Why Nigerians still prefer traditional Banks over Fintechs despite convenience

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Despite the convenience and accessibility offered by Fintechs, many Nigerians continue to prefer the perceived safety and accountability of traditional banks. According to Fola Adebayo, a fintech analyst at TechFront Advisory, “Fintechs have helped improve financial inclusion, no doubt. But the trust gap remains. Nigerians want more than convenience—they want assurance. Any hiccup involving people’s money can quickly lead to panic and distrust.”

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Industry observers argue that building user trust should be a top priority for Fintech firms. This includes strengthening fraud prevention protocols, ensuring regulatory compliance, and establishing efficient customer redress systems. Adebayo noted that traditional banks, despite their imperfections, are seen as stable and reliable, providing comfort in knowing that issues can be resolved in-person.

An Opay official acknowledged the challenges, stating that the company is “investing heavily in fraud detection, customer service, and system reliability. Our goal is to offer not just convenience, but dependability that rivals traditional banks.” However, industry analysts believe that these assurances may not be enough in the short term

Banking consultant Adetola Johnson emphasized that consumer confidence must be earned through consistent, incident-free service. “Until Fintech platforms can demonstrate strong security and responsiveness at all times,” Johnson said, “most Nigerians will continue to reserve large transactions for the banks they’ve known and trusted for years.”

Ultimately, the challenge for Fintech firms in Nigeria is not just technological, but psychological. Winning over cautious users will require more than innovative apps and quick transactions; it will require building trust. Experts agree that trust is the real battleground in the digital finance sector.

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