You’re probably here in search of the best digital bank that suits your transactions. Of course, it is right to make some findings of what you’re about moving into. Let’s start from the basics.
What are digital banks?
Digital banks are not online banking platforms used by commercial banks to ease their workload, but they are independent online banks. By this, I mean that they are virtual banks that exist online alone with no physical bank building or hall. Digital banks may have a physical headquarter but doesn’t have branches like other commercial banks. The only way to these banks is through their mobile apps, website, or The Unstructured Supplementary Service Data (USSD) code.
Notwithstanding, they can perform all tasks like buying airtime, receiving money, depositing money, making transfers, saving money, giving loans, and all other things done by normal commercial banks.
How to choose the best digital bank
This article will lead you through the best digital banks in Nigeria. But while going through the article, there are things you should look out for so that you’ll be able to make the right choice as to which bank to go for. Look out for
- Financial products: knowing the products and services the bank provides is important. Is the bank based more on loaning, or saving or expenditure management? Ask and answer the question.
- Digital tools: know what digital tools the bank has or those they don’t have. Does the bank offer debit cards, virtual dollar cards? Do they have a user-friendly mobile app? Ask and answer the question.
- Bank charges: you should also consider how much or little the bank charges per transaction.
- Interest rate: Lookout also the interest attached to their loans and savings. It will help.
Best digital banks in Nigeria
Though most people find it difficult to entrust their money to online handles, you have no fear if it’s in Kuda bank. Kuda bank was created by a longtime finance manager Babs Ogundeyi. It is licensed by the central bank of Nigeria. And your money is safe with Kuda because every deposit is insured by the deposit insurance cooperation (NDIC). Kuda bank app is available at Google play store and apple play store. Kuda is a simplified banking platform that allows many of the under-listed features
- Allows you to recharge your mobile phone, transfer money, receive money and check your balance just like any commercial bank.
- Offer debit cards to your doorstep for free once you apply for them.
- No card maintenance fee is charged.
- Allows 25 transfers free of charge monthly before charging #10 per transaction.
- Renders loan services or overdrafts at an interest rate of 0.3% daily.
- There are no fees attached to the withdrawal
- You can also earn #200 for every person you refer to the app.
- Kuda saving plans receive 15% interest yearly.
- Gives short-term loans.
- App interface is very much user-friendly.
- Budgeting tools help in regulating the users’ expenditures and encourage savings.
V bank is one of the best digital banks. It was created in April 2021 and is owned by VFD Microfinance Bank, but has gained over 250,000 customers. With your full name, email, BVN, password, valid ID card, and phone number, you can open an account with V bank. V bank performs all kinds of transactions with no charges attached. With V bank, you can
- Perform cardless withdrawals with their 3.0 version.
- Save with the V target savings alternative.
- Receive instant loans
- 14% interest on every deposit on the fixed deposit account.
- Own a joint account
Sparkle is one of the best digital banks in Nigeria and offers quality banking services. It was launched in 2019 by the former Chief Executive Officer (CEO) of the defunct Diamond Bank, Uzoma Dozie. The bank offers its customers both personal and business accounts. The digital bank has over 20,000 customers. Opening an account with sparkle on your mobile phone is easy. The app is available for iOS and Android systems. Other sparkle features are
- Sparkle Stash; helps you save up cash by taking a percentage off all your debit transactions, or saving together with a group of other Sparklers. Another saving alternative allows you earn 3.75% per annum interest rates if you have a minimum amount of ₦100,000.
- Sparkle has virtual and physical cards you can use for both physical and online shopping.
- Sparkle has features to help companies with management operations like access inventory, invoice tools, taxation, and payroll tools using the app or website.
ALAT is one of the oldest digital banks created by Wema bank and launched in 2017. The bank requires a phone number, BVN, full name, and address. Alat is available for Androids and iPhones. With ALAT, you can
- create a virtual dollar card with which you can easily convert Naira to the dollar.
- Supports savings which leave you with 10% interest annually.
- Receive a maximum loan of 200,000 with the ALAT app.
- Deliver free debit cards to customers’ doorstep.
- Transactions with the bank are easy.
- With your details available, account creation is within few minutes.
Mint is also another neo bank that provides irresistible banking services for Nigerians. Mint was created by Finex Microfinance Bank LTD and licensed by the Central Bank of Nigeria. You don’t have to be scared of your deposits because they are insured by the national deposit insurance cooperation ( NDIC ). Amongst the features of mint are
- No bank or card maintenance fee
- No charges attached to transactions.
- Payments and transfers can be scheduled.
- Allow you to set spending limits with a personalized money tracker.
- Gives instant loans to customers who have used the bank as their salary account for more than two months.
- Create and lock virtual cards.
- Own a current account with at least #2000
- Allows you to invest too; #5000 can get you 30.5% interest annually.
- Available for Android and iOS.
Rubies is a fully digital banking platform based in Nigeria. It has zero service charges for transactions within the same bank but a #10 service charge for interbank transfers. The bank has a well-functioning mobile app for iOS and Android that customers can access all banking services. You can easily send and receive money using the money request features.
- Rubies bank gives a debit naira card for ATMs and transactions and a virtual dollar card for online transactions and payment.
- With Rubies, you can also invest.
- Saving with rubies gives you 20% interest.
The one bank is an online bank owned and managed by Sterling bank. You can make payments, receive money, and pay bills with the digital bank app. It is available for both Androids and iOS. With the one bank app, you can open both current and savings accounts. The Current account has Domiciliary and Classic sub-account types, while the Savings account has Trybeone for campus students and Kia Kia for individuals without documentation and valid ID cards. Loan as much as 5 million nairas can be rendered by one bank without collateral.
Eyowo bank was launched in Lagos, Nigeria in 2019. Iowa has features that let you send, receive, save, spend and borrow money using only a phone number. Its features include
- Zero-interest loans.
- Issuing virtual cards.
To access Eyowo, you can use their website www.eyowo.com, mobile app, USSD code *4255#
The Fundall bank like every other digital bank, allows you to send and receive money, get loans and even buy online things. The bank is registered with Cooperate Affairs Commission of Nigeria. With their headquarter in Lagos, Nigeria, Fundall bank has over 14,000 customers. With this bank, you can
- Find the simplest tools for budgeting.
- Open an account with zero balance.
- Manage finance properly
- Save properly
- Schedule bill payments
- Completely secured by professionally managed
- Earn bonus per transaction.
- Get insurance and manage your money with spending analytics.
You can generally do all banking transactions with no hidden fees.
With the go money digital banking app, you can create an account with go Money bank and perform all sorts of banking transactions with reduced bank charges. goMoney bank is highly secured a d insured by the NDIC.
- Debit cards powered by master cards are issued to customers on application.
- Give regular reports on transactions and delivers a comprehensive account statement
- Payments are simplified by making available payment requests, reminders, and enabling the sharing of payment receipts.
Having discussed the top ten digital banks, I discovered a common feature amongst them. They all have little or no bank charges attached to their transactions compared to the commercial banks we use. Switching over to a digital bank is not a bad option at all. I also believe you heed my initial advice and were able to look out for some features to help you choose the best out of the bests.