Digital banking is becoming increasingly popular in Nigeria as operators harness the best technological tools to address the transaction challenges faced by Nigerians. In addition, digital payment platforms have been authorized by the Central Bank of Nigeria to provide microfinance banking and Point of Sale (PoS) services in the country, as a means of deepening financial inclusion. Fintech platforms are now evolving into banks, despite their confinement to digital spaces.
These digital banks serve the same purpose as traditional banks with physical locations, but they offer their services via mobile apps and other touchpoints. Although they operate under various licensing categories and offer a range of services, they are becoming ubiquitous and have recently resolved many financial problems for Nigerians. As of February 2023, around 894 companies have been licensed as microfinance banks, according to the CBN’s database. However, only a few fully digital firms can be classified as digital banks, while some have received licenses from the CBN to operate PoS services.
As digital banking continues to grow in Nigeria, it is becoming increasingly important to ensure that all individuals have access to these services. Deepening financial inclusion is essential to enable more Nigerians to participate in the financial system and contribute to economic growth. With the support of the CBN and the best technological tools, digital banking operators are poised to revolutionize the banking industry in Nigeria, offering more efficient and accessible financial services to a larger number of people.
However, only some fully digital companies can be described as digital banks. Except for a few digital banks, some have also obtained licenses from CBN to operate PoS services.
The names of the banks include: