Top 5 Digital Banks in Nigeria, Alternatives to Traditional Banks

Traditional banks can be infuriating sometimes due to their frequent network issues coupled with the stress you go through when you visit their branches. This is why it’s important you have a more reliable alternative.

Over the years banking has gone digital, paving the way for new online focused digital banks to emerge. These virtual banks are often more reliable than traditional banks when it comes to online transactions.

While being focused on making sure you have a better customer experience, digital banks perform better compared to regular banks. These types of banks also known as Neobanks has no physical branches. They provide you a full banking experience on their mobile apps. 

You can create an account within minutes without leaving your home. Send and receive large sums of money without worrying about network problems which are often associated with traditional banks. 

Benefits of Digital Banks over Traditional Banks

They’re important benefits you will enjoy while using a digital bank. We outlined them below.

Reliable transactions

You will enjoy cheap, fast and reliable money transfers. This is very important for business owners who want instant confirmation on transactions.

Lower transfer fees

Regular banks come with higher transaction fees compared to digital banks. Also, you don’t get cash backs on transactions no matter how many you perform. Unlike digital banks that reward you for using their services.

Better customer support

No physical branches no problem, enjoy good customer support when you run into a problem without having to leave your home.

Free physical and virtual cards

Many digital banks offer free physical or virtual cards upon registering an account with them.

Savings and budget plans

Access to savings and budget plans to help you manage your finances.

Below are some of the best digital banks you can register with to enjoy their top tier banking services.

1. Kuda Bank

Kuda Bank lets you save, spend your money without charging any fee. They offer different range of services that helps you achieve your financial goals. Their transfer fees are relatively low. You even get 25 free transfers to other banks every month.

Key Features:

  • Low transfer fees
  • Free debit card
  • Awesome budget plans
  • Save every time you spend
  • Free instant alert service

2. Chipper Cash

Chipper Cash is another digital bank on our list. Send and receive money within Nigeria and across African countries such as Ghana, Kenya and Uganda.

You can also transact money across-border at a low rate. Send and receive money from relatives or friends in the US and UK easily, fast and securely.

Key Features:

  • Send and receive cash easily
  • Free transfer and cashbacks
  • Free Virtual Debit Cards
  • Invest in stocks and crypto
  • Low cross-border rates

3. Alat

Alat is owned by Wema Bank but don’t be taken aback by that. They operate as a digital bank and provide you the full experience of one. Alat prides itself as the first Nigerian fully digital bank.

You can open and manage an account with them without going to a Wema branch. Their 24/7 customer support is always there to make sure your complaints are taken care of.

Key Features:

  • Fast and easy transfers
  • Free card delivery
  • Savings plans and goals
  • 24/7 custom support
  • Easy access to loans

4. Vbank by VFD

There’s no hidden charges when you send or receive money with your Vbank account. Zero fees on all transactions to all banks.

Vbank Multiple Card feature lets you add cards from different issuer to your Vbank account. You can then perform all your transactions from one single app.

Key Features:

  • Zero transactions fee
  • Multiple cards feature
  • Advanced budgeting plans
  • Multiple payment options
  • Physical and virtual debit cards

5. Sparkle

Sparkle provides you an easier way to send, receive and manage your money. Open an account in under five minutes and enjoy Sparkle Stash features which allows you to save money for rainy days.

You can also request a physical or virtual debit card for easy payments and online purchases.

Key Features:

  • Easy and fast transactions
  • Physical and virtual debit cards
  • Sparkle Stash saving feature
  • Multiple payment methods
  • Account analytics


Having an account with at least one digital bank will prove helpful especially if you’re a business owner. For easy, fast and reliable online transactions digital banks come highly recommended.

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