Top 5 digital banks in Nigeria and how they are revolutionising financial services
With the rise of digital technology, online banking has become a key part of modern finance in Nigeria. Digital banks such as Kuda, ALAT, and OPay offer user-friendly apps, fast money transfers, interest-earning savings, and low fees. Discover the top digital banks in Nigeria and how they are transforming financial services across the country.
Source: UGC
TABLE OF CONTENTS
Key takeaways
- Online banking is growing fast in Nigeria, as both traditional and new banks now offer digital services.
- Top online banks in Nigeria include Kuda, ALAT, OPay, and V Bank.
- These digital banks provide 24/7 access, lower fees, and smart features like instant loans and automatic savings.
Top 5 digital banks in Nigeria
Nigeria is known as Africa’s top digital payments country. Its digital banks are changing traditional banking by offering easy-to-use apps, new financial services, and low fees, making banking simpler and available to more people. Discover more details about the top digital banks in Nigeria below:
1. Kuda
Source: UGC
- Founded: 2019
- Headquarters: London, United Kingdom
- Founders: Babs Ogundeyi; Musty Mustapha
Kuda Technologies Limited, simply known as Kuda, is a Microfinance Bank and fintech company operating in Nigeria and the UK. It was founded by Babs Ogundeyi and Musty Mustapha in 2019 and has since become one of the top digital banks in Nigeria.
Kuda provides many services for both personal and business banking. For personal use, it offers free transfers, cashless payments, savings with interest, and ways to invest. For businesses, Kuda Bank has tools like payroll, expense tracking, and different payment options.
Key features of Kuda Bank include:
- Allows free money transfers to any Nigerian bank.
- Provides a debit card with no maintenance fees.
- Offers smart tools to help plan and track spending.
- Enables automatic savings that earn interest over time.
- Gives instant personal loans with little or no paperwork.
- Features a simple app for easy banking anytime.
- Supports businesses with payroll and expense management tools.
2. ALAT by Wema
Source: UGC
- Founded: 2017
- Headquarters: Lagos, Nigeria
- Founders: Wema Bank PLC
ALAT by Wema is Nigeria's first fully digital bank, launched by Wema Bank. It allows users to open accounts, transfer funds, pay bills, and even access loans, all through its mobile app or website.
ALAT by Wema offers automatic savings plans and 24/7 access to banking, so users can manage their money anytime, anywhere. Other services include adding money to your account, paying bills, sending money, and getting loans — all through an easy-to-use app
Key features of ALAT by Wema Bank include:
- Instant low-interest loans.
- Automated savings plans with rewards.
- Offers both payday loans and larger credit facilities.
- Offers a virtual dollar card to make seamless international payments.
- You can easily pay your bills from the comfort of your own home.
3. Vbank
Source: UGC
- Founded: 2020
- Headquarters: Lagos, Nigeria
- Founders: VFD Microfinance Bank
VBank, launched in March 2020 by VFD Microfinance Bank, is among Nigeria’s top digital banks. Offering a fully digital banking experience, the fintech has become known for its flexible, high-interest savings accounts and quick customer support.
Vbank offers a variety of Universal Accounts, including Current, Corporate, Joint, and Child Accounts. These accounts offer savings options, like target, child, and fixed deposits, to help customers reach their financial goals. Below are some key features of Vbank:
- Offers up to 10% interest on savings, making it ideal for growth-focused savers.
- Provides joint accounts and children’s accounts.
- Provides bill payments, airtime top-up, and fund transfers.
- Offers savings plans with interest and easy tracking tools.
- Enables free money transfers with no hidden charges.
- Includes cardless withdrawals from ATMs for more convenience.
- Supports business tools like payroll and expense tracking.
4. Moniepoint
Source: UGC
- Founded: 2015
- Headquarters: Lagos, Nigeria
- Founders: Tosin Eniolorunda and Felix Ike
Moniepoint is one of Nigeria’s leading digital banks, offering seamless financial services to both individuals and businesses. Founded in 2015 by Tosin Eniolorunda and Felix Ike, Moniepoint Bank began as a provider of payment solutions for banks and financial institutions.
Over time, it has expanded its offerings to include personal banking services, aiming to make banking more accessible and efficient for Nigerians. The bank's key features include:
- Provides instant debit cards that can be delivered within 48 hours.
- Supports round-the-clock transactions, including money transfers, bill payments, and airtime purchases.
- For businesses, Moniepoint offers tools like point-of-sale (POS) terminals, expense management, and access to loans.
5. Opay
Source: UGC
- Founded: 2018
- Headquarters: Lagos, Nigeria
- Founders: Zhou Yahui (through Opera Group / OPay Inc.)
Launched in 2018, Opay Bank has grown from a simple mobile payment app into one of Nigeria’s top digital banks, now offering full banking services for individuals and businesses. It is especially used by online sellers and small business owners who need fast, easy, and reliable banking. The bank's main features are:
- Offers zero account maintenance fees for all users.
- Provides fast wallet-to-bank and bank-to-wallet transfers.
- Allows easy bill payments and airtime purchases in-app.
- Supports merchant payments for small and online businesses.
- Gives access to virtual cards for international shopping.
- Includes fast, 24/7 customer support.
- Opay provides loan options for users.
Is Opay a digital bank?
Opay is a digital bank, also known as a neobank.
Can I open a Kuda bank account online?
You can open a Kuda bank account online. You can either download the Kuda app from the Google Play Store or the Apple Store, or open an account through your browser.
Is Kuda Bank licensed by CBN?
Kuda Bank is licensed as a microfinance bank by the Central Bank of Nigeria (CBN).
Can you open an online bank in Nigeria without BVN?
You can open a bank account in Nigeria without a BVN, especially with some online and digital banks.
Digital banking is growing fast in Nigeria, thanks to more people using smartphones and the internet. Top digital banks in Nigeria, such as Kuda, ALAT, and Moniepoint, are changing the way people and businesses manage money. With helpful features like instant transfers, savings plans, and 24/7 support, these banks make financial services more accessible, affordable, and efficient.
Legit.ng recently published an article about the top tech startups in Nigeria, ranked by their market value and funding. The Nigerian tech startup scene is growing fast, with many companies getting high market values and lots of funding.
These startups operate in various sectors, including fintech, e-commerce, mobility, and logistics. They are also creating jobs, improving technology, and helping the economy. Here are the tech startups in Nigeria ranked by their market value and funding.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
