Their model has made it easier to reach unbanked and underbanked Nigerians, especially in rural communities where physical bank branches are still scarce.

Some popular digital banking platforms in Nigeria include Kuda Bank, Palmpay, ALAT by Wema, VBank, GoMoney, Paga, Sparkle, Rubies, Eyowo, Fundall, PocketApp by PiggyVest, Moniepoint Inc., and Opay.

These platforms rely on easy-to-use mobile apps, round-the-clock services, and fast account creation. With this approach, they meet the growing demand for instant, digital-first banking, especially among young people and small businesses.

The old routine of visiting a banking hall to open an account or complete basic transactions is fading, as many of these processes now take only a few minutes on a phone.

Some digital banks, such as Moniepoint, have even grown into unicorn companies, private startups valued at $1 billion or more, within a short period.

The use of Point of Sale (POS) machines, mostly operated by fintech companies, has also helped expand access to financial services across Nigeria in the past decade.

Another advantage digital banks have over traditional banks is speed. Transactions are generally quicker and more seamless, reducing delays for customers.

Key Drivers Behind Their Growth

Convenience & Accessibility

24/7 Banking: Services are available anytime, without the limits of traditional banking hours.

No Physical Branches: Customers avoid long queues, travel, and paperwork.

Mobile-First Approach: Built for smartphones, which most Nigerians use daily.

Cost-Effectiveness

Lower Operating Costs: With fewer overheads, they can provide cheaper or free services to customers.

Innovation & Better User Experience

Smart Tools: Features like automated savings, budgeting tools, and simple investment options.

Easy Onboarding: Accounts can be opened quickly using basic details like BVN, name, and phone number.

Financial Inclusion

Serving the Unbanked: They reach rural and underserved areas where traditional banks have little or no presence.

Youth-Friendly: Young Nigerians prefer digital banking because it fits their lifestyle.

Speed & Efficiency

Instant Transactions: Real-time payments and transfers are now common.

Fast Loans: Digital lenders use data to approve small loans quickly.

Digital banks are growing fast because they provide faster, more convenient, and more accessible services that match the everyday financial needs of Nigerians. This has made them a strong force in customer acquisition across the country.

While traditional banks deserve some accolades for digitizing some of their operations, they are still trailing in the aspect of making finance (loans) accessible to customers. The processes involved in accessing a loan from deposit banks are time-consuming and almost impossible. 

However, a digital bank like Carbon, which has been in operation for the last 10 years, has been on the front burner, disrupting and innovating its offerings to Nigerians. 

Accessing Loans from Carbon

Carbon’s major goal is to empower all people with financial access. Its loan process is designed to fit customers’ needs with a low-interest rate.

As a digital lender, it issues funds in an unsecured loan based solely on the borrower’s creditworthiness and promises to repay.

“Access to finance is one of our biggest achievements in the last 10 years,” Chijioke Dozie, Co-founder & CEO of Carbon, said.

“If you look back 10 years ago… If you ask a 22-year-old on the street right now where she can get financing, she will probably know and rattle off a list of all the fintech companies that will give her a loan. Ten years ago, that was not the case.”

Chijioke argued that people who were gainfully employed couldn’t get access to finance at the touch of a button 10 years ago. 

Deposit banks do not believe Nigerians are credit-worthy, but Carbon has assessed about 4 to 5 million people for loans, and Nigerians are paying them back. 

“But I think the fact that we’ve been lending for 10 years is a testimony that Nigerians do pay back if you have good credit processes in place. And that’s something we also found out ourselves. 

The digital bank conducted data collection and analysis from about 5 banks and discovered that most Nigerians who were indebted wanted to pay back but were constrained by the payback modalities. 

Before we started carbon, we started a debt collection business, and when we were dealing with Nigerian debt, we realized a lot of people wanted to pay, but the banks had not set it up so they could easily repay the money back. “

“So, I think, you know, the ease of how people get money today. I think this is one of our legacies, we made it accessible. 

We’ve shown other financial institutions, especially banks, that you know, Nigerians are creditworthy because, you know, we just felt that the situation where banks will take your money, take your salary, keep it and won’t even give you a basic loan. 

“So they trust you enough to take your money, but they don’t trust you enough to give you back to give you something or to give you a loan. We thought that was unacceptable. 

