5 Best Neobanks in Nigeria

As technology develops, the banking industry has been embracing new and inventive methods of conducting business. Neobanks, which operate solely online, pose a threat to conventional banks in today’s financial industry.  Unlike the conventional brick-and-mortar banks in Nigeria, these neobanks provide the same banking services for reduced or no cost, with superior customer service and emphasis on innovative features and services.

There are numerous neobanks currently in Nigeria, with many offering excellent services. If you’re stuck on the decision of which to choose from, then you’re in the right place. In this article, I will discuss the best neobanks operating in Nigeria:

1. Kuda Bank

Kuda Bank is a digital bank based in Nigeria. In contrast to conventional banks, which only provide in-person services at their locations, Kuda Bank offers bill payments, loans, transfers, and 25 complimentary transactions every month via its mobile app.

The Central Bank of Nigeria (CBN) has permitted Kuda to operate as a microfinance fintech and has completely regulated the platform. Since its founding in 2016 and start of operations in 2017, the digital-only bank, which mostly uses smartphones, has provided services to over 1.4 million Nigerians.

Kuda bank services

• Free savings account with zero maintenance charges
• 25 free bank transfers each month
• 15% savings interest return on your deposits
• Short-term overdraft loans
• Free Kuda bank Visa debit card
• N1000 referral bonus

How to open a kuda account

• Get the Kuda mobile application from the Apple App Store or Google Play Store.
• To register, launch the app and choose “Create an Account.”
• Input your contact information, such as your email address, phone number, and name.
• Create a four-digit PIN so you can access your account.
• Fund your account and start using Kuda immediately.

2. Vbank

V bank, also referred to as V or V by VFD, is a well-known online banking platform and software in Nigeria that functions as a digital bank. Using V Bank, Nigerians may save money using their phones and receive higher interest rates than those provided by traditional banks. 

V’s unrestricted nature is one of its wonderful features. Transferring funds to a different bank account or another V account does not incur fees. Additionally, you may withdraw cash from ATMs without using an ATM card, so there are no maintenance costs associated with using a card.

Although it is an online bank, V Bank functions similarly to a traditional bank. After downloading the app on your phone, you create a V account, start saving, and be paid interest on your savings. When you fix money using the fixed deposit function, you may get a very attractive interest rate.  Without using a debit card, withdrawals may be made whenever necessary (ATM card).

Vbank services

• Free savings account
• No fees for transactions
• Competitive savings interest rates
• Adaptable fixed deposit
• Card-free withdrawal
• Bill payment
• Budget planning
• Biometric protection

How to open a Vbank account

• Get the V by VFD app from the Apple App Store or Google Play Store.
• After the app has downloaded, open it.
• Select “Create Account.”
• Enter all necessary information.
• follow instructions and finish the registration process

3. Piggyvest

Since its first introduction as “Piggybank.ng” on January 7, 2016, PiggyVest has been a part of several tales of financial liberation. It is now one of the top financial technology services in Africa, serving both professionals and students. 

For Nigerians of all ages, PiggyVest is an online platform that makes investing and saving easier. It’s a safe method to invest and save money, and depending on the choice you choose, it may give interest rates ranging from 7% to 35%.

Saving may be done in a lot of ways. Both individual and group savings are supported. You can save with your spouse or a friend—you can save with anyone. 

PiggyVest services 

• Piggybank: As the name suggests, PiggyBank is where you save your money. You can decide to save daily, weekly or monthly it’s up to you. Just set up the frequency that you want and the money will automatically be deducted from your bank account. The more you save, the more interest accrues so you have nothing to lose by saving money on piggybank. You can get 10% annual percentage rate on your savings.
• Investify (make long-term investments): Piggyvest isn’t just a platform to save money, you make money too. One of PiggyVest’s services that assists users in making low-risk investments is Investify. The firm has investigated and approved these investment options. If you are concerned about insurance, do your research before making an investment since each opportunity has a distinct insurance policy.
• Safelock (Reserve money): With Piggy Vest’s Safelock function, consumers may save aside money until a certain time. Of the money you lock, you may earn up to 13%. It functions similarly to a fixed deposit.
• Target savings: Target savings is a tool that lets users save money on their own, with friends and family, or in a group to reach a certain goal. You may take a free withdrawal on the designated date after reaching 70% of the goal. 10% interest is paid on target savings.
• PiggyFlex: The primary account that receives all of your savings, interest, and targets is called PiggyFlex. You may take money out of this account or send money to other individuals. For instance, when you make a withdrawal, the money you save in your PiggyBank gets transferred here. The same as the ones on your goal savings, safelock, and investify.

How to create a PiggyVest account

• Download the piggyvest app.
• Click on “Create an account”.
• Input all the required information.
• Select the method of saving that best suits you. 
• Enter your information and begin saving.

4. Palmpay

Through its mobile app, PalmPay, an e-wallet and online payment platform, provides customers with financial services

You may send and receive money between users on PalmPay, as well as pay bills, top up your bank account, and reload airtime. You may use the reward points you get after making certain purchases whenever you’d like.

PalmPay has a multitude of capabilities that enable it to provide consumers with payment services. It serves as a substitute for using a standard bank account for doing straightforward transactions. Compared to most typical banks, its service fees are quite low.

With PalmPay, you can also take advantage of Virtual Top Up services. Within minutes, you may transfer money to friends and family in a secure manner. Both phone recharging and a variety of subscriptions are available.

Within the app, affiliate marketing is another option. Once your friends make their initial deposit, you may enjoy the perks that they will get. They will also get a welcome bonus as soon as they register for a PalmPay account. 

Palmpay services 

• Save money 
• Make transfers with minimal transactional service fees.
• Simple bill payment and quick VTU services.
• Assurance of user data security and preservation.
• Incentives and bonuses after completing deals and referrals.

How to create a Palmpay account

• Download the PalmPay mobile app on your device which is both available on Google Play Store and App Store. 
• Open the app, then choose the Sign-up option.
• Enter your phone number and choose your country code. Here, a verification code will be sent to your phone number.
• Create a 4-digit PIN.
• Follow the prompts to complete your registration.

5. Opay

With a license from the CBN and insurance coverage provided by the NDIC, Opay was founded in 2018 to promote shared prosperity and expand financial inclusion via technology. Currently boasting tens of millions of users, agents, and merchants in Nigeria, OPay is a one-stop financial service platform for payments, transfers, savings, loans, and other vital services for users. It also offers the greatest point-of-sale (POS) service for agents and acquiring services for merchants.

Opay services 

• Save money.
• Pay bills and subscriptions. 
• Buy airtime.
• Send and receive money.
• Get a loan through OKash’s services.
• Invest and earn interest every year through OWealth.
• OPay allows deposits to be made on betting sites. There is support for NairaBet, Bet9ja, Cloudbet, and Supabets.
• Earn money by signing up as a merchant. 

How to create an Opay account

• Get the OPay app from the iOS or Google Play stores.
• Open the application and register.
• You will be asked for certain details. Make sure you accurately enter all required information.
• To raise your daily transfer limit, you must provide a utility bill, proof of identity, and BVN verification.