What do you think of digital banks? Are they solving a unique problem?

I dislike going to the bank; I think it’s a waste of time and energy. I love the idea of digital banking, but I don’t know how long it would take for us to get it right.
I saw an interesting review of digital banks on Benjamindada’s blog.

I have 2 digital bank apps on my phone, but I haven’t done anything serious with them. What do you think about digital banks? Do you have any on your phone? Have you used any recently?

Image credit: Benjamindada’s blog

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I registered with Kuda Bank a few months ago. Haven’t used them since then. I guess mentally I still don’t regard digital banks as actual banks yet.
Their initiatives and products are very interesting though.
More adoption might drive a cashless vision, but issues of security and habits still remain. I mean, who do I run to if my network is poor?

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A platform like sparkle built an in-app chat bot.

Well for me, their customer care services haven’t been really good, particularly Alat by Wema. Besides, they seem to be prone to making errors causing security concerns.

I guess I don’t see any pressing reason to jump ship for these digital banks.

Some of the features I still fancy though are the virtual dollar card and the interest on savings.

I think those owned by physical banks with tech executives actually have an edge in attaining market adoption and marketshare.

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Welcome to the Community, @Johnson_Ishola! :tada:

I totally agree with you. But interesting I’ve met people who wholly rely on digital-native banks like Kuda Bank. I assume their customer care is somewhat better, + they also deliver debit cards to their customers.

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That’s true @sammie. For the most part of December 2019 and January 2020, I relied on Kuda. Saw their free 25 transfers every month on Techpoint and I jumped on the platform. I used to travel alot then and police would always try to get into your phone and even your bank app if you’re unlucky that day. None of them knew Kuda was a banking app so I could safely stash my money there without worry and withdraw it with my card anytime, which was also free.

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Wow… smart :joy:

Sounds cool. I’ll definitely try Kuda bank

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Now I feel like I deserve a referral cut :joy:

:upside_down_face: Kuda seems nice. But anything fully digital in Nigeria fills me with a little concern.

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They are solving many problems. (OBVIOUSLY) My only gripe is there aren’t enough experiments out on the market, exploring different niches. More competition would be good for the continent. I would like to explore the question of what fintech solution is required to promote inter-Africa trade and take advantage of the recent AfCFTA agreement.

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In my view, they are not differentiated from existing banking apps in anyway. Plus the offline presence of these banks provide comfort if/when you can’t get internet access. Which is from often to constant if you are somewhere in Nigeria.

In my view, they need to start solving problems from remittance to payments. Something like a piggyvest/barter/sendwave hybrid might work for me.

capisce

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Right! IMO, the ideal digital bank should incorporate everything from saving and investment to payments, budgeting and so on. It can be frustrating to have to signup on several platforms for these services.

I have been using Rubies for close to a year and the bliss that comes with banking with them is second to none. The customer service is top notch and the ease of using their app is intriguing. What promised is what they have been delivering. Really, I have not been to bank in 3 years.

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There may be a super-app one day, you know, trying to do what interswitch tried to do with bill payments. Incorporating every single financial transaction. ( I think that is what OkraNg is trying to do)

But until then, I have too many bank accounts already.

Side note: I have this huge fear(irrational?) that the CBN will come up with one policy that puts digital banks at a disadvantage. Much like what happened to gokada and Oride. But despite being unlikely, this is a fear I have and it has discouraged me from using any “digital” banks.

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I actually understand your point of view. I’m not actually an advocate for digital banking but just happen to share my pleasant experience with one of them. BTW, I’ll enjoy it while it last.

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What I’m keen to investigate is the how to make a digital bank. Elon musk and his pay pal friends originally sought out to replace banking completely with what eventually became PayPal. Where does one look to learn the financial machinations of banking? Sasai is a payment platform I’ve also taken note of. They jumped right into being a super app. But I don’t think the adoption of it is happening at the pace they had hoped.

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I really don’t find a standout feature that my traditional bank app(I mean Top traditional banks) doesn’t offer already, you can correct me if I’m wrong. but I feel in terms of less or no cost on these services, they have an advantage.
Lol, I know this is funny but why do I feel the comments here are from people working in kuda and the rest.

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I’ve been using Kuda since last year as my current bank account. Pay bills, transfer, withdrawal, etc. I don’t even user the 25 free transfers at the end of the month. Its my default bank now. I used them so much that I lost the card and got another in a space of 1 week. All my other bank cards have expired and I don’t think I have time to go to bank to renew.
Definitely recommend Kuda 10/10

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I use personally @SmartTeller banking platform.

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