“And when carbon started, we were giving money to people who had never banked with us.​ ​We were the ones giving them the money, not them,”​ ​he said.

Other digital banks give loans to customers, but a striking difference is that Carbon does not send unsolicited messages to the contacts of defaulters—a phenomenon that has been described as an invasion of privacy. 

Focus & Value Propositions 

Being customer-centric is a journey we are on, and we are making sure that all products and services are specifically tailored towards satisfying our customers, Chijioke said. 

“I think for us, you know, we want to distinguish ourselves by being customer-centric, and that’s a long journey. I don’t think any company can say that they have achieved customer centricity. So, for us, it’s a focus.”

Ngozi Dozie, Co-founder & Managing Director at Carbon, believes that there is no traditional bank that offers the types of customer-centric packages it provides to customers. 

“Every month in carbon, every customer that has a current account balance with us will get the interest rate. There is no management fee; there is no fee for anything.

Unlike in other banks, where customers are debited at the end of the month, here every customer is getting their credit. There is no bank right now.” 

According to Dozie, Carbon is doing several things in terms of innovation that put it ahead of its current banking competitors and is poised to do more. 

“When we started, they said customers were never going to pay back. We proved them wrong. They said we couldn’t give loans to customers. They said we couldn’t offer a free payment plan. We proved them wrong.”

He said that as core bankers and revolutionaries, Carbon is constantly looking to push the barriers and make sure that it’s all about the customers. 

If you’ve banked with any of our competitor banks for X years, and they can’t give you an unsecured loan or a free account, then we think something’s wrong.”

Furthermore, on offerings, Dozie said Carbon gives 1% cashback on all debit card payments, even if a customer spends up to 1 ​​million Naira.

“There is no bank right now that allows you to go to a restaurant, use a POS, and spread that payment over six weeks immediately from your app.”

“There’s no bank that tells you that it gives an instant refund. If you send the payment and it fails, you get an instant refund from Carbon.”

This evolution has been made possible via the development of Information Communications Technology (ICT). With the Internet becoming proliferated and much more accessible, all traditional banking activities are now carried out digitally. It is this phenomenon that paved way for the emergence of digital banks in Nigeria. 

These online banks in Nigeria are licensed by the Central Bank of Nigeria and they have physical offices. They also have their digital banking Apps found either on Apple or Google Store. With digital banking Apps, it becomes easier to buy airtime, pay bills, pay for visas, etc.

The first step toward any online banking transaction starts with downloading these Apps. After downloading, then you can register with your details such as email, and telephone number. 

Interestingly, data obtained from the Nigeria Inter-Bank Settlement System (NIBSS), reveal that about N54.98tn was processed through Nigeria’s electronic channels in the first two months of 2022.

Why Nigerians Are Embracing Sofri Digital Bank 

Sofri Digital Bank is a product of DLM Capital Group, the investment bank that operates in Nigeria. Sofri was unveiled in Lagos on Thursday, 21 April 2022. 

It was specifically designed to meet the financial needs of an average Nigerian. The digital banking App is fast, flexible, and reliable. The idea behind the Sofri Digital Bank is to take care of financial hiccups, providing borderless banking with ease and convenience.

Sofri is a one-stop-shop digital bank with a vision to become an enabler of financial liberty as well as provide easy access to financial products, the Managing Director of Sofri, Funsho Idowu emphasizes. 

“Our digital bank services include savings, deposits, loans, and investments – all tailored to your persona and needs. Sofri is a subsidiary of DLM Capital Group.

“This is what Nigerians have been yearning for over the years. Are there premium banking devices in Nigeria? the answer is yes, but how available are these services? 

“So, part of what we have done is to democratize premium digital banking services. All of the fantastic banking features you find across the world, especially in developed countries are what you can expect from Sofri Digital Bank.” 

Simplicity: The digital banking platform is completely simplified for the users to enjoy premium banking services. All that is needed is a smartphone and a telephone number to start.

Data Security: Owners of Sofri Digital Bank have invested heavily to ensure the security and confidentiality of customers’ data. and that’s why we continue to remain at the backend to ensure that you are happy with our amazing fantastic offers. 

Technology: The AI deployed on Bank Sofri is as intelligent as humans. It makes all the credit decisions. There is no human interface. There is zero collateral. There is zero time-wasting. There is zero paperwork. Every transaction is performed on the Sofri Digital Banking App. All users from 18 years old are able to build a credit profile. 

