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 Aduragbemi Omiyale
Stanbic IBTC stole the spotlight at the recently concluded Euromoney Awards for Excellence 2026 in London, the United Kingdom.
At the ceremony, which attracted critical stakeholders in the financial services sector across the globe, the member of Standard Bank Group was named winner in four categories.
The company went home with the Best Bank for Sustainable Finance award, the Best Bank for Consumer Lending award, the Best Bank for Mortgages/Home Loans award and the Best Bank for Securities Services award.
“We are pleased to have been named winner in these categories at the Euromoney Awards for Excellence 2026. These are important areas of our business and remain central to how we support individuals, businesses and institutional clients across Nigeria.
“Our focus remains on delivering reliable, relevant and responsible financial solutions, while serving our clients with the discipline, professionalism and care they expect from Stanbic IBTC,” the chief executive of Stanbic IBTC Holdings Plc, Mr Chuma Nwokocha, said.
Also commenting, the chief executive of Stanbic IBTC Bank, Mr Wole Adeniyi, said, “Across our business, we continue to focus on solutions that respond to the needs of our clients, whether they are individuals, families, businesses or institutions. We will continue to strengthen our service delivery, deepen client relationships and support responsible growth across the markets we serve.”
In the 2025 fiscal year, Stanbic IBTC showed continued scale across its financial services business, reporting total assets of N8.62 trillion, customer deposits of N4.37 trillion and net customer loans and advances of N2.38 trillion, as total income stood at N895.7 billion, while return on equity was reported at 42.4 per cent.
Stanbic IBTC’s sustainability disclosures also showed continued activity across its ESG and positive impact priorities. The organisation reported N277.3 billion in sustainable loans disbursed, representing a 60 per cent increase from 2024; and N76.4 billion in loans disbursed to 2,862 SME clients for the year ended 2025.
Its sustainability approach is anchored on three high-impact goals: driving sustainable industrialisation; facilitating sustainable trade; and fostering equitable access to finance. It also identifies four positive impact areas: job creation and enterprise growth; infrastructure development and energy transition; climate change mitigation and adaptation; and financial inclusion.
Across consumer lending and home loans, Stanbic IBTC continues to provide financing solutions to individuals and households, supported by the Group’s broader banking platform and customer-focused approach.
In securities services, Stanbic IBTC continues to provide custody, settlement, corporate actions, securities lending, reporting, reconciliation, foreign exchange processing and related investor services to institutional clients participating in Nigeria’s capital markets.
Stanbic IBTC continues to support individuals, businesses and institutional clients across sustainable finance, consumer lending, mortgages/home loans and securities services; while remaining focused on delivering financial solutions that are relevant to clients and responsive to the operating environment.
By Adedapo Adesanya
Paystack has launched Small Business Launchpad, a four-week business growth programme designed to help small and medium-sized enterprises (SMEs) using its platform strengthen their operations and scale sustainably.
The payments technology company said the first cohort will begin on August 27, 2026, admitting up to 50 selected businesses. Participants will receive practical business training, expert mentoring and direct support from Paystack, with sessions focusing on customer acquisition, cash flow management, business operations and growth.
The initiative is the latest in a series of programmes by Paystack aimed at supporting merchants beyond payment processing. It follows the launch of the Paystack Small Business Bundle in June, which gives eligible merchants access to discounted products and services from partner organisations.
According to the company, the Launchpad programme will build on that support by providing practical learning, access to experienced business operators, networking opportunities and hands-on guidance for entrepreneurs.
To qualify, applicants must be active Paystack merchants operating a small or medium-sized business in Nigeria. Successful applicants will be required to commit to the full four-week programme and pay a N150,000 participation fee.
Participants will have access to business clinics led by experienced entrepreneurs and industry experts, one-on-one office hours to discuss specific business challenges, priority Paystack support throughout the programme, and product benefits including early access to selected Paystack offerings.
