A virtual bank account in Nigeria is a digital banking service that works like a regular bank account but is online only, with no physical branches. So if you are interested in getting one for your business, I will show you how to open a virtual bank account in Nigeria.
It’s not a foreign account but Nigerians can use it to receive money from local and international sources. That’s why it’s popular for freelancers, remote workers, and businesses that deal with overseas clients.
Unlike regular bank accounts, virtual accounts are managed through mobile apps or web platforms.
They have basic features like receiving money, sending money, and checking balances.
Some virtual accounts even have virtual debit cards for online transactions.
The rise of virtual bank accounts in Nigeria is as a result of the growth of fintech and the need for fast and borderless financial transactions.
With more people working online and doing business globally, virtual accounts make it easy to receive international payments without the delay and fees that comes with traditional banking.
Virtual bank accounts are generally safe to use as most providers have strong security measures like encryption and two-factor authentication.
But you should choose a trusted provider licensed by the Central Bank of Nigeria (CBN) to ensure your money and personal information is safe.
Pros are convenience, lower transaction cost and easy access to international payments. These accounts have become a practical solution for modern day financial needs especially in Nigeria’s digital economy.
In this article, we’ll show you how to open a virtual bank account in Nigeria, the benefits and why it’s good for many people.
How to Open a Virtual Bank Account in Nigeria
Opening a virtual bank account in Nigeria is easy and simple. It’s just a few steps and the best part is you can do it from the comfort of your home, office or anywhere else.
Virtual accounts are becoming popular in Nigeria, you can manage your finances, avoid going to physical banks and even reduce transaction fees.
Let’s get started.
1. Pick Your Virtual Bank
The first step to opening a virtual bank account in Nigeria is to pick the right virtual bank for you.
There are many to choose from so pick one that suits your financial goals whether for personal use or for business. Some popular virtual banks in Nigeria are ALAT, Kuda and Changera.
When picking a virtual bank consider the fees, features they offer and if they have good customer support. Some virtual banks offer free account creation while others may charge a small fee.
Also check if the bank has a mobile app so you can manage your account from your phone.
2. Download the App or Visit the Website
Once you’ve picked a virtual bank, the next step is to download their app or visit their website. Most virtual banks like ALAT or Kuda have easy to use apps that you can get from the App Store (for iOS users) or Google Play (for Android users).
You can also create your virtual account directly from the bank’s website.
But using a mobile app is more convenient since you can do all banking activities from your phone including making payments, transferring money and checking your account balance.
3. Sign Up and Verify
After downloading the app or visiting the website, you will need to sign up by creating an account. This will require you to provide some personal information such as your full name, email address, phone number and date of birth.
To secure your account, you will also need to verify your identity. This is to ensure the account is yours and to protect your financial information. For verification you will need to upload:
- A valid government issued ID (e.g. National ID, Driver’s License or Passport).
- Proof of address (e.g. utility bill or lease agreement).
- Sometimes you may be asked for your Bank Verification Number (BVN) or National Identification Number (NIN).
After uploading the documents, the bank will review and verify your identity. This should take a few minutes and then you can proceed.
4. Create Your Virtual Account
Now that you’ve been verified, you can go ahead and create your virtual account. This is where you’ll set up your actual bank account.
Depending on the virtual bank you’ve chosen, you might be able to create a personal or business account. Just follow the app or website’s instructions to create your account.
For example, on the ALAT mobile banking app, after signing up, you can go to the “wallets” section, where you’ll be asked to create your virtual account. It’s easy, just follow the prompts.
Once you’ve created your virtual account, you can use it right away for receiving payments, making transfers or paying for services.
It’s a convenient way to manage all your financial needs without having to go to a bank branch.
Create ALAT Account
- Download ALAT App: Go to Google Play Store or Apple App Store and download ALAT app on your phone.
- Sign Up: Open the app and click on “Sign Up” to get started.
- Fill in Your Details: Enter your name, email address, phone number and other required personal info.
- Create Password: Choose a strong password.
- Verify Email or Phone: Enter the code sent to your email or phone.
- Add BVN: Enter your Bank Verification Number (BVN) to link your identity to the account.
- Upload ID: Take a photo of your National ID, driver’s license or voter’s card and upload it for verification.
- Complete Profile: Fill in any other required info, like your address or profile picture.
- Start Using Your Account: Once approved, you can start receiving and sending money, paying bills and more.
Create Kuda Account
- Download Kuda App: Install Kuda app from Google Play Store or Apple App Store.
