There several Fintech startups in Nigeria that provides wealth management solutions.
Some of these wealth management technology startups give Nigerian investors access to investments opportunities in foreign countries, and dollar savings opportunities with high interest rates
Related Articles:
- Best 6 Mobile Apps to Buy US Stock from Nigeria
- Best Apps to Save in Dollars in Nigeria
- Benefits of Technology in Fund Management
Advantages of Investing via WealthTech Platforms
Accessibility
WealthTech makes financial services more accessible to a broader audience, breaking down traditional barriers to entry in wealth management.
Cost Efficiency
Automation and digital platforms often result in lower operational costs, enabling WealthTech startups to offer more cost-effective solutions compared to traditional financial services.
Personalization
Through advanced algorithms and data analytics, WealthTech startups can provide personalized investment advice and financial planning tailored to individual needs and goals.
Innovation
WealthTech fosters innovation by leveraging technologies like artificial intelligence, machine learning, and blockchain, allowing for the development of novel financial products and services.
User Experience
Many WealthTech platforms prioritize user-friendly interfaces and seamless experiences, enhancing customer satisfaction and engagement.
Disadvantages of Investing via WealthTech Startups
Regulatory Challenges
The financial industry is heavily regulated, and compliance with evolving regulations can be a significant challenge for WealthTech startups. There may be some digital investment platforms that may not have gotten regulatory approvals. You therefore need to do your diligence before investing through any wealthtech startup.
Security Concerns
Handling sensitive financial data makes cybersecurity a critical concern. WealthTech startups need robust security measures to protect client information.
Cases of Stolen or Lost Password
When you lose or forget your login details, you may find it difficult access your investment. And if unauthorized persons get access to your login details, your investment may be compromised or taken away from you.
Lack of Human Touch
While automation streamlines processes, some clients may prefer human interaction, especially when dealing with complex financial decisions or during uncertain market conditions.
Market Volatility Risk
WealthTech platforms heavily reliant on algorithms may face challenges during extreme market conditions or unforeseen events that can disrupt traditional financial models.
Limited Track Record
Many WealthTech startups may lack a long track record compared to established financial institutions, which can affect trust and credibility among potential clients.
It's important to note that the success or challenges of a WealthTech startup can vary based on its specific business model, strategy, and the regulatory environment it operates within.
Top Wealth Management Technology Startups in Nigeria
- Bamboo
- Chata
- Risevest
- Trove
- Passfolio
- PiggyVest
- Cowrywise
- WealthNG
- Muna
PiggyVest
PiggyVest (formerly PiggyBank) is an app that allows you save and invest with convenience in a secured manner.
PiggyVest enables you save little amount of money periodically: daily, weekly, monthly. You don’t have to log in every time to save because everything is done automatically once you set up Autosave with the amount you want to save periodically. You also have the option of turning off Autosave.
When you open PigyVest account, you will have 5 wallets — PiggyBank, Target savings, SafeLock, Flex Naira, Flex Dollar and Investify wallets.
Piggybank: Is a core savings wallet where you save periodically in an automated manner. You can only withdraw from your Piggybank wallet on free withdrawal dates which are the last days of every quarter of the year. Withdrawal outside the free dates attract 2.5%. You also have a choice of setting your own quarterly withdrawal dates. You get 10% per annum interest.
Target Savings: It allows you to save consistently to meet a particular financial need. Interest rate is 10% per annum.
SafeLock: is a fixed savings which enables you lock up funds for a specific period of time (10 days minimum) without access to the funds till maturity. You earn 6 – 15.5% per annum interest, prorated accordingly, and depending on the duration you set.
Flex Naira: Is a savings account that you can save money in at your convenience, receive money from any other commercial banks. To receive money from other banks, select Providus Bank during the transfer transaction. You can withdraw from your Flex Naira wallet at will but once in 10 hours. You get 10% interest on your Flex Naria savings.
Flex Dollar: It enables you save, invest and transfer funds in Dollar. You can fund your Flex Dollar Wallet from your Flex Naira Wallet or from your bank card. You can save minimum of $1. You can withdraw your dollar savings in Naira into your local bank or Dollar into your Dollar denominated domicilary account at prevailing buy price at the parallel market. You also get 5% interest on your dollar savings.
Investify: It is a PiggyVest feature which enables users to invest their savings in pre-vetted and low-medium risk, primary and secondary investment opportunities to earn more money. Investors earn up 25% interest per annum on their investments.
Interested Rate: PiggyVest offers 6-15.5% interest per annum on savings.
