FINTECH

Virtual Accounts in Nigeria: All You Need to Know

Published

3 months ago

Virtual Accounts in Nigeria: All You Need to Know

There is a business person somewhere in Nigeria still scared to deposit money in Nigeria’s traditional banks. Only few can blame such a person; especially with the bottlenecks involved in opening bank accounts, unreasonable bank charges and poor customer care handling of monetary issues. The pandemic situation has not made it easier at all. Therefore, people have to adapt knowing Covid-19 has come stay even if there have been ground-breaking developments with vaccines and cure for the pandemic. The fact still remains, something has to change and that is where virtual banks come in. There is nothing better than convenience and knowing it is enduring as well as sustainable. Virtual banking promises you far more than convenience in ways the banking establishment in Nigeria has never seen.

Virtual Accounts in Nigeria All You Need to Know

If you have tried sending money abroad from anywhere in Nigeria, you would understand how difficult it can be. Even with a domiciliary account, the inflow and outflow policies coupled with exorbitant onshore and offshore charges can be frustrating. Virtual banking allows for easy access and movement of monies to any part of the world. Virtual accounts are foreign currency accounts that are operated like local bank accounts. It is true they are like domiciliary accounts but they are a far extension of it in ways never witnessed before. Gone are the days of waiting long hours in traditional banking halls wanting to carry out financial transactions that should take few minutes. As the name implies, virtual banking involves access to various financial services such as bill payments, making withdrawals and deposits, checking account information, that are offered digitally instead of having to visit a physical banking location.

Virtual Banking: All You Need To Know

TechFunnel gives a rather completely exhaustive guide to everything you need to know as far as virtual banking is concerned and it reads as follows:

Virtual banks operate through 3 simple ways: creating an account, transferring money in, and then transferring money out. Here is how they work?

1. Creating an Account

A virtual bank works when a customer, first of all, opens an account with the virtual bank. This means the individual would have to fill out an online application and make a deposit. The customer can submit the form online or simply print it and mail it.

To make the deposit, the customer would have to transfer money to the bank electronically or send a check via mail. Before concluding this stage, the bank may also request that the customer fax it a copy of their identification.

2. Paying Funds In

One way a virtual bank allows you to deposit money into a virtual account is by having your employer deposit your paycheck directly into the account.

Also, it is possible for you to transfer funds from another bank or a PayPal account into your virtual account. It also works by allowing customers to snail-mail deposits to the virtual bank.

Conclusively, some virtual banks may operate by allowing you to take a smartphone picture of the deposit to carry out a transaction. Even if your virtual bank does not provide this feature, PayPal does. Thus, you can transfer money from your PayPal account.

3. Paying Funds Out

Just as with a traditional bank, virtual banks also issue debit cards, and a customer is also allowed to order checks. With these provisions, you can buy products as you would normally do. Additionally, virtual banks provide the option of paying bills online.

Although virtual banks do not have their own ATMs, they enable the operation of cash withdrawal by allowing you to use an ATM machine that is owned by another bank. However, the bank in charge of the ATM will most likely charge you for ATM withdrawal fees, although virtual banks won’t. It is however possible that your virtual bank may reimburse these charges.

Importance of Virtual Banking

1. Guaranteed Security

One of its importance today is that security is assured. This is large as a result of the fact that banks all around the world have begun to offer online banking as one of their major services.

Virtual banks utilize a highly secure platform that enables the encryption of devices to guarantee that all customer data is secured. With the absence of and protection from the security breach, you are ultimately shielded from online scams and account hacking.

2. Reliability

It can always be relied upon even if you are minutes away from the deadline to pay your bill and avoiding being levied a penalty. From the comfort of your home, you can make online transactions anytime and with ease. What’s more, is that you do not have to go through the hassles of being physically present for a huge amount of transactions. It enables the safe transfer of funds without disappointments.

