Monday,September 02, 2019 / 08:00PM / By Cowrywise  /  Content & HeaderImage by Cowrywise

Fromdollar-based investments to everyday mutual funds, Cowrywise is driving thedemocratization of wealth management in Nigeria 

Inthe past few years, the Nigerian financial space has been an interesting one toobserve. We have seen the entry of nimble startups, their glorious and stagnantmoments, and the undeniable change that has come with them. An outstandingmember of the new entrants is Cowrywise -a micro investmentplatform. Various pointers distinguish Cowrywise from thehost of other similar firms. In this article, we'll expand on them.

Pioneer Security Structure

Uponentry into the fintech space, Cowrywise recognized a key issue littleor no regulation. Hence, it was quite impossible to legally assure users of thesecurity of their funds.  

Takinga cue from pension funds, the founding team went on to establish a trusteepartnership with Meristem Trustees. This agreement was established in June2017. With that in place, it was a lot easier to put the fears of investors torest.  

Aswith any brilliant industrial innovation, a number of similar firms havefollowed suit. In turn, this has not only benefitted the firm but also theconsumers and players within the space. Consumer security sits at the core ofthe regulator's focus.  

Product Framework 

In2017, when the firm launched, it started off with a web app that offered threeproducts: 

1. Periodic investments 
2. Fixed investments 
3. Life Goals 

Asit evolved, a mobile app was created in 2018. With the mobile app cameadditional online savingfeatures:  

1. Save As You Earn
2. Halal Savings
3. Saving Circles (2019)
4. Mutual Funds (2019) 

"Wehave taken out time to carefully ensure that every investment product on ourplatform is under strict regulatory watch. This enables us to prevent undueexposure. The average Nigerian investor is still learning the ropes, so it isvery important that we protect and grow their faith in the system." - RazaqAhmed (CEO, Cowrywise)

PeriodicInvestments 

Theseallow for automated daily, weekly, or monthly investments of a set amount.Asides from the automated schedule, users can top up whenever they want to. Agood use case for most users is a rent-payment plan.  

Interestingly,they offer up to 15% per annum with 10% per annum as the lowest offering. Therates depend on how long the savings are invested. That is, the longer thetenure, the closer you get to 15% per annum. 

Fixedinvestments 

Ifone wants to deposit a large chunk of cash and leave it to grow, Cowrywise hasa plan for that. The same interest rates apply here. Although, it is impossibleto top-up a fixed plan after the first deposit. 

SaveAs You Earn

Now,if the fixed investment option seems rigid and the automated option stilldoesn't work, there is still a plan for you. This works like a fixedinvestment, but it can be topped up anytime you want. 

SavingCircles

Thesereplicate the communal spirit of local group savings. It takes things stepsfurther by offering juicy interest rates, committed donations and improvedtransparency. 

HalalSavings 

Itis not uncommon knowledge that a number of Muslims are opposed to earninginterest. To improve its accessibility, Cowrywise opened up interest-freeplans. That way, it is possible for Muslims to enjoy 100% discipline withoutthe fear of committing any sin.  

Allstated plans have a minimum maturity period of three months. Users are free toset any maturity date that equates to three months or is above that. For longterm plans, Cowrywise offers Life Goals. They operate like periodicinvestments but have a minimum lock-up period of one year.

MutualFunds

Aftermonths of rigorous negotiations, Cowrywise was able to achieve a significantfeat. They have been able to aggregate four prominent mutual fund managers inNigeria. That way, it is possible for users to compare various funds and makemore informed choices right from one app. 

Tomake its offering stronger, its users can start with as little as NGN100.This pilot amount is limited to Naira-denominated mutual funds. Fordollar-denominated mutual funds, the limit is $100.  

How to Get Started

1. Visit the Google playstore or iOS Appstore
2. Search for "Cowrywise" and install the app
3. Register carefully with the correct details
4. A verification email will be sent to you, ensure you tap that
5. Log-in and get started

Wewill love to know what your experience has been with Cowrywise as an existing user, or yourexpectations as a new user via [email protected]

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