10 Best Digital Banks in Nigeria: Usability, Features, Pros and Cons

Digital banking has come to be the new norm for money management in the banking industries. With the numerous options available, it is important that you know the top Nigerian online banks to trust with your hard-earned money. 

The capacity of digital banks to provide better interest rates on savings and fixed deposits than traditional banks is one of their most inviting qualities. Customers of these online banks stand to gain from the reduction of overhead costs related to the maintenance of physical locations.

Meltingpot has thoroughly assessed the reviews of the different digital banks online to create a list of the top 10 online banks in Nigeria. Our selection process was based on metrics like top-notch security, reasonable banking transaction fees, licencing, and outstanding customer service. 

We provide thorough analysis of the distinctive features of every digital bank on our list so you can make an informed decision that fits your financial goals. Read on as we examine the top ten digital banks that have been granted licences by the Central Bank of Nigeria (CBN). 

Best Overall Digital Bank: KUDA Bank 

Kuda Bank is a digital microfinance bank based in Lagos, Nigeria. It is popularly called “the bank of the free” due to its commitment to offering most of its services completely free of charge. Babs Ogundeyi and Musty Mustapha founded it as a fully licensed microfinance bank authorised by the Central Bank of Nigeria (CBN). 

The digital bank’s app and website provide easy access to various features, including a Visa debit card delivered at no cost, ATM withdrawals, cash deposits, bill payments, and up to 25 free transfers to other banks each month. Kuda offers fixed-term savings plans with up to 15% annual interest, automated save-as-you-spend, budgeting tools, and spending analysis features. Frequent users can even avail themselves of overdraft loans.

It also offers a free debit card with no maintenance fees, allowing customers to access their funds conveniently at over 3,000 ATMs across the country. Additionally, Kuda Bank’s commitment to data security and deposit insurance provided by the Nigerian Deposit Insurance Corporation (NDIC) ensures the safety of its customers’ money. The app is available for both Android and iOS users, making it accessible to a wide range of customers.

During our survey, users of Kuda Bank praised its simplicity and the absence of hidden fees familiar with traditional banks. They appreciate the ease of conducting transactions, innovative budgeting options, and the ability to earn interest on savings through the Fixed Savings plan. Kuda Bank has established itself as a top digital banking choice in Nigeria, offering customers a seamless and cost-effective banking experience.

How to Open a Kuda Account

• Download Kuda App either on Google Play Store or the App Store
• Click on Sign up
• In order for you to use the app, Kuda will need to know your name, phone number, BVN (Bank Verification Number), password, email address, and optional referral code.
• After you have submitted all of the previously mentioned data, your account will be created and you will be given a bank account.

Pros 

• Convenient all-in-one mobile app for financial services.
• Fast and secure money transfer with strong encryption.
• Promotes financial inclusion for the unbanked.
• Responsive and helpful customer support through live chat. 
• Allows for quick local transfers
• Cashback on Transfers 

Cons:

• Free transactions are limited to only 25
• Users complained of app issues after the latest update

Best Online Bank for Local Transactions: Opay Bank 

Opay is a renowned financial technology company that has gained popularity for its user-friendly and convenient services. It was founded in 2018 by Yahui Zhou. The company has built a strong reputation for its commitment to security, transparency, and user satisfaction. Opay protects users’ financial data and transactions by employing cutting-edge encryption and security measures.

Opay offers various services and products designed to simplify users’ lives. These include money transfers, bill payments, airtime and data top-up, merchant payments, and an online shopping marketplace. By integrating various financial services into a single app, Opay has become a go-to platform for millions, making financial transactions and payments more accessible and convenient for all.

During our interviews, Opay users praised the mobile app for its simplicity and ease of use, allowing them to send and receive money, pay bills, and make online purchases with just a few taps on their smartphones. The company’s customer support team has also received positive feedback for their prompt and helpful responses to users’ queries.

