Imagine opening a fully-functional bank account in just five minutes. This probably sounds too good to be true. But it is happening, made possible by the disruptive technologies of small challenger banks in Nigeria.
Nairametrics’ Founder, Ugochukwu “Ugodre” Obi-Chukwu, recently shared his experience with this disruptive new way of banking. Writing on his Twitter page, he recounted how a friend of his exposed him to this new bank account opening reality.
Ugodre’s friend is Nonso Okpala, the Group Managing Director and Chief Executive Officer of VFD Group. Apparently, VFD Microfinance Bank has this highly optimised mobile banking app that makes it possible for users to open new bank accounts within five minutes. Ugodre said he was initially doubtful when his CEO friend told him about this app. But then again, we all know that it only takes a trial to get convinced.
He urges me to go ahead and register that I’ll have my account setup in 5 minutes. I’m like hell no.
No bank in Nigeria can open an account for you in 5 minutes on mobile.
Or so I thought…
— Ugodre (@ugodre) February 19, 2020
As Ugodre was made to discover there are, indeed, apps like that of VFD Microfinance Bank which make it very possible to quickly open a brand-new account. Let’s call them challenger banks because they are really giving traditional banks a run for their money.
I literally opened an account and transferred money to myself in 10 minutes in a club/bar.
Maybe I’m late to the game but this here is what I call disruption.
The challenger banks are here and it’s getting real.
— Ugodre (@ugodre) February 19, 2020
[READ MORE: How banks live fat on depositors’ fund)
It’s time for traditional banks to wake up
It is interesting how many of Nigeria’s oldest and biggest banks are still playing catchup when it comes to banking technology. Agreed, all of these banks have mobile banking apps. However, most of these apps cannot even effectively perform their primary functions, let alone help customers to open fully-functional bank accounts in less five minutes.
For some of Nigeria’s traditional banks, customers are still required to visit a branch, fill out numerous forms, and submit numerous means of identification before they can open an account. The truth is that many young and tech-savvy Nigerians simply do not have the patience for these processes. As such, it would not be surprising if they boycott the traditional banks and go for the likes of VDF Microfinance.
Of course I tried downloading some banking apps and the experience is …well….dated.
One actually tells you to go to the branch to fill forms. Like really??
Are there any Nigerian bank apps that can open an account and make you transfer in 10 mins? I doubt it…pls share
— Ugodre (@ugodre) February 19, 2020
By the way, there are a couple of other new technology-driven banks that make it possible for users to set up an account in less than five minutes. Ugodre said he tried them all and they are working. See below.
Mehn so far I’ve tried @kudabank @eyowo @walletsafrica @PiggyBankNG @rubies_ng
All easy to open and in 5 freaking minutes. 🙆🏽♂️🙆🏽♂️🙆🏽♂️
Ahhh Nigerian banks need to wake upppppp!!!!
— Ugodre (@ugodre) February 19, 2020
Indeed, it is high time for Nigerian banks to become more aggressive with their technological innovations. They must ensure to make better use of data, whilst also guaranteeing positive customer experience. As Ugodre opined, this is the only way they can remain relevant in this day and age.
For banks to stay relevant in this digital age they have to be more aggressive with innovation, make better use of their data and also make user experience their priority.
Gen X & Z want to experience first and share the fun with others. They don’t want plenty legwork.
— Ugodre (@ugodre) February 19, 2020
While technological innovations from these challenger banks are great to experience, I wound not jeopardize the security and safety of my funds that the Cbn regulated traditional banks offer.
Exactly. The traditional banks still have an edge when it comes to security and safety of funds, at least.
However, I agree that they step up their game too. When we eventually show up at the bank, they shouldn’t make us wait/spend hours trying to get things done that should be considerably automated to operate with ease.
Done setting up my money Lion. Can’t be found wanting again