3. No Hidden Charges

It is quite normal to assume that with the convenience that it offers, there would be some hidden charges associated with carrying out online transactions.

However, there are zero hidden charges! When you make an online transaction, you are only charged a nominal transaction convenience and the rest is handled by your bank.

4. A Bank in Your Home

Indeed one of the importance is the fact that convenience is guaranteed. They bring the banking hall right to the middle of your home. This means you no longer have to wait in long queues at the bank. Whether you are stuck in a traffic jam or you are in the middle of some urgent work, you can always finalize transactions on the go.

Consequently, it makes it easier for you to confirm your balance before making cashless purchases so as to avoid embarrassment if your account does not have sufficient funds to purchase everything on your shopping list.

5. Manage Your Accounts Up Close

Finally, another essential feature is the ability to budget and monitor your account via access to mobile banking and an efficient budgeting application. It becomes simpler to monitor real-time expenses while making purchases or calculating your savings and expenses for the month.

That is, after making transactions, you do not have to wait for the day of the month to end before you check your transaction logs.

Forms of Virtual Banking

Below are different forms:

ATMs
RTGS
Centralized fund management schemes(1)
The electronic clearing service scheme
Use of magnetic ink character recognition code (MICR)
An electronic fund transfer scheme
Computerized settlement of clearing transactions.

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Advantages of a Virtual Banking

1. 24/7 Access to your account and bank information

As long as you are connected to the internet, online banks are accessible all day long. In fact, some advanced virtual banks raise the competition bar by providing you with 24/7 access to a real-life customer service agent.

This becomes very beneficial in case you do not have access to the internet, or if you feel more comfortable interacting with a human, instead of a programmed computer algorithm.

2. Faster Speed and Efficiency

Recall that with the traditional brick-and-mortar banking institutions, you have to go through the time-consuming stress of waiting in line to perform almost every banking transaction such as applying for a loan or transferring funds. However, this is not the case.

Here, speed and efficiency is an advantage on your side as you do not have to wait. All you have to do is log in and access your online account, and you can perform almost every banking transaction (request a new credit card, lodge a complaint, etc.) without having to walk down to a bank and wait in line.

3. Online Payment of Bill

The ability to pay bills online is one of the awesome advantages of online banking. In traditional banking, you have to write checks or fill out forms to pay bills. However, with virtual banking, all it takes is a simple click after you set up your accounts on your online bank.

In fact, you can even automate the payments of your bills with a set time duration. With this feature of online bill payment, it is easy to monitor your accounts from one central source and to oversee the payments into and out of your account.

4. Cost of Operation Is Cost-effective

Traditional banks have to pay for expenses that include rent, electricity, landscaping, janitorial services, etc. However, virtual banks do not have to pay for these things and that means they can pass these savings along to their customers.

Because they have a relatively reduced cost of operation, virtual banks tend to charge lower fees than traditional banks. This is why there are a lot of virtual banks that provide free online checking account with zero deposit, along with other no-fee bank accounts, like IRAs. Some virtual banks enable free checking and zero minimum balance.

This is particularly useful if you are concerned that your application for an account may be refused because of bad credit. You may be allowed to create a bank account online free of charge. There is no need for a credit check, but there might however be ongoing fees.

5. High-Interest Rates

As a result of low overhead, virtual banks usually offer the best interest rates, regardless of if you want a certificate of deposit, a high girl checking account, or deposit accounts with high interest, like a money market account.

Other advantages include:

- The flexibility of its system
- Time-saving
- They are sensitive to the environment
- Easy occupation and user-friendliness
- Digital signs for security
- The ability to check data about transactions at current and retrospective ways

Disadvantages of Virtual Banking

1. Security Threats

As expected, every innovation that is based on IT faces the issue of security. This is why some customers are still skeptical about it. If someone gains illegal access to your account by hacking or hijacking your password or log-in details, your account (and of course, money) is at the risk of theft.