- Tap “Create Account“: Open the app and click on create account.
- Fill in Your Details: Enter your full name, phone number and email.
- Verify Phone: Enter the code sent to your phone.
- Set Password: Choose a strong password.
- Add BVN: Enter your BVN to verify your identity and activate full account features.
- Upload ID: Take a clear photo of your National ID, voter’s card or any accepted ID and upload.
- Start Using: Once approved, you can start using your account.
- Complete:
5. Fund Your Virtual Account
After creating your virtual account, fund it. You can deposit money into your virtual account via bank transfer or other payment methods.
Some virtual banks allow you to deposit from other bank accounts, while others allow you to fund your account via mobile money or third party apps.
One of the best things about virtual bank account is it has lower transaction fees compared to traditional banks.
You won’t have to pay high fees for each transaction or withdrawal. Many virtual banks also don’t charge for deposits and withdrawals, so it’s a cost savings way to manage your money.
6. Start Using Your Virtual Account
Once funded, you can use your virtual account right away. You can pay bills (cable or data), buy airtime, transfer to other bank accounts.
Virtual bank accounts are also good for businesses as you can receive payments from clients and pay employees easily.
If you’ve linked a debit card to your virtual account, you can also use it for in-store purchases, online shopping or ATM withdrawals. Virtual accounts are safe and secure and with multi-factor authentication, your funds are protected.
Why a Virtual Bank Account?
Virtual bank accounts are better than traditional bank accounts in a fast paced cashless Nigeria. Here are a few reasons why you should choose a virtual account:
Convenience
You can do banking anywhere and anytime as long as you have an internet connection. No need to visit a bank branch, save time and energy.
Lower Transaction Fees
Many virtual banks have lower transaction fees than traditional banks.
Virtual accounts enables businesses and individuals to make cost effective transactions which is very useful for people with frequent financial activities.
Security
Virtual accounts uses high level encryption to protect your financial data. Many banks also have additional security features like biometric login or multi factor authentication that makes it harder for hackers to get into your account.
Speed
Virtual accounts processes transactions faster, your payments and transfers are completed way faster than traditional bank accounts. Good for anyone that needs to send or receive money urgently.
Virtual Bank Account Tips
While virtual bank accounts are convenient and secure, here are a few things to note:
- Choose a Trusted Virtual Bank: Always choose a virtual bank that is licensed and regulated. Make sure they have good customer service and security.
- Secure Your Account: Use strong passwords, enable two factor authentication and be cautious of phishing or suspicious emails.
- Update: Keep your app or website updated to have access to the latest features and security updates.
Conclusion
Opening a virtual bank account in Nigeria is simple, fast and secure.
Whether you want to manage your personal finances or run a business, virtual accounts is the way to go for all your financial needs without the stress of traditional banking.
With lower fees, faster transactions and ability to manage your finances anywhere and anytime, virtual bank accounts is becoming the go to for many Nigerians.
So if you want to make banking easier, faster and more convenient, open a virtual bank account today. It’s just a few steps and you’ll have access to all the features and benefits.
FAQs
What is a virtual bank account?
A virtual bank account is an online bank account you can open and use entirely online. You don’t need to visit a bank branch. You can send, receive and store money just like a regular account.
Many people use it for local and international transactions because it’s fast and easy to manage through a mobile app or website.
Who can open a virtual bank account in Nigeria?
Anyone in Nigeria can open a virtual bank account if you meet the provider’s requirements. Most accounts are open to individuals with a valid ID (like a National ID card or passport) and a phone number. Some may ask for additional documents like proof of address but the process is usually easy.
Is a virtual bank account the same as a foreign account?
No. A virtual account isn’t a foreign account but it can receive payments from abroad. It’s designed for both local and international transactions so it’s useful for freelancers, online workers and businesses that deal with clients outside Nigeria.
Are virtual bank accounts safe to use?
Yes, they are safe if you use a trusted provider licensed by the Central Bank of Nigeria (CBN). They often use advanced security features like encryption and two-factor authentication to protect your money and data.
What can I do with a virtual bank account?
You can send and receive payments, pay bills, shop online and sometimes even get virtual debit cards. It’s good for those who need flexibility with their finances.
Do I need a smartphone to open one?
Yes, in most cases. Since virtual accounts are managed through apps or websites, a smartphone or computer with internet is needed. But some platforms may allow you to do basic actions using USSD codes on feature phones.