How to Open a Opay Account

• Download the Opay App either on Google Play Store or the App Store
• Open the app after downloading to start the registration process. 
• You will probably be asked for some personal information during the registration process, such as your complete name, phone number, and email address. 
• Opay will then verify your identity. This can be done by using an SMS code to validate your phone number. 
• Create a strong password to access your Opay account and your account number will be given to you which is simply your phone number without the first number.

Pros:

• Convenient all-in-one mobile app for financial services.
• Fast and secure money transfer with strong encryption.
• Promotes financial inclusion for the unbanked.
• Responsive and helpful customer support through livechat. 
• Allows for quick local transfers
• Cashback on Transfers 

Cons:

• Limited availability in some regions.
• Some transactions may have relatively high fees.
• Users complained of account restrictions and freezing of accounts without notification.

Online bank for SMEs: Sparkles 

Sparkles Nigeria is a digital bank that aims to transform the way people manage their finances. It offers a range of features catering to both personal and business financial needs. Account opening is quick and hassle-free, and customers can save money using the Sparkle Stash feature. 

The Breakdown & Analytics feature helps users analyze expenses and make informed decisions about their spending habits. Additionally, the Transfers & Bills Payments feature allows for easy money transfers, bill payments, and innovative payments with SparklePay.

One of Sparkles’ standout features is the provision of physical Sparkle Debit Cards for secure and seamless online and in-person purchases. In the pipeline is Sparkle Loans, which promises quick cash without the need for paperwork, collateral, or a guarantor. SparklesPay feature allows users to send money via AirDrop, providing a convenient and hassle-free way to transfer funds.

How to Open a Sparkles Account

• Download the app on Play Store or App Store
• Open the app and start the registration by providing the necessary information
• Verify your email address. 
• Enter your phone number to finish the OTP verification process. 
• Add your BVN, and upload a picture or your face , and the BVN will be verified and examined to see whether it corresponds with your information. 
• Wait for permission and your account number before using the Sparkle App to your full potential.

Pros:

• Secure and flexible transactions without sharing bank account numbers.
• User-friendly app with minimal lag.
• Responsive customer care.
• Automated tax calculations for business owners.

Cons

• Charges for receiving money.
• App notification 

Best Online bank for International Transactions: Mintyn 

Mintyn, formerly known as Mint, is a leading digital microfinance bank founded in 2020. As the digital arm of Finex Microfinance Bank, Mintyn offers a wide range of financial services to Nigerians, with a focus on empowering customers with cutting-edge digital solutions. The bank provides private and corporate bank accounts, interest-accruing savings accounts, instant loans, and mutual funds.

One of the standout features of Mintyn is its commitment to seamless international transactions is the virtual USD Visa card, making it an ideal choice for global commerce. The virtual dollar card lets users pay for international services like Amazon, Apple Music, and Netflix.

Mintyn also offers Diaspora Banking, a financial service that caters to the needs of individuals living abroad. Diaspora Banking provides access to financial services like remittance and foreign exchange, allowing individuals living outside their home country to manage their money conveniently and cost-effectively. With specialised services, multilingual customer support, and financial education programs, Mintyn ensures that diaspora communities are well-served.

Mintyn’s user-friendly app empowers customers with digital banking features, including spending limits, card locking for added security, virtual card creation and funding, and recurring payment scheduling. This level of financial control is easily accessible on the Mintyn app.

Financial inclusion is a priority for Mintyn, and they make banking accessible to a wider audience by allowing customers to open a current account with just N2000.

How to Open a Mintyn Account

• Download the Mintyn app on Play Store or App Store
• Provide your phone number and Email address. 
• Use an SMS-sent one-time password (OTP) to confirm your phone number.
• Provide  your BVN. Snap a photo of yourself. 
• Create a password or PIN to access your account.

Pros: 

• Seamless international transactions with virtual dollar cards.
• User-friendly app for easy financial control.
• Financial inclusion with low account opening requirements.
• Competitive exchange rates for cost-effective transfers.

