Evolution of Digital banks in Nigeria 1

How Digital Banks in Nigeria Are Quickly Reforming the Banking Industry

Nigeria is a country that has an always growing population. As a result, the demand for banking services is also increasing rapidly and this has resulted in the growth of digital banks in Nigeria. In this article, we will discuss how digital banks in Nigeria are quickly reshaping the banking industry by offering new ways of doing business with mobile banking solutions.

Technology and Banking

Banking in Nigeria has generally taken a new turn with the arrival of fintech startups; there has always been a need to make banking services accessible.

The move from conventional to computerized banking has been slow but continuous, as digital banks are finding more ways to deliver banking services online; a threat to traditional banks.

While banks have been in existence for as long as possible in one form or the other, one thing is certain: banking has continued to evolve and become more institutionalized with time. The earliest forms of digital banking emerged in the 1960s, with products (ATMs and debit cards) that gave customers access to their funds at all times, regardless of the time or day.

advent of digital banks in Nigeria

When the internet was initially introduced, banks used it for their internal operations. As time went by, the internet increased the capabilities of banks. They saw that the possibilities were limitless. With the introduction of the internet to banking; banks have been able to considerably reduce time spent on performing transactions and also reduce foot traffic to the bank.

Also read: Creating a sub-account on Lenco

How do they work?

Digital banks in Nigeria are a different type of financial institution that can provide you with a better experience than traditional banks. They operate differently from conventional institutions, and they offer services to their customers through an app or website that allows them to complete transactions quickly and efficiently.

Digital bank accounts are also convenient because they allow users to make payments directly into their accounts on any device with internet access—including smartphones, laptops, or tablets. This means that you don’t have to use physical money at all if it’s available; instead, everything is done electronically via an app or website interface which makes things easier for you.

Evolution of Digital banks in Nigeria 2
Evolution of digital banks in Nigeria

The future of finance is going digital, and digital banks are about empowering your to access this future.

Over the past decade, the banking industry has been undergoing a major transformation. From being purely paper-based to using technology to digitally record transactions and save you time, digital banks are changing our lives for the better!

To be clear: there are many benefits to using a digital bank (and we’re not just talking about saving money). Here are some of them:

  • They help you save time and money by eliminating manual processes like writing checks or filling out deposit slips. Digital banks allow users to do all their banking from one app or website—there’s no need for physical checks or deposit slips anymore!
  • They make it easier for small businesses to grow because they can get access quickly through mobile devices like smartphones or tablets instead of having limited access during business hours only.
  • Digital banking makes transactions faster. The speed with which you can complete your transaction is directly linked to the type of technology used to process it. As such, digital banks offer superior transaction speeds compared with traditional brick-and-mortar institutions that rely on paper documents and manual checks during payment processing.
digital banking on the go
  • Digital banking makes transactions more secure. With the advent of digital banking, security for your money has never been tighter. This is because these banks use advanced encryption algorithms to protect data from being hacked or stolen by third parties who may seek to do harm to innocent people with ill intent. As such, it’s much safer than carrying around cash in your wallet or purse when making purchases at stores or restaurants.

These days, it is easier than ever to access your bank account online. You can do so from any device with an internet connection and a compatible browser or app such as Chrome or Firefox. Simply log into your account and view all of your recent transactions. You’ll also be able to transfer funds between accounts, pay bills electronically, and more.

Digital banks in Nigeria

Nigeria’s banking sector has adopted digital banking as more and more fintech startups are emerging. Digital banks in Nigeria come with a world of opportunity to address important banking issues in other ways to cater to a youthful and web-dynamic populace, provide access to finance, and have an expanding focus on customers.

Both retail banks and fintechs in Nigeria are utilizing computerized advancements in banking to eliminate issues in an energizing and advanced way.

A digital bank usually has no physical infrastructure, no banking hall or branch, but it offers similar services that conventional banks offer. Digital banking is different from online/internet and mobile banking.

While online or internet banking is offered as a complementary solution by traditional banks, it is close to mobile banking. Both online and mobile banking allow customers to perform certain transactions remotely.

We have about seven digital banks in Nigeria: ALAT, Kuda, Rubies, Eyowo, V by VFD, Sparkle, and Lenco. They all come with financial service solutions powered by technology.

Lenco

Lenco Logo

Lenco provides affordable banking solutions to businesses; you do not have to drown in bank charges or fees. With Lenco, you will be able to run a business account with minimal cost in order to successfully grow your business.

You get to have a smooth business banking experience without having to pay exorbitant fees in order to maintain the account. Your transactions can be performed seamlessly online, with internet banking and the app.  

You have access to customer support if you require assistance. You can also open your business bank account from the comfort of your home via this link. Our accounts are easy to open, maintain, and operate.

Conclusion

In the end, the future of banking is bright. It’s not just about the technology at play but also about the philosophy behind it. This new digital bank philosophy makes your financial future more secure and less prone to human error.

The advent of digital banks in Nigeria has really improved the banking industry. The benefits are clear; you can access them whenever you need them with no complicated procedures or paperwork required by traditional banks.


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