But this characterisation of a bank is fast becoming redundant with the emergence of digital banks that operate exclusively on the internet. In fact, most traditional banks are now becoming increasingly digital with most of them having mobile banking apps and incorporating agency banking to reduce the number of their physical locations.

Still, a digital bank offers some advantages that a commercial bank can’t.  Online digital banks don’t have physical branches with staff and other operating expenses, they can in turn pass on these reduced expenses to their customers in higher interest and better efficient services.

Pros of digital banks

• They can offer a higher interest rate on savings because they have lower operating expenses compared to traditional banks.
• Peer-to-peer money transfer on most digital banks is free
• They offer wide range of services including bill payments, savings, money transfer etc.
• Some digital banks offer dollar debit cards with much higher transaction limit than the ones from traditional banks.

Cons of digital banks

• Because of the sophistication of the technology they use, most digital banks are only usable by educated people with expensive devices
• No in-branch physical customer service.

The best online digital banks in Nigeria

In no particular order, here are the most popular online digital banks in Nigeria with the best services;

Kuda bank

Kuda bank is fully regulated and licensed by the Central Bank of Nigeria to operate as a microfinance fintech. It has been operating since 2017 and so far has over 1.4 million customers.

Some of the unique services Kuda offers include 25 free monthly money transfers, 15% savings interest rate on deposits, overdraft loans for regular users, a 1,000 naira referral bonus and a Kuda bank Visa debit card that can be used at over 3000 ATMs and POS across Nigeria.

Barter by Flutterwave

Barter is a digital wallet built and fully supported by the tech giant, Flutterwave. The mobile application lets its users send and receive funds from anywhere in the world, pay bills, create Naira/dollar virtual cards which can be used to pay for services like Facebook Ads, Wise, Instagram Ads, Google Ads, Alibaba, Wave, Shopify etc.

Some of the services offered by Barter include; free peer-to-peer transfers, international money transfers abroad, bills payments and multicurrency virtual cards which gives holders a spending limit of up to $10,000 monthly to spend on Facebook Ads, Wise, Instagram Ads, Google Ads, Alibaba, Wave, Shopify etc.

Vbank

Vbank is a Lagos-based online digital bank with over 250,000 users.

Some of the services offered by Vbank include; zero transaction charges, cardless withdrawal, competitive interest rates on savings, Flexible fixed deposit, Payment of bills and USSD banking.

Vella Finance

Vella finance is a one-stop digital bank that offers a wide range of financial services. Vella is relatively new in the fintech market. It is a Nigerian company but fully incorporated in Delaware, United States of America. After gaining traction in Nigeria, plans are already in place for an operation in South Africa as the next stop and then countries like Ghana, Kenya, Botswana and Zimbabwe will also have access to their services in due time.

Some of the services offered by Vella include; peer-to-peer payments, interest-bearing digital savings accounts, crypto wallet, airtime for cash exchange and multicurrency physical/virtual cards that can be used to pay for Facebook Ads, Wise, Instagram Ads, Google Ads, Alibaba, Wave, Shopify etc.

Nomba (formerly Kudi)

Nomba, formerly Kudi, is a digital bank for merchants and business owners. It offers simplified tools on how businesses accept payments, make payments and manage their operations.

Some of the services offered by Nomba include; POS terminals, business tools, interest on savings and business loans.

How to choose the best digital bank

Online only digital banks try to stay competitive by offering some unique services. You can choose the one that best suits your lifestyle based on the services they offer. Kuda bank, for example, does not offer a dollar virtual card, so if you need to make online payments in dollars, your best option might be either Vella finance or Barter by Flutterwave.

Digital banks are a safe and secure way to spend and manage your money, Funds in them are equally insured by the NDIC similar to traditional banks.

The post Top 5 Best Online Digital Banks in Nigeria appeared first on AFRICA EXPLAINED.

Unlike conventional banks that have physical branch location all over the country, VBank operates entirely online through its smartphone apps.

If you hate those long lines at the bank, and the annoying attitudes of commercial Bank staff, Vbank might be the solution to all your financial needs.

Some of the services the platform offers to its over 250,000 and counting customers include zero transaction charges, cardless withdrawal, competitive interest rates on savings, Flexible fixed deposit, Payment of bills among others.

Digital banks are becoming increasingly popular across Africa because they incur fewer expenses compared to traditional brick and mortar banks. They don’t have physical branches with staff and other expenses, they can in turn pass on these reduced expenses to their customers in higher interest and better efficient services.

How does Vbank works?

As stated earlier Vbank is an entirely digital bank, it performs all the functions a conventional bank performs including sending and receiving money, bill payment etc.

To begin enjoying Vbank services, visit the official website to download the mobile app available on Google or Apple stores.