Cons: 

• The charges are a bit high 
• Limited currency options for international transactions.

Best Online Bank Without BVNs: Palmpay

PalmPay is a highly regarded digital banking app catering to users in Nigeria and Ghana. It offers a wide range of financial services, including airtime and data recharge, bill payments, and money transfers. It was founded by the Chinese company Transsion Holdings and the Taiwanese company NetEase, and it comes pre-installed on popular Chinese Android phones like Tecno, Infinix, and Intel.

With PalmPay, users can open an account for free using just their phone number and without inputting their BVN, making the process hassle-free. The app offers unlimited free money transfers to any bank or financial institution during the first month, with zero charges for all money transfers every Tuesday. PalmPay also simplifies bill payments, providing cashback and data bonuses for airtime and recharge. It also supports over 500 billers and service providers, making managing various financial transactions convenient from home.

PalmPay users appreciate its user-friendly interface and the added security measures, including facial identity, fingerprint verification, and OTP/SMS verification, specifically during our survey. The app’s round-the-clock customer support adds to the positive user experience by providing prompt assistance. PalmPay has earned a reputation as a convenient and reliable digital wallet, delivering a seamless banking experience to its users in Nigeria and Ghana.

How to Open a Palmpay Account

• Download the app on the Apple App Store and Google Play Store. 
• Install the app, then select “Sign Up.”
• Once you have input your phone number, select “Send Verification Code.” Enter the code for verification that you got through SMS. 
• Enter your personal data  which are your birthdate, password, first and last names, and email address. 
• An invitation code is an optional addition. 
• Create a 4-digit PIN, you will need this PIN to carry out any transactions and log in. 

Pros: 

• User-friendly interface
• Good transaction limits
• Affordable electricity payments
• Easy airtime and data purchase

Cons: 

• Customers complain of transaction issues
• Poor customer service 

Best Online bank for Saving: Moniepoint 

MoniePoint is a CBN-licensed microfinance digital bank formerly known as TeamApt. It was founded by Tosin Eniolorunda in 2015 with the mission to deliver financial happiness to all through a range of digital financial services. 

The bank’s dedication to innovation and customer satisfaction has earned it a prominent reputation in the financial industry. In 2022, Moniepoint MFB received special recognition from the CBN for being the most inclusive payment platform in the country

 The user-friendly mobile app allows customers to easily manage their accounts, conduct transactions, and access various banking services. One of the standout features of MoniePoint is its zero charges on most transactions, including transfers and ATM withdrawals, which has garnered appreciation from users. 

Moniepoint’s platform offers attractive savings options, investment opportunities, quick loans, and credit facilities for eligible customers. Positive reviews highlight the app’s simplicity, efficient loan disbursement process, and the bank’s commitment to customer satisfaction. As the Best Online Bank for Saving, MoniePoint continues to redefine digital banking, empowering users to achieve their financial goals and foster financial happiness.

How to Open a Moniepoint Account

• Download the app on the Apple App Store and Google Play Store.
• After selecting “Sign Up,” input your phone number and email address. 
• Check your phone number with the SMS-sent OTP and input it 
• Enter your birthdate and BVN (Bank Verification Number). 
• Make a password, username and a 4-digit PIN to provide safe entry. 
• Enable biometrics if you’d want extra security. 
• Input your residential address and proceed with the facial verification process. It has created your account! You can now fund it and start carrying out transactions. 

Pros:

• Digital convenience with a user-friendly mobile app.
• Zero charges on most transactions, reducing banking fees.
• Promotes financial inclusion, serving the unbanked and underbanked.
• Provides quick loans and credit facilities for emergencies.

Cons:

• Relatively few service offerings compared to other digital banks.
• Security concerns regarding data protection.

