Banking
Top 6 Digital Banks Disrupting Nigeria’s Financial Landscape
By Adedapo Adesanya
Before now, the only way to carry out a financial transaction was to visit the banking hall, stay in the queue and pray that the cashier is in a good mood.
But technology has changed the game. Someone does not have to leave his/her space to execute a financial transaction and in fact, some digital banks have sprung up in Nigeria in the last five years, offering not to only complement the traditional, brick and mortar banking structure but to disrupt its entire structure with its offerings.
Business Post takes a look at some digital banks and their performances towards challenging the status quo in an evolving financial landscape. The banks have been shortlisted to six based on metrics such as popularity, offerings, and growth in the last two years.
Kuda Bank
Regarded as the bank of the free, Kuda is modelled based on free offerings that regular traditional banks charge customers for. They offer free ATM cards and free transfers. For instance, Kuda does not charge card maintenance fees. It also offers customers up to 25 free transfers to other banks every month.
Kuda, according to the latest data, has processed at least $2.2 billion in transactions and has raised a total of $36.6 million in two years as it continues to position itself as Africa’s digital bank. Its customer base has also grown to over 600,000 customers.
Kuda came into the market in 2019 with a $1.6 million pre-seeding round and in November 2020, it raised a $10 million led by Target Global, Entrée Capital, SBI Investment among others and in March, it raised $25 million in a Series A round led by Valar Ventures and included Target Global.
The company has a microfinance banking license from the Central Bank of Nigeria (CBN) and at the moment, its flagship product is a digital-only savings account but with a primary plan of expansion, Kuda is set to drive the digital banking sector in Nigeria.
Vbank
V by VFD Microfinance Bank (Vbank) is a fully digital bank that offers a wide range of financial products and services to professionals and entrepreneurs across all sectors.
The digital bank offers zero charges on transactions. Free account maintenance, monthly interest on savings, swift and secure transfers, withdrawals, and bill payments.
V is the digital banking app for VFD Microfinance Bank, a six-year-old financial institution.
In April 2021, the bank noted that it has more than 250,000 individuals and businesses on its mobile banking platform across Nigeria, and processed transactions worth billions. It, however, didn’t stipulate any figure to back up the assertion.
According to the Managing Director of the bank, Mr Azubike Emodi, “Launched March 25, 2021, the digital bank has onboarded more than 250,000 individuals and businesses on its mobile banking platform across Nigeria and processed transactions worth billions.
“The all-digital platform is most accessed in cities including Lagos, Anambra, Port-Harcourt, Abuja and Asaba.”
With a new app, Vbank’s Version 3.0 has features including card-less withdrawals, multiple funds transfers, recurring transactions, proximity payments, advance budgeting and intelligent airtime top-up.
Vbank offers between 8 per cent and 14 per cent interest on its savings.
Rubies
Rubies is a digital bank that disrupts regular banking by providing 10 per cent digital top-notch services and technology at its peak. Its offerings include free debit cards which come with an option of free delivery; independent banking which enables users to refer people and earn every time they transact on Rubies.
It also gives users a customizable account, meaning they can decide what their account number will look like and they can transfer money easily to friends on Rubies around with a single tap.
Rubies claims that it offers a 21st-century banking experience and asides from the easy and convenient account opening process, the platform is packed with features like virtual dollar card, Rubies Rule Book (to manage recurring payments), savings and investments, money requests, and more.
It offers the lowest interest rate among its competitors with a 2 to 5 per cent interest on its savings and has a low N10 interbank transfer rate, one of the lowest in Nigeria.
ALAT
ALAT is a self-acclaimed Nigeria’s first fully digital bank that is run by Wema Bank. It was the first among the first financial institutions to introduce mobile banking in Nigeria in 2011 and took it several notches higher in 2017 with the launch of ALAT.
With the service, users can take an instant loan, save with friends, create and make payments with virtual cards, and so on.
Interest rates on savings with ALAT can go as high as 10 per cent annually, which is higher than normal bank rates.
It is the only digital bank with an insurance offering and customers can get up to N200,000 in loans.
ALAT has contributed immensely to Wema Bank’s numbers with the company latest financial statement showing a year-on-year double-digit growth of 39.4 per cent in customer deposit of N804.9 billion in 2020 compared with the N577.3 billion recorded the previous year.
According to The Chief Financial Officer of the bank, Mr Tunde Mabawonku, “We have a clear strategy of becoming the Most Dominant Digital Bank in Nigeria by 2023. We have positioned ALAT as the go-to platform by both increasing customer acquisition and working with eco-system partners on payments and settlements.”
Eyowo
Eyowo is a very innovative digital bank with lots of amazing features. Something that stands out with Eyowo is its account opening process. The process is made very easy and stress-free and with just a phone number, users can create an account and send money. Another is the zero interest rate loans.
Eyowo, like some other digital banks in Nigeria, also lets you create virtual cards. Primarily established to bridge the financial inclusion gap, Eyowo, the service has proven to help Micro Small Medium Enterprises (MSMEs)
It offers interests in savings ranging from 5 per cent to 13 per cent with an interbank transfer between N10.50 to N52.50.
Eyowo as part of its efforts to deepen financial inclusion has an Unstructured Supplementary Service Data (USSD) code: *4255#.
Sparkle
Sparkle is a digital bank. It is a digital ecosystem providing financial, lifestyle, and business support services to Nigerians around the world. Licensed by the CBN, Sparkle is all about helping people achieve what they want, whether it’s entertainment, education, saving, or investing in the future.
Launched by former Chief Executive Officer (CEO) of the defunct Diamond Bank, Mr Uzoma Dozie, the startup claims to have more than 20,000 customers and processed $16 million in transactions.
