Due to the higher interest rates offered by digital banks, many young Nigerians prefer them over the traditional banking system.
The institutions provide convenience and, in the opinion of their clients, take care of the majority of their financial problems.
According to an NIBSS analysis, the number of mobile transactions increased from 67 million in the first four months of 2022 to 153 million in the first four months of 2022, a 128.4% increase.
Experts noted that due to the simplicity of conducting transactions and the interest rates they offer, young folks would always prefer digital banking to traditional banking.
The use of digital banking is a global trend, according to Dr. Olalekan Aworinde, an economist at Pan Atlantic University, who was speaking to The PUNCH.
According to Aworinde, the primary factor driving Nigerians or young people to switch from the country’s established financial system to digital banking is the time it saves.
It saves a ton of time, he remarked. In addition to the time it saves, you also find that transactions are finished.
Professor Akpan Ekpo, a second economist with the University of Uyo, stated that the reason for the increase or continued use is that it is simpler to access. There isn’t any bureaucracy involved in filling out forms at the bank or having a ton of questions asked of you in person.
Ekpo issued a warning nonetheless, stating that young people “
should be using digital banks that are registered by the Central Bank of Nigeria because there are many digital banks on the internet but are not registered by CBN. These pose a risk.