Best Online Bank for Investments: Fundall 

Fundall stands out as a top-notch online bank, especially for investment opportunities. It makes growing your money super easy with a variety of investment options like fixed savings plans, low-risk money market investments, and mutual funds. You can set savings on autopilot, making it effortless to achieve your financial goals.

One of Fundall’s best features is the Portfolio Line of Credit, which lets you borrow money without disrupting your savings plan. It’s like having a safety net when you need cash urgently.

Another great feature of the Fundall app is the AI financial advisor that provides personalised wealth management advice to users. Additionally, Fundall provides opportunities for users to invest their money and take out life insurance, ensuring a comprehensive suite of financial services tailored to meet investment needs.

The recognition of Fundall as the “B2B PAYMENTS APP OF THE YEAR” by Business Days further solidifies its position as a trustworthy and innovative financial partner. Overall, Fundall offers a comprehensive and reliable solution for individuals and businesses seeking to invest, save, and manage their money efficiently and intelligently.

How to Open a Fundall Account

• Download the Fundall app on the Apple App Store and Google Play Store.
• Create an account
• Sign up with your name, email and phone
• Start transactions

Pros:

• Diverse investment options, including fixed savings plans, money market investments, and mutual funds.
• Automated savings plans for effortless financial management.
• Portfolio Line of Credit for borrowing against locked savings without disruption.
• Tailored savings plans for personalized financial goals.
• Responsive customer support.

Cons:

• Account blocking without clear reasons.
• Deposit delays for reflecting funds.
• Unexpected charges for virtual cards.

Digital Bank With The Least Charges: V Bank 

VBank, also known as V by VFD, is a digital bank based in Lagos, Nigeria, owned by VFD Microfinance Bank, a member of the VFD Group. The bank offers a comprehensive range of products and services, including fixed savings, instant loans, cardless withdrawals, and more.

VBank’s services include the free V Account, providing a Verve debit card, access to loans, interest-accruing savings accounts, advanced analytics, and budgeting features through their app or USSD code. The bank’s zero charges on transactions, account maintenance, and competitive interest rates have earned praise from users.

The bank also offers unique perks like joint accounts, tap-to-pay, WhatsApp banking, and the community-based referral system called Village. With Village, users can earn rewards by sharing a referral code with their network, increasing earnings as more accounts use it.

Additionally, VBank provides some of the best interest rates in Nigeria, offering up to 14% interest on fixed deposits and 8% compounded interest per annum with V Target Savings.

How to Open a Vbank Account

• Download the Vbank app on the Apple App Store and Google Play Store
• Select “Open an Account and enter personal information
• Create a password
• Verify identity with your BVN and NIN
• Take a selfie
• Complete additional verification if required
• Fund your account

Pros:

• Unique perks like joint accounts, tap to pay, WhatsApp banking, and Veelage referral system.
• Competitive interest rates, up to 14% on fixed deposits and 8% on V Target Savings.
• Easy and quick account opening using your phone number and BVN.

Cons:

• The mobile app needs improvement 
• Generating bank statements is conditional 

Best Online Bank For Loans : Fairmoney 

FairMoney Microfinance Bank is a fully digital platform that started in 2018 to offer loans to Nigerians. They believe in making life simpler by providing quick and affordable short-term loans.

Anyone with a Bank Verification Number and a positive credit history can apply for loans, whether you are a salary earner, entrepreneur, petty trader, or individual. The best part is you don’t need any collateral for approval. Within just 5 minutes, you can get your loan disbursed!

FairMoney’s digital nature makes banking convenient. You can access all loan information easily, and there’s no need to visit a physical branch. Their user-friendly mobile app allows you to check your account balance, view transactions, and transfer money to other FairMoney users. Plus, they provide excellent customer service through the chat feature.

Customers love FairMoney’s quick loan process, no collateral requirement, and easy app access. While some wish for higher initial loan amounts, many appreciate the convenience and cost-free money transfers. With FairMoney, you have a reliable and efficient bank for loans and other digital financial services in Nigeria.

