As days turn to weeks, weeks turn to months, and months turn to years, traditional Nigerian banks are losing ground with respect to creating an enabling environment for the ease of banking and other financial transactions. Some of the well-documented issues customers have with traditional banks are questionable charges and slow issue resolution. Sometimes, waiting for the half moon is better than holding a queue in Nigerian banking halls.
The frustrating poor communication and lack of empathy in resolving issues make traditional banks seem light years behind digital banking. It just feels like the major focus of traditional Nigerian banks is maximising profit through aggressive marketing rather than fixing issues hovering around their services.
Traditional Nigerian banks have made a lot of progress in card issuance. Some of these cards can also cover the customer while abroad. Also, many Nigerian banks are affiliated with foreign banks. Hence, moving money across the border to anywhere worldwide is possible.
It is safe to mention that in the past, people had to wait for days before cards were issued to them. But customers can now pick up their debit cards almost immediately. All they have to do is visit any of their bank’s branches. Though you still need to fill out a form, you can get your debit card on the spot.
Digital banking can be referred to as a shift from physical banking to virtual or online banking. If you can imagine banking outside the banking halls but through internet-powered apps, you have an idea of digital banking. With digital banks, the biggest plus has always been “freedom” and \”ease.”. Digital banking is a gift that keeps giving and there is a possibility it could be the first banking platform void of weaknesses or limitations.
Some digital banks, like Kuda, Rubies and ALAT have taken the game to a whole new level by promising and delivering customers efficient banking with no charges. There is definitely no better time for banking than now. With digital banks, the application for debit cards is paperless and is handed to you just a few days after applying. Digital banking has come to stay, and hardly anyone would be surprised that it leaves traditional banks stuck in the past.
Banking Platform Apps
There are currently a few of the top digital banking apps in Nigeria. Chief among them is the Mintyn Digital Bank App. This app returns financial power to customers and eliminates the risks associated with other bank apps. Mintyn Digital Bank is a subsidiary of Finex Microfinance Bank. The arrival of Mint Digital Bank has caused a watershed in digital banking in Nigeria.
Wema Bank, after 75 years of existence, launched ALAT in 2017. Since then, more and more digital bank apps have been springing up. Kudimoney, an online lending and savings platform, transformed into Kuda in 2018. In 2019, QuCoon, a financial technology and consulting firm, introduced Rubies. Eyowo was relaunched the same year – though it has been operating financial services for two years before then.
Before lockdown, VED Microfinance Bank announced the launch of the V by VED digital banking app. Sparkle launched in the middle of this year. All these digital banking apps are giving traditional banks in Nigeria a run for their money and have taken banking to Olympian heights.
Advantages and Disadvantages of Digital Banking
Traditional banks in Nigeria have increased their online presence, but it does not cover the obvious advantages of digital banking. Below are some of the advantages of digital banking:
1. Personal relationships: There are no personal relationships with digital banking. No one is responsible for or privy to your transactions. This ensures that a customer’s particulars are safe and secure.
2.Flexibility: Banking has never been more flexible than digital banking.
3. Online Experience: digital banking offers a far superior and sophisticated online banking experience.
4. Unlimited Services: Digital banks have yet to expand all the possible services they can render to their customers.
5. Cashless Facility: with digital banking, it is almost impossible to compromise the security of your deposits or cash. There is no need to carry money around. In digital banking, the cashless policy is epitomized.
6. Better Rates and Lower Fees: some digital banks do not charge a dime for their services. Interest rates are quite mouthwatering and encouraging.
There is hardly anything in life without weaknesses. Below are some of the disadvantages of digital banking:
7. Limitations: with digital banking, there are well-articulated limitations on deposits.
8. Security Concerns: theft is one of the major minuses of digital banking. Hackers might just gain access into your account.
9. No Personal Relationship: doing business with people you can see and talk to is easy. Digital banking eliminates physical rapport between the bank and the customers.
10. Interruptions: with the epileptic electricity supply in the country, it is difficult to operate a digital bank account. Also, if the technological instrument is faulty, it is impossible to do digital banking.
Digital, Online and Internet Banking Explained
When last did you visit a bank? This question might shock many, but the truth is that we are now in the era of digital banking. You do not have to go to the bank to get transactions done. All you need to do is get a digital-friendly appliance and you are good to go. However, digital banking is not online banking.
These two phenomena have been discovered to have been misconstrued by many as the same. They are different by wide margins. But it is worthy of note that both (internet banking included) have ensured that the era of carrying cash around or remitting cheques are now old-school.
