Top 10 Digital Banks in Africa

Digital banks offer their services and products to customers through online platforms, diverging from the conventional model of banking that relies on physical branch operations. In the swiftly evolving landscape of technology, digital banking has quickly assumed a central role. The emergence of digital banks in Africa is no new or small feat either.

According to a collaborative report by BPC Banking Technology and Fincog, there were approximately 21 operational digital banks across Africa in 2021, with a significant majority—80% of them—concentrated in South Africa and Nigeria.

Digital Banks in Africa

Below is a list of the top 10 digital banks in the African continent.

Bettr South Africa

A fintech company founded in 2015 by Tobie Van Zyl, Founder & CEO, and Andrzej Stempowski, Co-Founder & CTO, located in Cape Town, South Africa. Customers have the flexibility to deposit funds through a network of over 1,000 partners, and they can access this service at 10,000 ATMs nationwide. Furthermore, Bettr offers users a complimentary Bettr card that grants access to online shopping and various services. This functionality extends beyond local borders, catering to users both domestically and internationally.

TymeBank South Africa

On September 28, 2017, the Prudential Authority of the South African Reserve Bank (SARB) authorized TymeBank to operate exclusively online. TymeBank has transitioned its core banking platform to the cloud, establishing itself as the pioneering bank in South Africa for such a move. In addition, TymeBank provides a range of services, including a transactional account, money transfer service, savings account, and an educational app. The plans include introducing credit cards, unsecured loans, and loans tailored for small and medium-sized enterprises (SMEs). TymeBank’s headquarters at 30 Jellicoe Ave, Rosebank, South Africa, serves as its sole operational base.

Chipper Cash

Launched in 2018, this application enables users in five African nations -Nigeria, Kenya, Uganda, South Africa and Ghana-, the United States, and the United Kingdom to settle bills, conduct cross-border money transfers, and purchase Bitcoin. Its revenue streams are generated through foreign exchange fees and commissions from cryptocurrency brokerage. Chipper experienced significant growth, expanding its user base from approximately two million in 2020 to over five million by the conclusion of 2021. Also, this digital bank has issued over 600,000 Visa cards.

Alat Digital Bank

A fully digital bank powered by Wema Bank Nigeria provides a comprehensive digital banking experience that is straightforward, dependable, and user-friendly. Alat’s innovative technology encourages users to approach money management uniquely, empowering them to bank seamlessly on the go from any location. It is also Nigeria’s first fully digital bank, launched on May 2, 2017. Alat offers 24/7 access to banking services, seamless money transfers and cutting-edge security.

Zazu Africa

Zambian fintech startup launched in 2015 that provides digital banking services to individuals and businesses. Offering a wide range of features and products that include ZazuPay, ZazuCard, ZazuSend, as well as Zazu Virtual Card which provide various options to customers. It is the first digital-only bank in Zambia. According to Zazu, the cost of opening and operating a bank account in Urban and Rural Zambia was 11% and 34% respectively. It also emphasized the long wait time associated with the KYC process which discouraged a lot of people from opening bank accounts. Hence the need for a digital bank which was free to use and at no cost to customers.

Kuda MFB

Kuda Microfinance Bank a fintech enterprise, founded by Babs Ogundeyi and Musty Mustapha in 2019, operates in both Nigeria and the UK. Originally established as Kudimoney, or “the bank of the free,” it started as an online-exclusive savings and lending platform. Having its headquarters in London, United Kingdom, Kuda was listed as one of the seven WEF African technology startups of 2021. Opening and operating a Kuda account only takes a few minutes and customers can also request a virtual card or a physical card which takes only two weeks to be delivered for a token. Kuda offers its customers 25 free monthly transfers, as well as a Spend And Save feature which allows you to save a certain percentage on every amount you spend.

Carbon

Headquartered in Lagos, Nigeria, Carbon is a global company consisting of over 90 employees and operating in Nigeria, Kenya and Ghana. Founded in 2012 as “One Credit” by Chijioke Dozie (Co-founder and CEO) and Ngozi Dozie (Co-founder and Managing Director), Carbon has helped individuals and businesses by providing them with financial services like loans, Buy Now Pay Later as well as savings platform.

Bank Zero

Established on 16th January 2018 and officially recognized by the South African Reserve Bank, Bank Zero is a uniquely digital mutual bank operating exclusively in South Africa. It also extends its banking services to individuals and businesses, contributing to the growing landscape of innovative banking institutions in the country, alongside others like TymeBank and Discovery Bank. Providing banking services at zero to no cost.

Eversend Digital Bank in Africa

 A digital-only Ugandan finance platform providing cross-border money transfers among other services, founded by Stone Atwine and Ronald Kasendwa in 2017 and launched to the public in 2019. Live in Uganda, Kenya, Nigeria, Rwanda, Ghana, and Nigeria, having its headquarters in the United Kingdom (184 Shepherds Bush Road London, England, W6 7NL, United Kingdom). The application features multi-currency wallets and a currency exchange functionality, providing users with real-time exchange rates for USD, EUR, ZAR, GBP, NGN, UGX, GHS, KES, and RWF.

SOL Wallet

SOL Wallet, a mobile wallet based in South Africa, empowers users to establish online multi-currency accounts. With the capability to exchange currencies at interbank rates, engage in FX and cryptocurrency trading, and invest in stocks, SOL Wallet offers a comprehensive financial platform. Also, users can conveniently pay for services and utilities, transfer funds to friends, obtain an SOL debit card (issued by the Standard Bank of South Africa), and make prepaid purchases, including airtime, electricity, and DSTV. Additionally, SOL users have the flexibility to withdraw cash from ATMs and participating stores.