When Wema Bank launched its digital bank, ALAT, in 2017, it signalled that Nigerian commercial banks had woken up to the age of fintech products. Industry experts expected other commercial banks to follow with their own fintech products.
Four years later, most banks have not gone on to launch their own digital banks. Instead, commercial banks are launching financial products that are competing with the different digital banking offerings—from easy lending to payments.
But beyond features, digital banks are appealing to the younger generation due to the simple user interface designs on their digital platforms. Commercial banks such as UBA, Providus Bank, and Globus Bank have developed strong digital platforms; they are also providing simpler user experiences for their digital banking products to better compete with the digital banks.
Digital banks vs digital products
There is a difference between a digital banking product and a digital bank. Typically, they both involve users being able to