Thanks to technological advancements and online data security, confidence in online banking has increased tremendously in Nigeria. People are opening online banking accounts and ditching their traditional bank accounts to enjoy seamless, affordable, and secure banking services from digital banks.
Online banking defines convenience clearly in the way most Nigerians want it. From opening an account to making transactions and managing your money and investments, online banks are giving traditional banks a run for their money.
However, before opening an online bank account, read this article to understand all you need to know about opening an online bank account.
What is an Online Bank Account?
An online bank account is a type of account that is managed entirely online. This means you can open and manage your account through a website or mobile application without visiting a physical bank branch.
With an online bank account, you can perform the same activities as someone with a traditional bank account. You can make deposits and withdrawals, pay bills, transfer funds, and check your account balance with your phone and internet connection.
Online banks are becoming quite popular in the Nigerian banking industry due to their numerous benefits.
Benefits of Online Banking
Opening an online bank account has numerous benefits, such as convenience, time-saving, security, and cost-effectiveness.
1. Convenience
The time has passed when you must visit your bank to perform the simplest transactions, such as checking your account balance, transferring, or filing a complaint. You can perform all banking transactions with your online account without leaving your house.
2. Time-Saving
With an online bank account, you can channel the time you’d have spent visiting a physical bank to complete a transaction or sort out a problem into a more productive venture. This helps you achieve more at the end of the day because you wouldn’t have to postpone important tasks for a trivial yet urgent bank issue.
3. Security
Online banks use various security measures to safeguard customers’ data, such as encryption, firewalls, and multi-factor authentication. It’s also easier for customers to monitor activities on their online bank account, which allows them to detect fraudulent activities and report them quickly. This is something most traditional banks can’t guarantee you.
4. Cost-effectiveness
Most online banks are known for their free banking services. Customers can make transfers and other bill payments at no extra charge. This is one of the major complaints of traditional bank customers, as they’re billed for SMS, ATM maintenance, and many other unknown transactions.
Online banks have numerous benefits over traditional banks, but that’s only when you choose the right online bank.
How to Choose the Right Online Bank
Here are crucial things you must do to choose the right online bank for you:
1. Research the Banks and Compare their Services
Before choosing an online bank, the first thing to do is research the different available banks and compare their services. Though their services are similar, a few things make them stand out.
While Mintyn is known for its business support services and for being the best online bank for international payments, Alat and V Bank are known for their USSD banking services.
Therefore, before settling for a bank, compare its services with other banks and determine which offers you the best service.
2. Assess Each Bank’s Reputation and Reliability
Reputation and reliability are vital qualities every digital bank should possess. Therefore, before you select an online bank, inquire about how they handle customers’ funds. Even more, how a bank attends to customer complaints and makes an effort to resolve them should tell you how reliable they can be in times of need.
3. Examine Fees and Interest Rates
While most online banks offer free banking services, there may be other hidden fees you need to examine. If they offer you an ATM for free, ask them about their charges for card maintenance and withdrawals.
Furthermore, digital banks are known for their high-yielding savings accounts. Examining each bank’s interest rates on your savings will help you better choose a wealth-building banking partner.
Requirements for Opening an Online Bank Account
So, what do you need to open an online bank account? The requirements for opening an online bank account differ from what traditional banks demand.
1. Knowledge of the Account You Intend to Open
To open an account with an online bank, you need to know the type of account you need. Do you need personal savings or a current or corporate account for your business? This will help determine the information you’ll provide to the bank.
2. Your Personal Information
For personal savings or current accounts, most online banks need only your name, phone number, and other personal information to open an account for you. Mintyn has an option for you to open an account with your bank verification number (BVN). You can also decide to open an account without it.
If you’re opening a business account with Mintyn, you must submit a means of identification, your business incorporation documents (CAC document), your BVN, and your tax identification number (TIN).
Now that you know the benefits of an online bank account and its requirements, let’s look at how you can open one.
How to Open an Online Bank Account
Here’s a step-by-step process to open an online bank account:
1. Download the Application
The first step in opening an online bank account is to download the mobile application of your chosen bank. You can get this from Google Play Store if you’re an android user or the App store if you use an iPhone.
2. Sign Up and Provide the Required Information
Once you’ve downloaded the app, sign up and provide the required information. For Mintyn, you must only provide your email, name, phone number, and bank verification number (optional).
3. Verify Your Identity
After signing up and providing the required information, the bank will require you to verify your identity. To verify your identity, you only need to upload a valid identity card, preferably your national ID card, voter’s card, or driver’s license.
4. Set Up Online Banking Services
Once you’ve verified your identity, you can access more banking services on your mobile app. In Mintyn, for instance, you can receive any amount from any bank in Nigeria and send as much as 5 million naira to family and friends on your Mintyn App.
You can also set up other banking services and begin enjoying premium services on the Mintyn App.
Open an Online Bank Account with Mintyn
At Mintyn, we make banking easy, accessible, and fun for our customers by providing free, premium banking services. With the Mintyn app, you have a full bank at your fingertips. This is evident in how easy online payments are with Mintyn. You can easily make international payments with your Mintyn debit, virtual, or gift card.
Very few digital banks support your business the way Mintyn does. With your Mintyn app, you can easily register your business with the Corporate Affairs Commission (CAC), apply for a Tax Identification Number (TIN), and run a professional business.
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