When COVID-19 happened in 2020, the financial sector had no choice but to adapt and pivot to adjust to the harsh reality. With physical branches shut down or strictly guided by COVID-19 safety protocols, banks and fintechs had to embrace online banking as a lifeline.
To understand how online banking has evolved in Nigeria post-pandemic, we will analyse five scaling strategies adopted by banks.
5 ways online banking has changed since COVID-19
1. Remote onboarding and digital KYC (know your customer)
Suppose you are the type who always had reasons to go to the bank before the pandemic. In that case, it is impossible to miss the long queue of Nigerians who are mandated to visit a bank’s physical branch with documents like utility bills, ID cards, and passport photos before they can create an account with the bank.
In post-pandemic Nigeria, many banks do not require Nigerians to take hours out of their busy schedule to queue for account creation. Instead, they have adopted Biometric Verification, Bank Verification Number linking and ID photo uploads to replace an era of long queues and manual paperwork.
2. AI Automation and Chatbots
Pre-pandemic customer support in Nigeria was mainly manned by human customer agents- think long waiting queues, emails and waiting indefinitely on the other end of the phone during a call to customer support, but the lockdown in 2020 changed everything.
Due to physical banking limitations, online banking usage surged, thereby creating more traffic than the banks can handle. This led to complaints about failed transfers, app glitches and relentless questions from Nigerians new to online banking. Traditional support teams became overwhelmed, and it was impossible to attend to all complaints. So, banks turned to chatbots and automation to answer FAQS, resolve basic account issues and guide users through online banking; ALAT by Wema launched Sara the AI chatbot while Access Bank introduced Tamara, the WhatsApp bot.
3. Digital Lending
Before the pandemic, getting a loan in Nigeria was not a walk in the park- it often involved visiting a bank branch, providing collateral and a long wait for approval. When the pandemic came, businesses had to shut down, salaries were affected, daily income earners were helpless, and traditional banks reduced lending due to economic uncertainties.
Digital lending platforms, mostly fintechs, leveraged these factors to offer collateral-free loans, which were disbursed within minutes or hours after an AI assessed the consumer’s credit scores. These loans were provided to individuals and small businesses.
Fintechs such as Carbon, Branch, PalmPay and Kuda capitalised on the increased exposure of Nigerians to online banking to promote the digital lending system to Nigerians who embraced the concept with open arms. However, the system later led to a series of harassment and defamation due to loan sharks populating the market.
4. Mobile Banking
Mobile banking has been in the Nigerian banking sector since before 2020, but the growth of mobile banking was slow due to Nigerians’ low interest in online banking. The pandemic led to the shutdown of bank branches and the need for Nigerians to rely on online banking services, primarily via their mobile phones.
To make the experience easier, traditional banks and fintechs started a race to improve user interface, app speed, digital self-service tools and friendlier UI designs. Banks and fintech post-2020 made significant progress:
Post-pandemic, Kuda, a mobile baking fintech, reportedly tripled its user base between 2020 and 2022. Similarly, ALAT by Wema improved significantly post-2020 to support features such as virtual debit cards, KYC verification through NIN and BVN, goal-based savings, etc.
5. Cybersecurity and Digital Literacy
The shift towards online banking came with its risk disadvantages- it exposed millions of first-time online banking customers to the unorthodox world of cybercrime, phishing, SIM swap fraud and misinformation. According to the Nigeria Inter-Bank settlement system, Nigeria lost over # 5 billion to fraud in 2021, with the more significant part of the loss through digital channels.
To address the growing cybersecurity problem, banks and fintechs introduced multi-factor authentication (MFA), which combines pins, biometrics, and device recognition. One-time passwords also become more secure with warnings against sharing codes.
Other steps taken to improve cybersecurity include:
- AI systems were implemented to detect suspicious transactions.
- Financial institutions began an aggressive campaign to educate Nigerians on cybersecurity.
- The Nigerian Communications Commission partnered with telecoms to block SIM Cards linked to fraud.
Nigerian fintechs and banks leading the charge
1. Kuda Bank
In the days that followed the pandemic, Nigeria underwent a significant shift in consumer behaviour, with millions moving away from traditional banks to the comfort of mobile banking apps. During the change, Kuda stood tall as one of Nigeria’s online banking giants.
Initially founded in 2019, it introduced a fully digital mobile banking system to Nigerians seeking flexible and cost-saving financial institutions. The pandemic accelerated its adoption, making it an ideal choice for tech-savvy Nigerians, first-time online bankers or anyone tired of traditional banks.
