Take control of your spending habits, invest and save money, and grow your net worth with these wealth management apps.
In Nigeria, your savings needs to earn at least 12% cumulative interest every year, for you to beat inflation. Nigeria’s annual inflation rate fell for the eighth straight month to 15.40% in November of 2021, from 15.99% in October. It was the lowest rate since November last year, amid the continued deceleration in food inflation (17.21% vs 18.34%), according to Trading Economics.
Previously, we told you that to beat Nigeria’s continuous inflation rates, you will need to leverage fintech investment package, stocks, mutual funds and exchange-traded funds (ETFs), save in other currencies (USD, Euro, Swiss Francs, etc.), cryptocurrency, bonds, agro-investment and real estate investment.
As 2022 begins, you need to pay attention to these strategies, hence I curated a list of some fintech companies offering wealth management services for Nigerians and Africans.
With a deposit of $10 or ₦1,000 you can commence your investment journey of buying global and local stocks and bonds on Trove. You can invest in over 4,000 stocks on Trove, including U.S. ETFs, American Depository Receipts (ADRs), and companies listed on the Nigerian Stock Exchange (NSE). Mutual funds are also available on the app.
Trove is backed by Ventures Platform and ARM (Asset and Resource Management company), one of the biggest asset managers in Nigeria. Also, they received a grant from ARM Labs and the Nigerian Stock Exchange.
Rise allows its users to allocate capital across a portfolio of US stocks, US rental properties and global fixed income assets, all in dollars. As a wealth management app, users cannot trade or pick securities by themselves; Rise provides selected and managed portfolios.
In 2020, Rise said its return rate for stocks was 40.77% and 87.7% in dollars and naira, respectively. Meanwhile, real estate scored 6.0% in dollars and 54.7% in naira. With $10, you can kick start your wealth management journey on the various investment offerings.
For real estate and fixed income plans, users can withdraw on maturity, and the shortest duration is three months. Meanwhile, for stocks plans, there is no lockup period therefore users can withdraw at any time. All withdrawal requests are processed within 24 hours.
Registered in Delaware, U.S., Rise invests globally through a registered and regulated investment advisory firm in the US and all investments are held with regulated third parties, while ARM Trustees provides oversight for users.
Founded by Solape Akinpelu, HerVest aims to bridge the $42 billion gender finance gap for urban and last-mile women in Nigeria with an emphasis on women in agriculture.
With HerVest, women can save for short and long term goals, make seamless fund transfers across different platforms and support other women while earning financial returns. As of press time, the female-focused wealth management app does not have an investment plan so users can only save but the minimum investment is ₦5,000 with a 20% ROI in four months.
Say you fund a female-owned, Irish potato farm for N25,000 at an interest rate of 10% in 5 months, your money will grow at 2% every month. With HerVest, your interest accrues daily and compounds monthly. - HerVest
All HerVest funds are held and managed by FBNQuest Trustees Limited, a member of the FBN Holdings. FBNQuest Trustees Limited is regulated by the Securities and Exchange Commission (SEC).
FundBae offers an easy-to-use application that offers flexible savings and higher interest rates on their savings offering up to 15% interest per annum relative to a traditional bank account.
Users can save as low as ₦100. Interest accrue every 24 hours and they can liquidate their investments at any time. However, specific plans attract 5% on the total amount you are withdrawing if this falls outside of free withdrawal days, loss of all interest accrued if you liquidate before maturity on your Vault Plan and also withholding tax of 10% on total accrued interest due.
Fundbae is licensed through its collaboration with a CBN licensed micro finance bank — Kwacofocus MFB. In 2021, over 30,000 users saved on the app, exceeding a ₦1 billion transaction value.
Ladda offers users the opportunity to grow their own personalized portfolio of mutual funds, eurobonds, local and international stocks that are available in one secure location and easily accessible at all times with a minimum of ₦500.
Currently, the investment options on the app includes naira and dollar mutual funds with 7% return on investment annually.
i-Invest allows investors to purchase diverse instruments, including treasury bills, fixed deposits, equities, Eurobonds, commercial papers and life insurance.
This app requires a minimum of ₦10,000 for investments in treasury bills. Meanwhile, minimum investment for fixed deposits is ₦100,000, and withholding tax is deductible from accrued interest.
This platform allows its users to start saving with as low as ₦1,000 in the following plans:
- MiSafe: This feature avails users the opportunity to make untenured contributions, accessible at any time for withdrawals.
- MiTarget: This contribution variant is for continued build-up of contributions targeted at a project. It is a tenured account, only accessible at the end of the period set by the user or at any time, minus a 3% penalty.
- MiLock: This is a one-time fixed contribution for at least one year, accessible only after the said period or at a penalty of 3%. The tenure can be renewed and additional deposits can be made at any time.
Overwood is an investment platform that protects its users principal and enables then to earn up to 12% per annum. This platform invests in mutual funds, money market instruments, government bonds, credit-backed instruments, capital market instruments, and treasury bills, offering 8 – 15% annual interest rate on investment.
Cowrywise is designed to help its users to save as little as 100 Naira using multiple plans and circles. The app also has a feature for mutual funds in dollars and naira as well as emergency fund plan that ensure you don't touch your main plan.
Piggyvest enables its users to save money to meet their goals. Users can choose to save little amounts of money periodically (daily, weekly or monthly) towards a specific target or lock away funds for a specified period of time.
The platform also offer people the opportunity to invest their money in various ventures and get up to 25% return on investments for as little as eight months or more. Saving money attracts up to 13% interests.
In 2019, Piggyvest introduced Investify so users can invest in low-risk investment opportunities. Founded in 2016 by Joshua Chibueze and Odunayo Eweniyi, Piggyvest is arguably the biggest digital savings and investment technology platform in Nigeria. They have over three million users.
What you need to register for most of these apps
Registration is easy, just have your bank verification number at hand, a valid phone number, a smartphone, and you are ready to go. You will also need to upload your KYC [know your customer] documents after you have registered. These documents include:
- A picture (preferably a portrait)
- Government issued ID card — international passport bio data page, driver’s license, voter’s card or national ID card (All documents must be permanent and valid).
- Evidence of address – Recent utility (including electricity, water, and waste) bill, permanent driver’s license, permanent voters card, bank account statement, tenancy agreement or land use charge (All documents must bear your address).
Note: This does not apply to all of the platforms.
Update: January 13; MiDollar was removed from the plans Microvest offer and the penalties were reduced from 10% to 3%.