Guide To Setting Up A Digital Bank In Nigeria

A digital bank is a technology banking system that provides virtual financial services. Digital banking has becoming very popular in Nigeria with the establishment of digital banks. These digital banks like Kuda, Vbank, and ALAT by Wema provide a seamless means of banking by allowing customers open accounts, request debit cards, transfer, savings, payment of bill, etc.

Generally, there is no specified licencing regime for digital banking mandated by the Central Bank of Nigeria (CBN) which is the body that regulates the financial sector in Nigeria. Proposed digital banking companies must choose one of the available financial licences such as, payment service bank licence, microfinance bank licence, commercial bank licence, and others. However digital banks are commonly incorporated as Microfinance Banks (MFBs) because of its advantage of being cheaper to start and it is malleable to fit a number of the product offerings.