- Online banking in Nigeria is growing exponentially, with many platforms springing up over time
- Platforms like Opay, PalmPay and Kuda Bank, among others, are leading savings and payment platforms in Nigeria
- Recent data suggest that Nigeria has some of the most tech-savvy youth populations who use these platforms
Digital banking in Nigeria is nascent and has been embraced by Nigeria's tech-savvy population.
Most of the new online banking and savings platforms have been boosted by the current fintech boom in the country and worldwide.
Banks target youth population in Nigeria
Many of the digital platforms in Nigeria are primarily targeted at the vibrant and savvy youth who see traditional banking as a bore, yearning for innovation and creativity.
PAY ATTENTION: Join Legit.ng Telegram channel! Never miss important updates!
CBN policies have encouraged the growth of the country's digital banking and savings platforms.
There has been an influx of new digital banking and savings platforms, both indigenously grown or foreign-owned.
Statistics put the number of active bank accounts in Nigeria at 134 million, meaning over 60 per cent of Nigerians own bank accounts. The figure is, however, different as CBN data says Nigeria's underbanked and unbanked population are in rural areas.
Opay -15 million customer base
Opay, a fintech firm established in Nigeria, launched its payments platform in Nigeria in 2018. The company, which operates a cluster of digital payments, loan and savings platforms, has gone on to amass a vast customer base in the country.
According to reports, Opay is Nigeria's most significant payment and digital savings platform, with about 15 million customer base.
It has also accessed the most significant Point of Sale business in Nigeria, with three in every user reportedly using the platform.
It has grown its offering to allow payments for utility bills and real-time money transfers to banks and others.
Its mobile wallet access is projected to reach 19 per cent of Africa's population by 2025.
As of 2020, Opay is valued at $2 billion and has a revenue of $38 million.
It operates in Nigeria, Kenya and Tanzania and processes about 100,000 transactions daily on average.
Its users in Nigeria have saved over $3 billion in the last five years. The company's market share in Nigeria is over 21 per cent, surpassing MTN Momo, KongaPay and PalmPay.
PalmPay - 10 million customer base
On November 1, 2022, PalmPay, one of Nigeria's leading digital payments platforms, announced a 10 million customer base milestone.
The company is hot on the hills of the market leader, Opay, to achieve and access Nigeria's digital payment market.
Access Bank, GTB customers have best experience as report says 59% Nigerians fall victim to E-banking fraud
PalmPay's aggressive pursuit of innovation and diligent customer care is one of its driving forces and has amassed huge customers across Nigeria.
The company said that the pandemic had accelerated a significant shift from cash to digital payments, which is taken leveraged.
Kuda Bank - 4 million customer base
Touted as Nigeria's digital-only bank, Kuda Bank launched operations in Nigeria five years ago.
The bank reportedly redefined banking and put traditional banking on edge with its top-notch, cutting-edge technology.
Kuda Bank continued to evolve in its services and was among the first banks in Nigeria to initiate free transfers to other banks.
The bank has also witnessed an influx of significant funding from venture capitalists, which see enormous prospects for the bank.
It recently raised about $500 million in funding and announced plans to spread its tentacles to the United Kingdom.
Promoting itself as the bank of the free, Kuda Bank has successfully lured Nigeria young and urban population.
PiggyVest - 4 million customer base
Investment and savings platform, PiggyVest, announced a customer base of 4 million as recently as October 2022.
The company, which operates many investment options, said it had processed over N100 billion in customer payments.
ALAT by Wema - 1.5 million
ALAT by Wema, a self-styled first digital bank in Nigeria, boasts a 1.5 million customer base.
The digital platform, owned by a first-generation bank, Wema Bank, is one of Nigeria's few digital banks and savings platforms with a large customer base.
Despite not leveraging its parent company's physical presence, ALAT has lured young Nigerians into its net.
Top savings platforms paying higher interest rates than banks in Nigeria
Recall that Legit.ng reported that the Nigerian financial industry landscape is laced with interesting options, most of which give users the ability to make a choice that allows them optimal use.
While some banks in Nigeria are paying higher interest to depositors for saving money with them, others are just there to make profits and post interesting figures at the end of their financial year.
The minimum interest rate approved by a regulatory agency like the Central Bank of Nigeria (CBN) is 1.5 per cent.