THE IMPORTANCE OF DIGITAL BANKING IN NIGERIA
Digital banking is the computerization of banking services to reduce risk, improve efficiency, and serve customers better. It is an online platform where banks/ financial firms deliver bank products and services. This could either be done through a website, an online banking app or a mobile banking application.
It is important to note that digital banking goes beyond just online banking. While Online banking focuses mainly on digitizing “core” aspects of banking such as remote deposits, money transfers, bill pay, and basic online management of accounts, digital banking focuses on digitizing every program and activity carried out by financial institutions and their customers. Online banking is sometimes referred to as e-banking, virtual banking, or internet banking and this is not the same as digital banking.
With the emergence of so many digital banks, digital banking is gradually becoming a familiar word is everyone’s vocabulary. Countries with developed economies have long adopted fintech in a bid to make everyday banking more accessible and now, Nigeria is joining the trend.
Following the establishment of Nigeria’s first traditional bank, the banking industry has been faced with a lot of challenges ranging from poor asset quality, poor capital base, persistent cases of distress and failure and so much more.
The history of digital banking in Nigeria cannot be told without mentioning these challenges faced by the traditional banking industry. These challenges have spurred banks and individuals to introduce several banking technologies to the economy.
Ever since the launch of the first digital bank in Nigeria, banks have been coming up with new digital programs and special products to offer to its customers in a bid to catch up with global trends and retain customers who may prefer to go digital. So far the state of digital banking in Nigeria has begun to improve as many banks have not only successfully established a presence online by investing in technology and widely adopting the electronic and telecommunications networks for delivering their value-added services but have also developed digital banks from scratch.
The quest for better access to services, better prices, and higher privacy has made customers migrate to mobile banking. With the use of their mobile banking app, customers can easily carry out transactions from the comfort of their homes. Digital banks like Mint Digital Bank have made it easier for their customers to open an account online without having to visit the bank physically. Traditional banks have also been able to make higher profits and also work effectively by just tapping into the digital banking system. The importance of digital banking in Nigeria simply can no longer be ignored.
The following points, explain the importance of digital banking in Nigeria
Improvement of banks’ customer service
The primary concern of many traditional banks has always been to deliver a quality and exceptional quality service. Not all banks have been able to achieve this due to a lack of proper communication between the bank and the customer. With the rise in digital banking, customer service has tremendously improved in the banking section with the introduction of real-time customer support channels, such as live chat and co-browsing, which is highly effective for query resolution. Digital banking has broken the barriers between the financial institutions and their customers as customers can now effectively communicate with their banks from the comfort of their homes. This has helped to foster trust and loyalty between the customer and the bank.
Digital banks have helped traditional banks save money on back-end office operational processes, physical infrastructure, and workers’ salaries
In a bid to be closer to their customers and reach out to everyone, banks have been creating so many branches. A bank can have close to 50 branches or more within a state, thus making the bank spend much capital in building branches but digitalization has made it possible for everyone to access his or her bank without having to go there physically. This has helped to reduce bank’s brank costs while also providing accessible, personalized and easy-to-use banking services to customers
By introducing automation in various processes and moving their transactions online, banks have been able to decrease costs and streamline the operational processes to deliver more value to customers. Digitization has helped banks to reduce overhead costs and staff expenses, which can be passed on to customers in the form of reduced charges. Some simple things such as swapping paper statements with e-statements can save time, money, and also the environment.
Digital banking often means 24/7 banking and banking services that are available everywhere. This feature of digital banking has helped customers gain access to their accounts 24/7 and no longer need to stand in lengthy queues for the simplest of transactions. Digital banking via banking apps makes it convenient to bank anytime from anywhere, adding to the customer experience significantly. This effortless and easy banking has helped to reduce stress and the security risk of carrying large amounts of money around as with Just with a click, transactions are made.
Digital banking has made it possible for everyone to have available and equal opportunities to access appropriate, affordable, and timely financial products and services such as applying for loans. It has also made customers become managers of their accounts. They can go through their bank records without having to go to the bank to request a statement of account
In conclusion, the importance of digital banking in Nigeria is quite enormous as digitization is gradually taking over the financial institution. Hence banks must make investments in technology for a better future
Mint Digital Bank is a tech-startup in Nigeria, provided by Finex Microfinance bank. Finex microfinance bank is licensed by the central bank of Nigeria and all deposits are insured by the Nigerian Deposit Insurance Corporation (NDIC)
We offer our customers a better banking experience using the latest banking technologies. The digital platform promises no hidden charges, giving customers the power to decide exactly what kind of banking they need with no surprises or hidden charges.
