Nigerians Losing Trust in Banks: Fintech Platforms Like OPay and PalmPay Step In Where Banks Fail

 

For many Nigerians today, dealing with traditional banks has become a full blown source of stress. From failed transactions to long queues, delayed reversals, and poor customer service, the nation’s banking system is leaving citizens frustrated, exhausted, and in search of alternatives.

Despite claims of modernization and digital transformation by commercial banks, the day-to-day experience of the average Nigerian tells a different story. People are forced to wait days sometimes weeks for failed transactions to be reversed. Transfer delays, ATM card issues, and unresponsive customer service have become so common that users no longer see them as isolated problems, but as the norm.

“I Only Use My Bank as a Salary Channel” - Nigerians Speak Out

Chika Obi, a small business owner in Anambra, shared her frustration: “Every time I try to make a payment, it either delays or fails. But the bank has already deducted my money. I’ve reported it so many times, and all I hear is ‘we’re working on it.’ OPay doesn’t treat me like that.”

Chika isn’t alone. Many Nigerians now only use their bank accounts to receive salaries or major payments, then immediately transfer funds to fintech platforms like OPay, PalmPay, or Moniepoint, where transactions are smoother, faster, and customer support is responsive.

Fintech to the Rescue

In contrast, fintech companies are thriving mainly because they’re doing what traditional banks are failing to do: delivering consistent, hassle free financial services.

Also Read: Why Opay, PalmPay And Moniepoint Are Beating Traditional Banks in Nigeria

Platforms like OPay and PalmPay allow instant transfers, quick airtime purchases, bill payments, and even POS withdrawals without the drama that’s become common with banks. Their apps are easy to use, and more importantly, customer complaints are addressed within minutes, not days.

Most importantly, these platforms work even during network congestion or public holidays when banks usually go offline. It’s no surprise that many POS agents and shop owners now prefer using OPay or PalmPay terminals over bank provided options.

Is the Banking System Failing Its Customers?

While fintech platforms are booming, the performance of many commercial banks is deteriorating. Failed login attempts, apps that constantly crash, unresolved debit issues, and slow customer care responses are pushing people away.

Experts believe this could be a wake-up call for Nigeria’s banking sector.

According to financial analyst Adeola Makinde, “Banks are losing public trust. If they don’t adapt quickly and put customer experience first, they risk becoming obsolete for everyday Nigerians. The fintechs have shown what’s possible when customer satisfaction is prioritized.”

What Needs to Change?

Nigerians are not asking for too much just reliable banking. They want simple things: that their transfers go through, that their money isn’t ‘hanging,’ and that they can get support when needed. Until traditional banks can guarantee this, more customers will continue migrating to fintech alternatives.

Banks must revamp their infrastructure, invest in better digital platforms, and most importantly listen to their customers. If not, they may find themselves playing catch-up in an industry that’s rapidly evolving beyond their control.

Banking shouldn’t be a burden. But for many Nigerians, it still is. As fintechs continue to provide fast, affordable, and reliable services, it’s clear: the future of finance in Nigeria belongs to those who can earn and keep the people’s trust.