Businesses that complete the programme will also receive three months of free payment processing, capped at N25 million in processed transactions, while becoming part of an alumni community that will continue after the programme ends.
Speaking on the initiative, Ms Jumoke Gbeleyi, Strategy and Operations Leader at Paystack, said the programme was designed to address the practical challenges entrepreneurs face daily.
“Small business owners are making decisions every day about customers, cash flow, operations and growth, often with limited time and support. Launchpad gives us a practical way to work more closely with the merchants building on Paystack, connect them with experienced operators, and help them leave with stronger systems, relevant networks and actions they can apply immediately. We want the programme to be useful from day one, not theoretical,” she said.
Paystack said the inaugural cohort will cover topics including customer acquisition, financial management, business systems and lessons from experienced operators.
The sessions will be facilitated by founders, senior business executives, finance specialists and industry leaders, including Mr Babajide Duroshola, Managing Director, Nigeria at M-KOPA; Mr Luther Lawoyin, co-founder of Pricepally; Ms Nana Abu, Senior Manager at KPMG; Mr Kenny Isichei of Bumpa; and Ms Jumoke Dada, founder of Taéillo.
The company said the programme will initially focus on Nigeria, with plans to introduce additional cohorts in the future.
By Modupe Gbadeyanka
United Bank for Africa (UBA) Plc has been recognised as the Best Bank for Retail and Sustainability Leadership (ESG) by Euromoney.
The Nigerian lender got this accolade at the prestigious 2026 Euromoney Awards for Excellence on Thursday, July 17, 2026, at The Peninsula London in the United Kingdom.
The recognition of UBA for its retail banking excellence and sustainability leadership highlights its outstanding financial performance, innovation, customer impact and sustainable business practices, underscoring the company’s leadership in driving sustainable finance while expanding access to innovative banking solutions for millions of customers across Africa.
Euromoney declared that UBA distinguished itself through significant strides in environmental, social and governance (ESG) performance, including the launch of a Green Financing Facility to support households and businesses transitioning to renewable energy, a N5 billion financing programme in partnership with the Bank of Industry to empower women-owned businesses, and its long-term commitment to achieving net-zero emissions by 2050.
The organisers of the awards also highlighted UBA’s efforts to embed sustainability within its operations through the deployment of solar-powered energy solutions across 50 branches and comprehensive ESG capacity-building initiatives that have trained more than 16,000 employees across the Group.
In the retail banking category, Euromoney recognised UBA’s continued expansion as one of Africa’s largest retail banking franchises. The bank grew its customer base to over 37 million by the end of 2025, while retail revenue more than quadrupled to N429.5 billion.
The awards also acknowledged UBA’s continued digital innovation, particularly the enhancement of its award-winning AI-powered chatbot, LEO, which became Africa’s first artificial intelligence banking platform to facilitate cross-border money transfers in local currencies through the Pan-African Payment and Settlement System (PAPSS).
“To be recognised as Nigeria’s Best Bank for both ESG and Retail Banking in the same year sends a powerful message that sustainable banking and commercial success are mutually reinforcing.
“At UBA, we are committed to financing Africa’s future, supporting businesses and communities, promoting financial inclusion, and delivering innovative banking solutions that improve lives. These awards belong to our customers for their confidence in us and to every member of the UBA family whose dedication continues to make our vision a reality,” the chief executive of UBA, Mr Oliver Alawuba, stated.
On her part, the Head of Marketing, Brand and Corporate Communications at UBA, Ms Alero Ladipo, said, “These awards are a powerful affirmation of our Customer First philosophy. Every innovation we introduce, every solution we develop and every investment we make is driven by our desire to create exceptional value for our customers.
“Whether it is supporting entrepreneurs with access to finance, enabling seamless digital payments, advancing clean energy financing or expanding financial inclusion across Africa, UBA remains focused on delivering meaningful impact. We are honoured that one of the world’s most respected financial publications has recognised these efforts.”