How to Open Your Account With Vbank

Once you’ve downloaded and installed the app on your smartphone, opening an account is easy, its just a matter of following the prompt

The application enables you to create an account either by using an existing BVN number or an existing bank account number. The basic idea is to tie your Vbank to your BVN according to the Central Bank’s regulations.

Here is the step by step guide to opening your Vbank account with your BVN

• ToOpen the Vbank app
• Click on create account
• Enter your phone number, referral code and birthdate, then click continue. For the referral code use P57YZ
• Choose ‘use your BVN and your BVN-linked phone number to sign up’
• Enter your BVN and check the accompanying box
• Enter OTP sent to mobile number via SMS
• Enter email address
• Set password
• Confirm password
• Click continue
• Take a photo or select photo for photo validation and that of your ID card
• Allow VFD bank to take pictures and record video
• Take picture
• Click ‘send a photo of face’
• Create 4 digit PIN

Here is the step by step guide to opening your Vbank account with An Existing Bank Account

• Open the Vbank app
• Enter your phone number, referral code and birthdate, then click continue. For the referral code use P57YZ
• Choose ‘use your existing Account from another Bank to sign up’
• Select bank, put your account number and checked the accompanying box
• Enter OTP sent to BVN number via SMS
• Enter email address
• Set password
• Confirm password
• Click continue
• Take a photo or select photo for photo validation and that of your ID card
• Allow Vbank take pictures and record video
• Take picture
• Click ‘send a photo of face’
• Create 4 digit PIN
• With either of the above option, you will get an account number with Vbank opened for you.

After creating your account you will see a welcome message confirming the successful creation of your account.

Fund your account by depositing an amount of money so that it can be active. Also, use your account to make your various day-by-day transactions as it attracts zero transaction fees.

V Bank Transaction Charges

The most interesting feature of Vbank is that it is actually completely free to use, unlike conventional banks that are laced hidden charges – from stamp duty to SMS alert charge to card maintenance fee and transfer fees, all of that are free on Vbank.

How to make cardless Withdrawals from Vbank

Imagine a feature that lets you walk to an ATM to make a cash withdrawal without any ATM card. The cardless withdrawal feature of Vbank is enabled on any of the following bank ATMs Stanbic IBTC Bank, Fidelity Bank, Access Bank, GTBank, UBA Bank, or Polaris Bank.

These ATMs have been preprogrammed to dispense cash if you follow the following steps:

• On the V Bank app click on payments
• Click cardless withdrawal
• Select source account, amount and set a 4-digit pin (for the withdrawal)
• Confirm it with your Vbank pin (the one you generated during the opening of the accounting process)
• A passcode will be generated for you (it is usually an 8-14 digit pin) and you have 24 hours to use the code and the pin generated (you will also receive it as SMS along with the pin for withdrawal)
• Visit any of the above mentioned bank’s ATMs or any bank ATM enabled for cardless withdrawal
• Press any key on the ATM to display screen prompts
• Select pay code cash out
• Enter 8-14 digit pin
• Enter 4-digit pin (generated for the withdrawal)
• Enter the amount and collect your cash

Benefits of Using Vbank

As stated repeatedly, Vbank functions like a conventional bank but without physical locations, but here are some advantages of using Vbank over other commercial banks:

• Zero transaction charges: while other Banks might have charges from transfer fees to maintenance fee to SMS alert fees, Vbank is free.
• Competitive interest rates on savings: Vbank offers up to 12% per annum on deposits.
• Flexible fixed deposit
• Cardless withdrawal: you don’t need to carry around ATM cards to withdraw your money from Vbank.
• Payment of bills: you can pay for utilities via the app including electricity bills, cable TV subscriptions, and recharge cards
• Budget planning
• Target savings
• Biometric security

Is it safe to use V bank?

It is very safe to use V bank and all the services offered on the platform. V is owned by VFD Microfinance bank which is one of the leading microfinance banks in Nigeria. VFD Microfinance Bank is registered in Nigeria (RC 1209088) and licensed by the Central Bank of Nigeria (CBN).
The funds you put in V bank is insured by the Nigeria Deposit Insurance Corporation (NDIC).
Vbank is owned by the parent company VTech Nigeria located at 214 Broad Street, Lagos Island, Lagos State, Nigeria.

Is Vbank owned by Don Jazzy?

No, Don Jazzy does not own Vbank, but he is the company’s ambassador that regularly promotes them on social media to his largely youths follower base. Vbank is owned by VTech Nigeria – the parent company that also owns VFD microfinance.

Does Vbank has POS agents?

Vbank does not yet offer POS services, the bank’s operations are still restricted to its mobile phone apps.

The post VBank Nigeria Review: what it is and how to withdraw money from ATM without card appeared first on AFRICA EXPLAINED.