Also, the fact that virtual banks do not have a physical presence makes it difficult for people to trust them. If the website crashes or your digital identity is stolen, what happens to your money?

2. Inefficiency Execution of Complex Transactions

Virtual banks are good for carrying out simple banking operations like transferring funds between accounts and paying bills online. However, if your virtual bank does not have a global outlook, it may not be able to efficiently execute global transaction functions like sending payments to numerous currencies of different countries all over the world.

In fact, it is impossible for virtual banks without a physical presence to carry out the services of notary public since it requires a physical visit, and it is vital for essential financial activities like purchasing a home.

3. Inability to Create Relations with The Bank

An edge that traditional brick-and-mortar banks have over virtual banks is the fact that a customer can easily create familiarity and relations with a banker. However, this becomes nearly impossible.

This is because virtual banks typically hand you off to an anonymous customer service agent who will most likely be unable to differentiate you from the next customer.

Other disadvantages are:

- The mobility of banking websites
- Cost of access
- The difficulty that may be attached to learning the online processes
- Skepticism about the validity and effectiveness of the operations

Conclusion

Make no mistakes, online banking and virtual banking are two different phenomena. Most people use both terms interchangeably but they are considerably distinct in their unique ways. Online banking can be created and owned by a traditional bank. Hence, it can be operated like any normal local bank account as long as you have gadgets that are permissible to internet connection. Meanwhile, virtual banking is created and operated by an individual with no interference with any local bank. That said, virtual banking gives more power to an individual. This means that these individuals have the coinage to do their banking in whatever way befitting of their informed choices and preferences. Thus, virtual banking eliminates “the Abacha grip” of most traditional banks in Nigeria.

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FINTECH

How the Logistics Sector Can Improve On Payment Collection In Nigeria

Published

5 hours ago

Christopher

How the Logistics Sector Can Improve On Payment Collection In Nigeria

The logistics sector in Nigeria continues to gather momentum, especially in the urban centers that are densely populated with people of varying demands. This business is a critical part of the supply chain as it collects, transports, and delivers products to customers. Hence making it a lucrative venture in Nigeria.

However, the advent of technology has amplified the logistics sector as it now tends to leverage digital tools to attract customers seeking to employ the service for product delivery to different parts of the country. This has increased online presence through websites and social media platforms like Instagram, Facebook, and X (Twitter).

How the Logistics Sector Can Improve On Payment Collection In Nigeria

Notably, the logistics sector already has a synergy with other sectors like the e-commerce industry, which is primarily populated by small and medium-scale enterprises (SMEs).

Therefore, its relevance becomes germane to fostering the customer experience of any business. This is because a timely delivery of products is the hallmark of any logistic business.

However, payment structure plays a significant role in the effectiveness and efficiency of the business as this propels it to pick up products and get them delivered to people. So, product delivery will always be delayed when a firm payment agreement between an SME and the logistic business is not met. While this can affect the reputation of the SME, it can also reduce the patronage of such logistics.

In light of bolstering the operation of the logistics sector in Nigeria, it is imperative to employ payment methods that are easy and simple to use such that it does not lead to delays that hamper related businesses. Therefore, Fincra has put in place sustainable payment innovation to boost the growth of the logistics business in the country.

Notable as one of the leading fintech companies in Nigeria, Fincra is a payment gateway committed to improving the payment strategy of different sectors in Nigeria, including the logistics business.

Ways Logistics Sector Can Collect Payments On Fincra

1. Virtual Account

Logistics businesses can create a naira (NGN) virtual account on Fincra, which enables them to collect payments from clients across Nigeria. This virtual account can be temporary in the instance of a one-off transaction or a permanent one, which can be used to collect payments like the local bank account.

This Fincra virtual account allows easy reconciliation and effective payment management for businesses and logistics.

2. Payment Link

There is a Fincra payment link that logistics businesses can quickly generate to collect payments from clients. This link can be customized and shared across various messaging tools – social media platforms and text messages. It includes all the necessary information, including the account details of the logistics business for their clients to make payment via bank transfer or cards.