Kuda’s mobile app offers more than routine bank app features- it functions as a personal finance assistant. The app incorporated AI and data analytics to provide users with spending infographics, savings prompts and budget breakdowns. The app allows users to control spending limits, track categories like airtime and data purchases, and set savings automation.
As stated earlier, Kuda runs a complete online banking experience- all aspects of banking activity from onboarding to customer support are carried out digitally. During the pandemic, many Nigerians who were having problems with their traditional banks found a sanctuary with Kuda, which enabled them to create a bank account with just their smartphone, BVN and ID upload. Kuda continued its model post-pandemic and strengthened its features, which included access to virtual debit cards and an option to request a physical card, which would be delivered to users’ doorsteps.
Kuda also invested heavily in cybersecurity, adopting biometric logins and instant card freezing when reported stolen or due to suspected fraudulent activities and fraud alerts. The fintech platform also paid attention to its customers via its in-app chat customer support. By 2024, Kuda had amassed over 6 million users.
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2. Opay
Opay is another fintech powerhouse. Owned by Opera and launched in 2018, it began as a mobile payments solution before evolving into a leading fintech company in the country.
What made Opay unique post-pandemic is its adoption of a one-stop platform where users can send money, receive money, pay bills and even hail rides (discontinued). These features helped many Nigerians go through their day-to-day activities without touching cash.
What made Opay a leading figure in the online banking scene in Nigeria could be traced to its seamless user interface, friendly homepage and an easy-to-use mobile platform that offers:
- Digital wallet creation in minutes.
- Sending and receiving money with zero or low fees.
- Payment for electricity, internet, DSTV and airtime.
- Swift process of transactions.
The app also invested in infrastructure to ensure the platform remained secure and reliable, even during busy periods. It offers biometric login, fraud monitoring and instant transaction notifications.
As of 2023, Opay processed over 20 million daily transactions and served over 40 million users.
3. Moniepoint
While Moniepoint might not be popular among individual users, it has occupied a dominant space by solving real-world challenges, especially in the online banking space for micro, small, and medium-sized enterprises (MSMES).
Launched by TeamApt as a payment processing platform, Moniepoint transitioned into a business bank after the pandemic, offering digital accounts, loans and point-of-sale (POS) machines. Merchants could open business accounts online, order POS terminals and carry out transactions through their Moniepoint wallets.
Moniepoint’s success can also be traced to its vast agency banking network. As of 2025, over 2 million agents and businesses are using its platform to facilitate payments and cash transactions. Agents perform cash-in and cash-out services, transfers, and utility payments, and even help users open digital accounts, bringing online banking to rural areas.
Moniepoint also focuses on tech-driven financial tools, which can be accessed through its web portal and mobile apps. With these tools, businesses can;
- View real-time sales and transaction history
- Access working capital loans
- Monitor POS performance
- Manage staff accounts and roles
Moniepoint has received many awards and accolades over its years of operation, including an “Outstanding Digital Bank of the Year” award during the Marketing Edge Awards, 2024.
4. ALAT by Wema
Operational in 2017, ALAT is generally believed to be Nigeria’s fully digital bank and has become a benchmark of what traditional banks can achieve by leveraging online banking.
ALAT was initially designed to function as a digital bank, and not a traditional mobile app. Nigerians can open a bank account, verify their identity, fund the account and request a debit card from the comfort of their smartphones. ALAT’s existing infrastructure during the pandemic allowed Wema Bank to serve customers without interruptions.
It also integrated lifestyle offerings, such as access to instant loans, mobile device loans and virtual dollar cards. Biometric login, transaction alerts, and instant card freezing protect the online banking service.
The app also provides in-app support, chat-based assistance and virtual relationships with account managers.
5. Stanbic IBTC
As part of the Standard Bank Group, Stanbic IBTC has emerged as one of the best digital banks in Nigeria, reacting to the shift in consumer behaviour by improving its online banking infrastructure and launching products that support inclusion, convenience and speed.
The bank took a multi-pronged approach to online banking by adopting internet banking, mobile banking and WhatsApp banking through Sami. Sami is an AI-powered chatbot accessible through WhatsApp, web and mobile- it helps users check account balances, transfer funds, pay bills, and get instant help while navigating their bank tools.
Stanbic introduced “ease wallet” to reach more users, an online banking solution that allows users to open a wallet with just a phone number. It supports money transfers, bill payments and savings without requiring users to visit a physical branch.
