Digital Banking In Nigeria: Procedure For Establishing A Digital Bank In Nigeria
DIGITAL BANKING IN NIGERIA With the increased popularity of digital banks like Kuda, VBank, Sparkle etc., in Nigeria and the various fund-raising announcements, there has been a growing interest amongst FinTech Founders and investors to offer digital banking services. As a result, FinTech founders are majorly interested in knowing the type of legal entity that is best suited for a digital bank. Generally speaking, there is no specific licencing regime for digital banks in Nigeria. Consequently, potential founders must work with one of the existing financial licences. The most suitable types of entities for digital banking services are: Payment Service Banks: The capital requirement for this licence is N5,000,000,000 (five billion naira). The holder of a Payment Service Bank licence is permitted to accept deposits from customers but cannot issue loans. Commercial Banks: A commercial bank can be incorporated to proffer digital banking as a product offering; ALAT by Wema Bank PLC is a