a welcome development for people who do not enjoy the hassle of standing on long queues, filling forms and other sorts of inconveniences experienced in brick and mortar banks.
That is not the only advantage digital banks have. In addition to the convenience of banking anytime and anywhere you want, digital banks also offer high interest rates on savings and fixed deposit accounts, compared to brick and mortar banks.
Though, digital banks are meant to have no affiliations to brick and mortar banks, ironically, the first digital bank in Nigeria was created by a physical bank.
In it's 70th year of operation, Wema Bank in 2017 under it's now retired CEO launched the first digital bank in Nigeria, ALAT.
Although some people argue that it is not the first digital bank given that it was created by a traditional bank.
Be that as it may, after the creation and launch of ALAT, other digital banks were also created.
Photo Credit: Dreamstime
The Top Digital Banks in Nigeria
1. ALAT
- Was launched by WEMA bank under it's now retired CEO, Segun Olaketuyi
- Launched in 2017
- Liscenced by the CBN as a Microfinance Bank
- Offers 10% interest on savings
- Charges ₦50 for interbank transfers
- Supports cashless withdrawals
- Offers loans of up to ₦200,000
- Accepts deposits
- Supports bill payments
- ATM withdrawal with debit card
- Has over 500k downloads on Google Play Store
2. Kuda
- Was founded by Babs Ogundeyi and Musty Mustapha
- Launched in 2018
- Approved and Liscenced by the CBN as a Microfinance Bank
- 10-15% interest on savings
- Offers 25 free transfers/month, then charges ₦10
- Offers overdraft with interest of 0.3%/day for regular customers
- Accepts deposits
- Free withdrawal from only Zenith bank ATMs across Nigeria
- Free Kuda Master Card
- Over 1 million downloads on Google Play Store
3. Rubies
- Founded by Temitope Olakunle
- Launched in 2019
- Liscenced by the CBN as a Microfinance Bank
- 2-5% interest on savings
- Charges ₦10 for interbank transfers
- Does not offer loans
- Issues free debit cards
- Supports bill payment
- Accepts deposits
- Has over 100k downloads on Google Play Store
4. Eyowo
- Founded by Tomi Amao
- Launched in 2017
- Liscenced as a Microfinance Bank by the CBN
- Offers 5-13% interest on savings
- Charges ₦10.50 - ₦52.50 for interbank transfers
- Offers loans (overdrafts) with 0% interest
- Supports deposits through transfers, Eyowo vouchers or debit cards
- Does not issue debit cards
- Has 50k+ downloads on Google Play Store
5. V by VFD
- Owned and led by the VFD group
- Launched in 2020
- Registered and Liscenced as a Microfinance Bank by the CBN
- Offers 8-14% interest on savings
- Free interbank transfers
- Supports cardless withdrawal
- Offers loans
- Supports bill payments
- Over 100k downloads on Google Play Store
6. Sparkle
- Founded by former Diamond bank CEO, Uzoma Dozie
- Launched in 2020
- Liscenced by the CBN
- Offers no interest for savings
- Free interbank transfers for first 200,000 users till June, 2021
- Supports bill payments and airtime recharge
- Issues virtual debit card
- Over 100k downloads on Google Play Store
So, If you are tired of traditional banking methods and wish to bank at your convenience, you can try any one of these banks. They are all fully registered and liscenced by the Central Bank of Nigeria Microfinance Banks.
Thanks for reading :)
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