Sparkle has its sights set on SMEs in Nigeria, by offering a suite of digital payments and business management services. It also plans to move into the digital distribution of general insurance products.
Initially, Sparkle was launched for users to be able to split payment, make utilities and bill payments and also save their money, but with its banking license, it also plans to start offering consumer and small business loans in 2021.
Recently, the bank announced Sparkle for Business to help entrepreneurs access the much-needed products and services to grow their enterprises digitally.
It will have four main components, according to the company; inventory and invoice management; payment gateway service; tax advisory; payroll and employee management.
By Modupe Gbadeyanka
First Bank of Nigeria has been directed to pay one of its staff members, Mr Joseph Simeon Akor, a total of N5.2 million for wrongfully terminating his employment.
This order was given by Justice Zaynab Mohammed Bashir of the Port Harcourt Judicial Division of the National Industrial Court, Business Post learned.
The judge held that the claimant successfully established that the lender breached the terms of his employment by failing to comply with the disciplinary procedure contained in its Staff Employee Handbook after commencing investigations into allegations of misconduct and by paying him less than the prescribed half of his basic salary during suspension.
The court found that although the bank retained the contractual right to terminate the employment, the action was wrongful for failing to comply with its own contractual obligations and disciplinary framework.
Justice Bashir further held that, having elected to terminate Mr Akor’s employment on the ground that his services were no longer required rather than dismissing him for misconduct, First Bank of Nigeria could not rely on alleged misconduct to deny him the financial entitlements accruing during his suspension.
In delivering the judgment, the judge ordered the financial institution to pay N3.2 million as the balance of the claimant’s salaries and allowances withheld during his suspension, and N2 million as general damages for the breach of the terms of his employment.
From the facts, Mr Akor informed the court that he was employed by First Bank of Nigeria in May 2005 and rose to the position of Deputy Manager before his employment was terminated in December 2018 following allegations of misconduct.
He argued that the allegation was never substantiated. Yet, he was suspended, paid only about N31,000 monthly instead of half of the basic salary prescribed by the Bank’s Staff Employee Handbook, and eventually had his employment terminated. In contrast, the investigation into the allegation was still ongoing.
He further maintained that First Bank of Nigeria breached the provisions of its Staff Employee Handbook by failing to conclude investigations before terminating his employment and by withholding part of his salaries, allowances and other benefits during his suspension despite the allegation not being established.
In defence, First Bank contended that Mr Akor was accorded a fair hearing through disciplinary proceedings, that his employment was lawfully terminated because his services were no longer required, and that he was not entitled to the unpaid balance of his suspended salary, having left the bank’s employment while still on suspension.
The company further claimed that the reason stated in the termination letter that the services of Mr Akor were no longer required was sufficient in law and that the court could not import any other reason into the letter.
In opposition, Mr Akor’s counsel, O. G. Tony Ogidi, submitted that First Bank failed to comply with its disciplinary procedure under the Staff Employee Handbook, terminated the employment of his client before the conclusion of investigations, and failed to justify the termination in accordance with the provisions of the Handbook.
The counsel further argued that the termination letter merely stated that the services of Mr Akor were no longer required without assigning any reason and maintained that the bank acted contrary to the provisions of its Staff Employee Handbook by paying Mr Akor substantially less than half of his basic salary during his suspension.
By Aduragbemi Omiyale
Flutterwave has secured a strategic investment from Circle Ventures to expand its USDC payments and settlement infrastructure across Africa.
This funding support aligns with Flutterwave’s mission to modernise cross-border money movement on the continent, allowing merchants to collect locally and settle in USDC, reducing delays and costs while enabling near-instant settlement beyond traditional banking hours.
“This support from Circle Ventures is about backing the rails that will power the next era of global money movement from Africa.
“Stablecoins like USDC are no longer an experiment; they are becoming core financial infrastructure. By embedding USDC settlement into our current payments infrastructure, we are building a system that lets businesses move money at the speed of the internet.
“This fundamentally changes how payments from Africa connect to the world, and it positions Flutterwave as the default stablecoin gateway for the continent,” the chief executive of Flutterwave, Mr Olugbenga ‘GB’ Agboola, stated.
Business Post gathered that Flutterwave attracted this investment after its participation in the launch of Circle Payments Network in 2025.
At the core of this investment is Flutterwave’s strategy to position stablecoins as critical financial infrastructure to provide reliable and fast settlements in Africa.
Global stablecoin circulation currently exceeds $300 billion, with Africa emerging as one of the fastest-growing regions for its adoption.
By expanding its platform into a multi-rail payment system that includes fiat, cards, bank transfers and stablecoins, Flutterwave is enabling businesses to choose the fastest, cheapest and most reliable settlement option for their needs.
By Aduragbemi Omiyale
Foremost Nigerian real estate lending institution, Abbey Mortgage Bank Plc, has rebranded to Abbey Bank Plc.
This is to reflect its new status as a full-fledged financial institution as against its previous status as a bank for only the real estate sector.
The company, which trades its securities on the Nigerian Exchange (NGX) Limited, informed the investing community of its transformation.
This was in line with the approval granted by shareholders to the board of the organisation to change the name at an Extraordinary General Meeting (EGM) in January 2025.
The NGX Regulation Limited last week confirmed the name change via a circular signed by Bonaventure Onwuji on behalf of its Head of Issuer Regulation Department.
“Trading license holders and the investing public are hereby notified that the change of name of Abbey Mortgage Bank Plc to Abbey Bank Plc has been implemented by Nigerian Exchange Limited.
“This is in line with the approval obtained from the shareholders of the bank at its Extraordinary General Meeting held on January 24, 2025, and the receipt of a new certificate of incorporation from the Corporate Affairs Commission (CAC).
“Please note that the company’s trading symbol has also been changed from ABBEYBDS to ABBEYBANK,” the notice read.
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