Neobanks vs. Traditional Banks in Nigeria: Who is winning?

Neobanks vs Traditional Banks: Neobanks in Nigeria, such as Kuda and Moniepoint, have gained significant traction with millions of downloads and users due to low fees and rapid onboarding, while traditional banks like First Bank maintain a strong presence through physical branches and established trust among customers.

Trust and Security Concerns: Despite the rapid growth of neobanks, they face challenges regarding consumer trust and security, with only 41% of Nigerians trusting digital-only banks compared to 72% for traditional banks; however, both sectors are expected to evolve, potentially leading to a hybrid banking model that combines digital innovation with traditional stability.