According to Idowu, the technology helps any potential investor compute rates based on volumes and duration of the investment. “For example, if you are earning N300,000 salary, and decided to invest N100,000 as fixed deposit. The AI technology immediately shows you the amount of interest to make on your dashboard. 

Transfers: You can do transfers with the bank Sofri to any bank in the country. This also includes the procurement of airtime, data; payment of bills across different locations. What stands out is the style and simplicity we have introduced. At the click of the button, anybody can perform secured banking transactions. This is completely different from the regular tradition. 

Sofri Digital Bank – Products

There are a couple of premium products designed and made available for Nigerians to enjoy on the Sofri digital banking App. 

Fixed Deposits: The digital banking App shows you exactly how much you will make on every investment. N100 million is the minimum for a fixed deposit for a duration of 30-365 days. This transaction could be performed in a few minutes. 

Loans: Nigerians want quick loans without paying too much interest over a certain period. It’s not always the case to pay exorbitant interest rates to enjoy digital banking premium services such as quick loans. Sofri digital bank has changed the dynamics because users now have access to quick loans as low as N5000 or as high as N5,000,000. In a few minutes, any user can finish applying for a quick. 

Sofri Digital Bank – Types Of Loan  

Sofri Salary Express Loan 

Sofri Rent Loan

Sofri Car Loan

Quick Cash Loan

Sofri Salary Express – This type of loan is made available for those employed in the public and private sectors.  The maximum Salary Express Loan accessible is ₦5,000,000 up to 18 months lease tenor. This also includes a 1% insurance fee for credit life.

It is also important to note that loan consolidation will be allowed when a customer has existing loans with other financial institutions with a good repayment history and no negative credit bureau reports.

Sofri Rent Loan: The Sofri rental loan is also available for up to 24 months of lease tenor. The rental loan may be used to finance the payment of rent on residential properties only. This is an opportunity that is as high as ₦5,000,000 (maximum) and to 18 months lease tenor

Sofri Car Loan: With a Sofri car loan you can get up to 60 months of lease duration anytime you take a loan from Sofri. You must have a good credit score and the maximum loan accessible is ₦5,000,000 and up to 18 months lease tenor. More so, if you are seeking for loan above N1,000,000, you will have to provide a guarantor or either of the obligor’s or guarantor’s 3 cheques.

Quick Cash Loan: It is an instant, short-term loan designed to take care of those moments where customers need to bridge gaps in finances for a short while.

The loan application and disbursement process take place within 5 minutes maximum time, and the repayable term is within 15 days to 180 days. The goal is to make Sofri customers have easy access to finance in times of need.

Investment: Any user can perform investment services on bank Sofri. There are multiple investments available for all Nigerians on the digital banking App. Investments in Sofri are as low as N1000. Some of the investment advisory services that people would ordinarily pay premium fees for are available for Sofri users. 

The Managing Director said Sofri Bank is licensed by the Central Bank of Nigeria and fully is insured by Nigeria Deposit Insurance Cooperation. 

Both are industry regulators that over-sight the activities of Sofri Bank. This also allays the fear of any potential customers that intend to invest or onboard the App. 

“There are many small and medium scale businesses, including corporates that want to raise funds. Sofri digital banking provides the opportunity for almost every Nigerian. 

“For example, an investment of N100,000 could be broken down into units, maybe N10,000. Rates are favorable to those investing or seeking loans. The Return on Investment (ROI) is as high as possible, and the interest on loans is as low as possible. These have been made possible to ensure flexibility to users.”

Why Nigerians Invest In Sofri Digital Bank

There are reasons why Nigerians are investing in the Sofri Digital Bank.

Flexible Tenor – Sofri’s investment tenors range from three to twelve months. All you have to do is figure out which tenor best suits your financial needs.

The online application process is easy and performed in minutes. Zero paperwork and zero collateral. Sofri Fixed Deposit offers an interest rate of up to 18% per annum for eligible investment sums.

Auto-Renewal Option – Sofri Fixed Deposit offers an interest rate of up to 18% per annum for eligible investment sums.

Attractive Interest Rates – Sofri Fixed Deposit offers an interest rate of up to 18% per annum for eligible investment sums.