In the wake of a growing trend, Nigerian banks are revolutionizing the way customers convert foreign currencies to naira by launching mobile applications (apps) and internet banking platforms.
This development is causing a stir in the black market trading community as the convenience and competitive rates offered by these digital services challenge the traditional methods of currency exchange.
One of the leading banks in this digital transformation is Ecobank, which provides a mobile app enabling customers to convert their dollars and other foreign currencies to naira. However, there is a daily limit of $25,000 for this service.
With just a few taps on their smartphones, customers can log in to the Ecobank Mobile App, click on the transfer option, and convert their euros, pounds, or dollars to naira, receiving instant value and competitive rates.
Zenith Bank, on the other hand, introduced an FX conversion platform called ‘FX conversions just got eazy’ on its internet banking platform. Users can seamlessly convert their dollars to naira by logging in to their Zenith Bank internet banking accounts, navigating to the forex section, and selecting the ‘Convert FX to Naira’ option.
However, this service is subject to a daily conversion limit of $10,000, in compliance with regulatory requirements.
While Standard Chartered Bank has already been offering USD to naira conversion, it is limited to the official exchange rate. Despite the availability of this feature, customers were reluctant to utilize it when the parallel market offered more favorable rates.
Standard Chartered Bank also provides 24/7 conversion services for various foreign currencies to fulfill customers’ FX needs.
In a bid to stay ahead, Access Bank and Fidelity Bank are also in the process of creating their own foreign currency conversion platforms, set to be introduced to the market soon. Access Bank, however, currently offers a product known as Glocurrency, allowing individuals residing in the UK, Europe, and Canada to send funds to Nigeria.
Funds can be received directly into an Access Bank USD account or collected as cash from any of their 500+ branches nationwide.
Stanbic IBTC provides Diaspora banking, catering specifically to Nigerians living abroad. This specialized offering enables them to send money back home, manage finances in Nigeria, save for purchasing property, invest in local denominated wealth instruments, and execute various projects.
Another major player in the banking sector, Guaranty Trust Holding Company, introduced a new foreign exchange product that allows customers to instantly convert dollars to naira through their internet banking platform.
This innovation has caused disruption in the black market, with customers now having the option to convert up to $50,000 to naira daily using GTBank’s digital service.
The introduction of these mobile apps and internet banking platforms for foreign currency conversion signifies a shift towards greater convenience and transparency in Nigeria’s banking sector.
As more banks embrace digital solutions, it is expected that black market trading will face increasing challenges, ultimately benefiting customers with more accessible and competitive exchange rates.