3. E-wallet

This is using the Fincra wallet to collect payment by the logistic business. However, it is only conditioned that the other client has a Fincra account to facilitate this transaction. This is another effective way of collecting payments because it is simple and instant.

Therefore, logistics may need to create a Fincra account and encourage their clients to create the account to enable a seamless completion of payment without delay. This will be a win-win situation for both businesses.

4. Card Payment

This involves the use of credit or debit cards to make payments. As such, there is a Fincra POS terminal that logistics businesses can employ to collect card payments from their clients. This is a mode of agency banking designed by Fincra to increase the coverage for the payment system in Nigeria.

It facilitates an in-person transaction that ensures quick completion of payments between the logistics business and its clients.

Conclusion

Nigeria’s logistics sector is a booming economy, with many entities foraying onto the landscape. But as this sector continues to become competitive to stay afloat, it is important to adopt better payment strategies that would push the business to the fore of attracting more clients.

Fincra provides different options to collect payments for logistics businesses. You can take advantage of that when you create a Fincra account now.

FINTECH

How E-commerce Businesses Can Build Trust With Fincra Payment Collection Methods In Nigeria

Published

6 hours ago

Christopher

How E-commerce Businesses Can Build Trust With Fincra Payment Collection Methods In Nigeria

E-commerce is a burgeoning sector in Nigeria, with small and medium-scale businesses continuously entering the market to attract teeming online users who are potential customers. This can be owed to the widespread adoption of technology, which businesses are leveraging to grow sales.

Today, there is a proliferation of e-commerce platforms or stores across Nigeria designed to meet the purchasing needs of the larger Nigerian population. This has given rise to a competitive market with businesses adopting strategies that would give them a better position of generating and retaining leads (customers) in the dynamic business landscape.

There are many strategies e-commerce businesses employ in Nigeria and worldwide – from a user-friendly online storefront that is easy to navigate to a payment system at checkout. These are some significant factors customers consider to inform their buying decisions on an e-commerce platform.

We can not overemphasize the role of payment collection in e-commerce, as customers are always keen on ensuring that a system makes their payment at checkout seamless. This reinforces customers’ trust and confidence in completing their purchases on the e-commerce platform.

But, while bank transfers, card payments, and e-wallets are currently the popular methods of collecting payments in Nigeria, e-commerce businesses can harness different payment options on Fincra.

Payment Collection Methods On Fincra For E-commerce Businesses

Fincra is a leading fintech company in Nigeria that has become a trusted and reliable payment gateway for various business niches. As such, e-commerce businesses can use the payment options on Fincra or, better still, integrate with the payment API on the platform to ease the payment process on their respective platforms.

However, you can directly collect payments from customers across Nigeria on your Fincra account. You can achieve this with payment options that include:

Virtual account: this is a virtual naira account on Fincra that enables you to collect payment through bank transfers from your customers.

Payment link: there is a Fincra Payment Link, which is customizable – enabling you to share account details with product descriptions with customers on social or messaging platforms.

Direct API: this is a fully optimized payment system that provides a class array of different options on your e-commerce platform.

Checkout: a Fincra checkout can be tailored to your e-commerce platform, supporting your customers’ devices to provide an improved experience for your customers.

By and large, all these payment collection methods on Fincra are important to the payment strategy of any e-commerce business in Nigeria. They provide your company with a positive outlook to gain trust and confidence.

Benefits Of Payment Collection On Fincra By E-commerce Businesses

1. Low Fee

The fee is relatively low when you collect payments on the Fincra. It provides one of the industry’s best pricing such that you save more for your business while using the platform. This is with the understanding that the sole aim of business is to make profits. Therefore, Fincra is committed to maximizing your gains with its low fee structure on the platform.