It has become normal for people to confuse digital banking with online banking; the latter focuses on digitizing the main aspects of banking. But digital banking digitizes everything connected with banking. Digital banking takes everything with physical banking online. Hence, digital banking makes anything you can perform in a banking hall easier and possible.
On the other hand, online banking is about logging into your online bank account. Put simply, transactions done electronically using internet gateways can be said to be online banking.
Internet banking can be used interchangeably with online banking. It is a kind of banking that is powered electronically through the internet. Any transaction done electronically enhanced by Internet services refers to online or Internet banking.
Online or Internet banking offers customers almost every service traditionally available through a local branch, including deposits, transfers, and online bill payments.
Digital Banking Products and Services in Nigeria
Many products are associated with digital banking and the services they render to their customers. In fact, the role digital banking plays in the movement of money and other legal tenders is larger than life itself.
Digital banking ensures that customers get needed funds at their convenience. Digital banking also makes the cashless policy more effective. Digital banking guarantees business loans, merchant services, etc. Digital banking products.
Importance of Digital Banking
Digital banking has come to stay. It has ensured customers do not need to wait long hours before speaking with their bank’s customer care operative. Digital banking is also a 24/7 style of banking anywhere in the world. All you need is a device and an internet connection.
With digital banking, you can make deposits or withdrawals anywhere and anytime. Therefore, digital banking has made life easy for customers, who can now breathe fresh air. An adage demonstrates the fact that if you want to waste your time, visit any of your bank branches. But digital banking has quite outstandingly buried all that in the past.
Digital banking enables APIs and other options, enabling service coalitions to enhance the delivery of financial products and services for customers through mobile platforms, ATMs and desktop-enabled gadgets.
Features and Types of Digital Banking in Nigeria
The features and types of digital banking in Nigeria are as follows:
1. Mobile banking
2. UPIs – Unified Payment Systems
3. Internet disabled phone banking
4. Loyalty rewards and lifetime benefits.
5. Digital wallet.
6. Finance planning.
Digital Banking Trends and the State of Digital Banking in Nigeria
During the COVID-19 enforcement lockdown, Nigerians were forced to rely on digital banking. People had no reason to abandon cash transactions. Still, during the lockdown, Nigerians had no choice but to embrace digital banking through the use of ATMs, point-of-sale (PoS) machines, and other e-payment channels to pay for essential commodities as bank branches were closed.
This is a trend that has continued well after the total lockdown. People have now realised how easy banking can be with the digital banking opportunity. Moreover, the increased demand for digital products and services has ensured that banks have more favourable budgets for digital banking.
As more and more Nigerians discover the beauty and ease with which they can bank through digital banking, banks are investing more resources in digital banking. There are strong indications that this trend will continue to grow in relevance and substance.
In December 2019, Standard Chartered Bank introduced the first digital bank in Nigeria. This bank was to carry the traditional activities of physical banks to digital banking platforms. This digital bank has opened avenues for branchless, cashless, safe and secure banking transactions. This digital bank offers customers savings accounts, current accounts, fixed deposits, etc. Hence, customers can rest easy and do their banking at their own convenience.
List of Digital Banks in Nigeria
Below are some of the digital banks in Nigeria:
1. Mintyn
2. ALAT
3. Kuda
4. Rubies
5. V by VED
6. Sparkle
Currently, the best digital bank in Nigeria for mouthwatering interest rates, financial inclusion, charges, ease of transactions, flexible deposits, etc. is Mint Digital Bank. With interest rates of up to 15% annually, there is no better place to keep your money safe. Scared money makes no extra cash. Thus, putting your hard-earned money where you have the liberty to do anything should be enticing for anyone who craves financial stability.
With Mintyn Digital Bank, financial power returns to you as you continuously smile to the bank. If you crave eliminating the risks associated with digital banking, you should go for a digital bank that eliminates that. If you want flexibility in connection with your finances, you should embrace a digital bank that allows it. At this time, Mint Digital Bank does all that and more. This is why she is way above the pack.
Conclusion
The growth and evolution of digital banking in Nigeria is huge and cannot be dismissed. As the world keeps shrinking into a village, digital banking is gaining prominence. Most of the things Nigerians do are now becoming more technologically inclined.
The landscape of banking and financial services is changing. No wonder banks are now tapping into the opportunities digital banking brings to the table. There is no denying that digital banking has come to stay.