WHY NIGERIAN CONSUMERS SHOULD CHOOSE DIGITAL BANKING
Banking in Nigeria is restructured constantly but one thing is certain- digital banking has come to stay following the technologies introduced by banks in recent times.
Digital banks are banks that let you carry out all banking processes over the internet using your computer or a mobile device without having to visit a bank branch.
With the outburst of so many digital banks, consumers have been encouraged to choose digital banking. If you don’t own an account with a digital bank, you may be wondering why so many consumers use them and how they differ from traditional banks.
There are many similarities, but major differences have made digital banks attractive to web-savvy consumers. Identifying the main reasons why you should choose a digital bank can help you choose the right banking solution for your needs.
Absence of Additional Fees and Hidden Charges
One of the top reasons to use a digital bank is that you can own and access an account online as often as possible without incurring additional fees. It is completely free to open/sign up for a digital bank account once you open a digital account; you are entitled to all the privileges that come with the account as long as the account holder maintains an account with the bank. The monthly maintenance fees that are usually imposed for having an account is zero for most digital banks
Many digital banks like Mint offer accounts services without any hidden charge to anyone—often no minimum operating balance
Additional fees like withdrawal fees, transaction fees and so much more are absent in most digital banks and the fact that all these transactions can be carried out without showing up in a physical branch makes it even more awesome.
Higher Interest Rates on Savings
Digital banks are known for paying higher annual interest rates on savings accounts. The reason is that digital banks don’t have to pay the overhead costs associated with building and maintaining a physical branch, so they can pay a little more to customers.
If you’re looking for the absolute highest interest rate available, a digital bank like Mint is probably where you’ll fare best as one can earn up to 8% interest on his/her money.
Digital Banking Saves Time
Consumers always have reasons to visit the bank almost every day, either for complaints, deposits, bill payments and so much more. Banking could be time-consuming but with mobile banking, being a part of digital banking, consumers can easily handle all banking services with just an internet-ready mobile device. This helps you to maximize time during limited business hours. In case of complaints or difficulties, most banks offer customer service—via live chat, email, toll-free phone lines or social media channels
Digital Bank Accounts Could Be Accessed From Anywhere
The fact that digital bank accounts could be accessed from anywhere and at any time is another reason why you should consider digital banking. With your bank app, you can easily access your account information making banking possible while at work or odd hours. All you need to access your account is an internet access, your username and password.
Scheduling of Regular Payments
Digital banking has offered consumers the freedom to schedule regular payments such as rents, salaries, energy bills, and other fixed payments ahead of time using the mobile banking app. These payments are automatically deducted from your account when the time for payment comes up. Some digital banks send a reminder a few days before payment; this is to enable you to fund your account in case of insufficient funds. Payment of regular bills could be scheduled to be a recurring/one-time payment to payee.
Mints Digital Bank for instance, offers tech products that have made it easy for people to transfer money, request money from mint customers, pay bills, top-up your phone, fund your virtual card, set up recurring payments, pay back your loans, and much more with just one app.
With Mint payments, you can set up auto-debit or even reminders for bills that must not be missed. However you want it, it is all in your control to decide.
If you are computer literate or you just love to keep up with the times, then you should consider digital banks as they generally lead the way in banking technology. Most digital banks offer certain tech-forward features before even the largest traditional banks. One of such features is mobile check deposit- This is a good way to fund online bank accounts without having to mail in deposits or pay visits to a bank.
Digital banks also allow you to get features you might not otherwise have access to like managing your accounts yourself, preparing of annual budgets and setting up a flexible goal-saving account
Are you searching for a secure way to carry out bank transactions? Then you should consider digital banking. Digital banking is generally regarded as one of the safe ways to make transactions provided you are making use of a legitimate bank that offers insurance on your deposits from the Nigerian Deposit Insurance Corporation (NDIC). But you’ll need to keep your system current to avoid phishing scams, which you can fall victim to if a copycat website tricks you into providing your personal information or bank account details.
Digital banks are a convenient option for every customer seeking affordable, higher interest accounts with advanced features, and overall, they’re a useful addition to the banking world.
Mint Digital Bank is a bank provided by Finex Microfinance bank. Finex microfinance bank is licensed by the central bank of Nigeria and all deposits are insured by the Nigerian Deposit Insurance Corporation (NDIC)
Mint Digital Bank which is the best bank to bank with works with an advanced tech team. This team is focused on protecting your privacy and giving you the highest form of security you need while making use of Mint products. All personal information collected is used to offer the best banking services that suits you and your personal information is kept private and confidential.
In as much as digital banking is becoming the order of the day, it is advised that consumers take necessary precautions online, especially when using personal data such as PINs and passwords.