2. Advanced Security

Fincra employs a state-of-the-art security system to keep your funds safe when collecting payments on the platform. It complies with industry standards to keep your financial information and funds from unauthorized access. Therefore, Fincra protects you from identity theft that could lead to a possible loss of funds.

3. Multiple Payment Methods

As a reputable payment gateway in Nigeria, e-commerce businesses can collect payment via different options that best suit them on Fincra. These are naira (NGN) virtual accounts, payment links, checkout, and direct API. Therefore, these make your business more trusted as you gain more customers.

Conclusion

People continue to use e-commerce platforms to buy their preferred products in Nigeria, even as others also offer a range of services. But the integral part of e-commerce is the payment system that is the best fit for customers. That is why these businesses need to use the various options on Fincra to collect payments in Nigeria.

You can create a Fincra account now to use different payment methods for your e-commerce business.

FINTECH

AAS TOKEN (AAST): The Power of Early Cryptocurrency Investment

Published

6 hours ago

Christopher

AAS TOKEN (AAST): The Power of Early Cryptocurrency Investment

In the dynamic landscape of finance, one phenomenon has consistently captured the attention of risk-takers and forward thinkers alike — the world of cryptocurrency. Stories of astronomical gains and heartbreaking losses fill the digital realm, but amidst this volatility, a strategy stands out: investing in cryptocurrency at launch. This article delves into the advantages of being an early adopter, exploring the potential for substantial profits and the unique benefits that come with it.

AAS TOKEN AAST The Power of Early Cryptocurrency Investment

The First Mover Advantage: The undeniable perk of diving into a new cryptocurrency at launch is the first-mover advantage. Early investors gain exclusive access to potential gains before the wider market catches on. Securing tokens at lower prices paves the way for significant profits as the project gains traction and demand. This early entry positions investors at the forefront of groundbreaking digital currencies, offering a unique edge in the volatile crypto market.

Discovering Hidden Gems: Investing in cryptocurrency at launch opens the door to discovering hidden gems amidst the sea of digital assets. While established players like Bitcoin and Ethereum dominate headlines, emerging projects can provide unique features and innovative solutions to real-life problems. Being an early investor allows individuals to identify and capitalize on the next big thing before it becomes common knowledge, potentially reaping substantial rewards.

Timing the Market Waves: Timing is crucial in the cryptocurrency market, and investing at launch provides a unique opportunity to ride the initial market waves. As a project gains attention and momentum, early investors can strategically capitalize on price fluctuations, buying and selling to maximize returns. While navigating early market dynamics requires an understanding of volatility, the potential rewards outweigh the risks for savvy investors.

The Token Launch: A Privileged Opportunity: Introducing a token launch that presents a privileged opportunity for early investors. Pre-sale information is shared, including the dates (19th and 20th of November 2023) and the corresponding prices for each phase (15 cents, 20 cents, and 25 cents). The token’s total supply is highlighted as 10 billion, with 50% in circulation and the remaining 25% allocated for liquidity provisions, business development, and special projects.

Economics of the Token: A breakdown of the AAS token’s economic structure is provided, detailing the allocation of the 10 billion tokens. Categories include liquidity provisions, business development, special projects, an arbitrage system team, and marketing and operational costs. The reserve purposes are emphasized as a security measure, instilling confidence in potential investors.

Building a Long-Lasting Investment through AAST: The article emphasizes the advantages of being part of an early investment in the mentioned token through the AAS platform. The early investors are encouraged to sign up and leverage the potential benefits of being among the first to access the token when it hits the open market. The minimum registration amount is disclosed, and the article stresses the opportunity to earn a weekly return on investment.

Conclusion: In conclusion, the article is meant urges readers to seize the opportunity presented by the upcoming AAS token launch. Drawing parallels to the early days of Bitcoin and other successful cryptocurrencies, the author highlights the potential for substantial profits and the chance to be part of a revolutionary investment. The call to action encourages readers to subscribe, like, comment, and sign up for the AAS platform to embark on a journey of financial growth and success.