In this assessment, ADEWUMI OJO looks at what the top five wealth-tech platforms has to offer from a user perspective.
Financial savings and investment is an important factor in human endeavour, as it helps in the area of risk management, savages dire situations and provides a safety net during an emergency.
Despite the services of traditional financial institutions, some individuals find it difficult to save their earnings for an unforeseen situation and future investment.
It’s, therefore, crucial to have an investment plan and, a platform that can help the individual to create wealth.
Research has shown that the inability to cultivate effective savings habit by most Nigerians can be attributed to the low-interest rate offered by the financial institutions.
However, with the advent of technology, traditional financial institutions now face disruption and stiff competition with innovative services that is simple, robust and convenient.
While money may be difficult to find, individual, especially young adults have a time advantage to invest and plan for a good old age as the investment matures.
With low-interest rate and unchanging traditional banking format, a high number of online savings and investment platforms have strung up.
Financial Technology Africa highlights these WealthTech platforms that offer easy, flexible and high-interest investment in Nigeria.
Online savings, financial planning and investment platform based in Lagos, the platform accepts any amount of money on its investment plan with a secure payment and savings channel.
Cowrywise platform offers a whopping 10-15% interest rate per annum. It runs simple and save-on-your-own terms, which allows investors access to their financial growth.
It also offers a savings circle that allows collective savings towards a goal or challenge friends to meeting a target.
Formally Piggybank, PiggyVest is an online and mobile app savings platform targeted at African millennials. It allows flexibility savings as users can choose to save daily, weekly or monthly. Users can save towards a specific target or choose to place a withdrawal restriction on the account
It has an allowance for a four-free-of-charge withdrawal annually, which is set as the last day of every quarter. Users can also choose free withdrawal dates. Withdrawals outside these four days attract a 5% penalty fee. The platform is available on Android, iOS.
The interest rate stands at 0.8 per cent monthly and 10 per cent per annum. There are a savings reward points on the platform which can be converted to monetary value.
Withdrawal charges fee stands at five per cent fee but with four-free-of-charge withdrawal annually, and it has a limited amount that can be saved at a time. Minimum withdrawal on the platform is ₦3,000.
PayDay by ARM
PadyDay allows users to create a savings goal while the platform will invest the fund on behalf of the savers in mutual funds.
The interest rate stands at 12.6% per annum. Users can fund the account with a debit and a 1% convenience charge applies from the card payment platform provider. The charge is capped at a maximum of ₦1,500.
Withdrawals on the platform attract a transfer fee of ₦52.50 and only accept the minimum withdrawal of ₦1,000. The platform doesn’t support reward for savings.
KoloPay allows users to save money towards planned goals over a period of time. You can’t withdraw some part of your savings; you can only withdraw the whole amount even before a goal’s due date. It is available on Android devise and offers an investment package for users.
The platform allows users to share savings goal with friends and the family so that they can contribute to the achievement of the set target. KoloPay Deal, a feature on the platform, offers a massive discount on products and services to Kolopay users. The interest rate on the platform is 6 per cent per annum.
KoloPay attracts withdrawal charges of 5% if it is done before the set date. It doesn’t also give room for minimum withdrawal as the user can only withdraw the full amount.
ALAT By Wema
The first fully digital banking experience, ALAT by WEMA, not only offers basic banking services, it also allows account holders to pay bills through the platform. The bank’s debit card is delivered to account holder’s address at no cost.
There’s no minimum withdrawal and it has a debit card which can be used without charges for three attempts.
As with a traditional bank, ALAT charges a monthly debit card maintenance fee. The interest of 4.2% is on the condition that an account holder does not withdraw more than 3 times a month.
The interest rates on all these platforms are subject to change.