Sign up to PiggyVest
Cowrywise
Cowrywise is a mobile app where you can save money, invest money in different currencies and earn impressive interest of up to 8.5%. You can start saving with N100. The wealthtech is licensed by the Nigerian Securities and Exchange Commission (SEC) to operate as fund manager.
Bamboo
Bamboo Investment is an online investment platform which gives Nigerians and other foreigners access to invest in over 3,000 securities listed on US stock and Nigerian stock exchanges through a free mobile app.
Bamboo has investing technology which allows you to invest as much or as little as you want in your preferred publicly listed US company, a bundle of companies called an ETF, other African-based companies, mutual funds, or fixed-income products from around the world.
On the app, you can discover the best global and local stocks to invest in and receive unrestricted access to the U.S. and Nigerian stock markets.
Bamboo maintains all its accounts with a top-tier US brokerage firm. It is also a member of the Securities Investor Protection Corporation (SIPC).
Bamboo Inc is registered by SEC (Security and Exchange Commission) both in the United States and Nigeria, and each Bamboo account is covered by a $500,000 insurance policy.
Bamboo also gives users access to buy, store and trade cryptocurrencies.
The app currently has about 500,000 registered users.
Risevest
With Risevest app, Nigerians can start investing in US equities. You can start with minimum of $10 or the Naira equivalent. If you’re a novice or have no times, Risevest gives you the option to allow Rise professionals to manage and invest your money in a portfolio of vented US equities.
Risevest gives investors access to different investment portfolios such as stocks, US real estate, and fixed income, according to your risk appetite.
The stock selection method considers long-term performance, growth potential, and high-quality earnings.
The Rise app is available for Android and iOS smartphones.
Trove
Trove is one of the top online investing platform that allows Nigerians to leverage in both domestic and foreign stock market investment opportunities
Trove users can access more than 4,000 stocks including U.S. equities and exchange-traded funds (ETFs), American Depository Receipts (ADRs), and Nigerian Stocks listed on the Nigerian Stock Exchange (NSE). If you are interested in mutual funds, Trove got you covered as the app also offers mutual funds from top-tier Mutual fund providers in Nigeria.
Nigerian investors can start investing in TSLA shares with as low as an N1,000 deposit. With Trove you can invest in American, Chinese and Nigerian stocks, Bonds, ETFs etc. Trove app is compatible for both Android and iOS phones and tablets. Download Trove app from your respective apps stores.
Passfolio
Passfolio is more global than other apps above as it allows not only Nigerians to buy shares in the United States but also allows residents of about 200 countries access to buy US shares.
The San Francisco-based FinTech investment firm also allows users to fund their accounts by using crypto assets.
To break funding constraints some investors may face due to trans-border transaction laws, Passfolio gives users the option of first funding their accounts using cryptocurrencies, then convert into dollars via Passfolio Financial, then move the dollar proceeds to their brokerage accounts at Passfolio Securities, where they can be able to buy securities.
Passfolio Pro gives users access to advanced features such as Margin Trading, and Advanced Orders etc.
Chaka
Chaka is an investment app that provides Nigerians access to invest and trade shares in more than 40 countries including USA and Nigeria. Aside from Nigerian and American stock exchanges, Chaka provides access to global blue-chip companies from over 40 countries. With a minimum deposit of $10 or N1,000, you can start trading abroad shares of global blue-chip companies with at the comfort of your home.
If you prefer to trade in Nigeria stock market, Chaka will give you access top-performing Naira portfolios curated by certified wealth management experts. No prior investment experience is required.
Chaka has obtained the SEC’s First Fintech License. Local assets are registered with the Nigerian Stock Exchange (NSE), and Central Securities Clearing System (CSCS), and regulated by the Securities Exchange Commission of Nigeria (SEC).
Chaka allows you to earn money by referring other people to use the app. The refer-and-earn program offers you cash rewards for every friend you invite that creates an account and places a trade of at least $10.
WealthNG
WealthNG is another wealthtech platform that allows Nigerians invest and trade in US stocks as well as in Nigeria equity market.
Owned my Sankore Securities Limited, WealthNG is one the companies to integrate technology into stock trading locally like purchasing shares in Dangote, UBA, GTCo and other Nigerian companies. Some of its products available on the app l include ETFs, REITs, and has stepped up its game by including foreign stocks.
With WealthNG, you will have access to global stock markets include the US securities
It’s an easy to use app, and when there is a change in price, users can easily get the information right on wealthNG app.
Investment through WealthNG can be funded via your Flutterwave wallet.