How to Open a FairMoney Account

• Download the FairMoney app from the Google Play Store
• Sign up with the phone number linked to your BVN
• Create a password 
• Start transactions

Pros:

• Quick and easy loan approvals within 5 minutes.
• Fully digital platform for convenient banking.
• No collateral is required for loan applications.
• User-friendly mobile app for seamless account management and money transfers.
• Excellent customer service through real-time chat support.

Cons:

• Limited physical branches, with only one in Lagos.
• You need to download the FairMoney mobile app for loan applications.

Best Online Bank For Customer Service: Carbon  

Carbon, formerly known as Paylater, is a leading African digital bank that has gained reputation for providing outstanding customer service in Nigeria, Kenya, and Ghana. It stands out as a customer-centric digital bank, consistently providing timely support and accessible financial tools. With an impressive 4.4-star review on Playstore and a 4.5-star review on the Appstore, it’s clear that users appreciate the responsiveness of Carbon’s support team.

Carbon’s proactive approach to customer support shows its constant commitment to providing great customer care. Carbon’s active user community encourages frequent updates regarding goods and services, which improves consumer interaction. 

The Carbon app provides all-inclusive financial solutions, such as high-yield investments, safe payment methods, and a savings account with very attractive interest rates. Their clear credit reports also enable consumers to make wise financial decisions. 

The bank has been able to address some of the complaints raised by users regarding low starting loan amounts and increases in interest rates for loans.

How to Open a Carbon Account

• Download the app from your Google Play store or App store.
• Provide your personal details  like BVN and NIN You can now start banking.
• Carry out all your banking transactions within the app.

Pros:

• Prompt Customer Support.
• User-Friendly Budgeting Tools.
• Secure Payment Solutions.
• High-Yield Investments.
• Transparent Credit Reports.

Cons:

• Interest Rates for Loans.
• Lower Initial Loan Amounts.

Top 10 Online Banks in Nigeria: Key Features, Fees and charges, Interest rates, and Consumer Ratings

How We Selected The Best Online Banks In Nigeria

We carefully weighed several key factors while selecting the best online banks in Nigeria. Through a meticulous evaluation process, we ensured that the selected banks adhered to the highest standards of security, service, and customer experience. Below, we outline the key factors that guided our selection process:

• Security and Safety Measures: We carefully evaluated the online banks in Nigeria based on their security and safety measures. This included assessing their adherence to industry standards and regulations to protect customer information and transactions from potential threats. Online banks with robust encryption protocols and two-factor authentication were favoured for providing a secure banking experience.

• Range of Services and Products Offered: The best online banks in Nigeria offer comprehensive financial services and products to cater to diverse customer needs. We considered the availability of basic bank accounts, savings accounts, loans, investment opportunities, insurance services, and other financial offerings. Banks that provided various services with flexibility and convenience were given higher ratings.

• Mobile App Functionality and User Experience: The functionality and user experience of the mobile app played a crucial role in our selection process. We assessed the app’s ease of navigation, speed, and responsiveness. Banks with user-friendly and intuitive apps offering features like account management, fund transfers, bill payments, and budgeting tools ranked higher in this category.

• Customer Support and Responsiveness: The customer support and responsiveness level was a key consideration. Online banks that offered multiple communication channels, such as live chat, email, and phone support, and demonstrated a prompt and helpful response to customer queries were given preference.

• Fees and Charges: We thoroughly reviewed the fees and charges associated with various services offered by online banks. Banks with transparent fee structures, reasonable charges, and minimal hidden costs were considered favourable customer choices.

• Interest Rates and Savings Options: Interest rates on savings accounts and investment options were closely examined. Online banks offering competitive interest rates and attractive savings plans to help customers grow their wealth were ranked higher in this category.

• Accessibility and Ease of Use: The accessibility and ease of use of online banking services were essential factors. Banks with intuitive online platforms that were easily accessible through various devices, including smartphones and tablets, received higher scores.