Traditional banks have faced fierce competition from burgeoning digital banks. These digital banks have emerged with increased consumer demand and have provided a more convenient full banking experience for their users, including higher interest rates on savings, thus attracting more people to adopt their services.

This has caused some traditional banks like Wema Bank and Sterling Bank to embrace this trend and develop their own digital banking platforms.

Here is a list of the best digital banking apps in Nigeria.

Vbank

VFD Microfinance Bank is a fully digital bank that offers a wide range of financial products and services to professionals and entrepreneurs from all sectors. The digital bank has over 100,000 downloads on Playstore. They do not offer any transaction fees. Free account maintenance, monthly interest on savings, fast and secure transfers, withdrawals and bill payments.

Benefits

• Instant account opening without any paperwork.
• Fingerprint Authorization: Log in with your fingerprint and authorize transactions using your 4-digit PIN code.
• Good customer service.
• Configure and track your spending budgets.
• Order debit cards from the apps.
• USSD banking service available.
• Easy bill payments on the app.
• Target savings with an interest rate of 8%.

User complaints

• A new update causes the application to freeze.
• KYC upgrade takes relatively longer.

Kuda Bank

Kuda Bank is a free, digital-only bank with a microfinance banking license from the Central Bank of Nigeria. The bank includes tools to track your spending habits, save more and make the right money transfers. They do not charge any card or account maintenance fees. Kuda has 1M + downloads on Playstore. Its customers benefit from 25 free transfers to other banks each month.

Benefits

• Free debit cards.
• Good user experience.
• Free withdrawals at over 3000 ATMs across Nigeria.
• Annual interest rate of 15% on savings.
• No paperwork involved during registration.
• Automatic budgeting tools for easier money management.

User complaints

• Cards often take a long time to arrive.
• No SMS notification when you are credited.
• No USSD code option for transactions.
• Identity verification takes time.

AlatbyWema

ALAT is Nigeria’s first fully digital bank, designed to help you do more with your money. Alat is owned by Wema Bank. Like any other digital bank, you don’t have to go to a bank to open an account. Alat has over 500,000 downloads on Playstore.

Benefits

• Free delivery by credit card anywhere in Nigeria.
• A Virtual Dollar Card for online payments.
• Bill payment option.
• Unsecured loans are available.
• Save easily with automatic goal saving.

User complaints

• The virtual card is not yet working.
• Delay in the delivery of the physical card.

Twinkled

Sparkle is a lifestyle and finance app. It is a digital ecosystem providing financial, lifestyle and business support services to Nigerians around the world. Licensed by the Central Bank of Nigeria (CBN), Sparkle aims to help people achieve what they want, be it entertainment, education, savings or investing in the future. Sparkle has over 100,000 downloads from the Play Store.

Benefits

• Create an account with only your Bank Verification Number (BVN), email address and phone number.
• If you ever lose or misplace your card, you can freeze and unfreeze it in the Sparkle app.
• Save money by using Sparkle Stash for different purposes at the same time.
• Percentage savings where you determine what percentage of your account balance will be spent on your savings each day, week or month!
• Receive instant real-time notifications for your transactions.
• Bill payments; Pay your bills whenever you want, wherever you are.
• Spread the bills with your friends and family on the app.
• Physical and virtual cards available.

User complaints

• A new update causes the application to freeze.
• It takes time to roll back on a failed transaction.
• Cards cannot be used for international transactions.
• Poor customer service.

Mint app

MyMintApp is a self-service platform developed to enable customers to perform a range of digital and mobile banking transactions on their accounts. It provides customers with benefits such as convenience, speed, real-time online access, transaction security, and options to initiate basic service requests without having to physically visit the bank.

MyMintApp also offers various banking services such as banking services for SMEs, banking services for individuals, banking services for companies, Internet banking services (electronic banking), opening of current account, opening of account of savings, business services, loans, e-Business solutions, personalized money and card tracking solutions, etc. . Mint has over 10,000 downloads on Playstore.

Benefits

• Good customer service.
• Fluid account financing via Paystack or directly from your existing bank account.
• Different savings goals with competitive interest rates to help you save for a specific purpose.
• Money Manager to help you tag your spending based on the most common categories and see real views on how and where you spend monthly.
• No transaction fees on bill payments.

User complaints

• No bonus when you refer someone to the app.
• The process of checking selfies takes time.

Onebank

Onebank brings a whole new financial and non-financial experience to the digital space. This app comes with sophisticated features and flawless user experience. It is highly secure, convenient and easy to use. Onebank also offers payment, lending, investing, advisory, information, and lifestyle services that bring this intuitive banking experience to your mobile. Onebank is owned by Sterling Bank

Benefits

• Create a wallet account instantly with your mobile number.
• Biometric authentication.
• Instantly create your virtual card for online purchases and decide on the use and expiration of the card.
• Investments; enjoy up to 100% return on naira and dollar investments.
• Fast loans up to 5 million naira in 5 minutes.
• Receive money from Onebank user through QR code scan.
• Pay for your plane tickets, cable and Internet subscription directly on the app.
• Card-less withdrawals are available.

User complaints

• Risk of error when trying to connect.
• Bad user experience.
• Transaction history only shows debits and not credit transactions.
• Failed transactions take a long time to be rolled back.
• Difficulty when trying to change device.

Ruby

Rubies is a digital bank disrupting regular banking by providing top-notch 100% digital technology and services at its peak. With Rubies you can decide what your account number looks like. Rubies give you the financial freedom to do more than just banking, and the app has over 100,000 downloads from Playstore.

Benefits

• No maintenance costs.
• Free Debit Cards: Also includes a free shipping option.
• Independent Banker: Refer people and earn every time they trade on Rubies.
• Customizable account: decide what your account number looks like.
• Proximity Transfer: Easily transfer money to your friends on Rubies around you with just one click.
• Open an account: Get an account on the fly, from anywhere (app, website).
• Request Money: Request funds from friends on Rubies with just one button.

User complaints

• The verification process takes time.
• Unstable BVN check.
• App downtime takes more than 24 hours to resolve.
• Difficulties updating the account.

Why it matters

With the growing number of digital banks and fintech startups, the competition to acquire and retain new and old customers is getting tougher. More traditional banks will need to embrace digital banking to stay competitive.