investment_in_us_dollars

Don’t fight it: earning solely in naira is a drag on your aspirations to be a billionaire.

A currency that doesn’t massively slack under unpredictable political pressure is an essential store for your value. In general, more productive economies provide greater value for investment. To build wealth in the long-term, therefore, you should want part of your hard-earned salary mixing with those of the world’s richest people.

But how does one invest in high performing developed-economy companies from this part of the world? A number of startups in the Nigerian fintech space are proposing solutions. We take a glance at what three of the current players are offering you.

Bamboo

In less than ten minutes, you can sign up and deposit money into your Bamboo account to buy Apple and Amazon stocks.

Founded in early 2019, Bamboo curates top stocks, exchange-traded funds (ETFs) and American depositary receipts (ADRs) in the United States. The company says its mobile app gives you “unrestricted access to over 3000 stocks listed on the Nigerian stock exchange and US stock exchanges”.

Bamboo’s desktop site

A tab on the app shows “the most-owned stocks in the Bamboo community”, an informal user-generated guide to novice investors looking for the right stock. If you are a sector-specific investor, you will find stocks classified by eight categories including technology, finance, entertainment, transportation, and retail.

Tab on Bamboo showing popular stocks

As an add-on to keep users up to date, Bamboo has a news feed that aggregates latest movements in global finance markets.

The company is backed by Chrysalis Capital, an investment management firm in Nigeria that focuses on seed and series stage technology startups. Part of Bamboo’s finance technology is supported by Flutterwave and counts the payment company’s co-founder, Iyin Aboyeji, as an equity investor.

Rise

As Cashestate, they set out to give Nigerians access to the US real estate market. Newly rebranded as Rise, their revised mission is to broaden the scope to various secure dollar-denominated investments.

With a minimum of $10, users can choose from a portfolio of 30 high-growth US stocks and “own stakes in popular companies like Google, Alibaba and Facebook”.

Source: Rise.capital

Rise offers four asset classes: Us real estate, stocks, technology companies – at a staggering 33% annual return – and Eurobonds. Owing to its brand restructure, it is inviting users to sign up to get early access to the new investment opportunities.

The company says over 3000 investors currently use its service and has over N190 million worth of assets under management. The platform is only available to residents of Nigeria but is a registered investment adviser with the US Securities and Exchange Commission, while providing financial services in Nigeria under a Cooperative License.

Chaka

LIke Bamboo, signing up on Chaka is a rather straightforward process of verifying your phone number, and entering your bank details, especially your Bank Verification Number (BVN).

Bank details?!

“Our platform is regulated in the US by Securities and Exchange Commission, Financial Industry Regulatory Authority (FINRA), Securities Investor Protection Corporation (SIPC), Internal Revenue Service (IRS) and in Nigeria by the SEC, Central Securities Clearing System (CSCS), and the Nigerian Stock Exchange through partnered brokers”, a company representative with technical knowledge of the app’s functionality told me in a chat. “Also, all data transfer to regulators is AES-encrypted and protected with bank-grade encryption”.

With the security question settled (at least for now), what differentiates the app from Bamboo?

Chaka has a “most popular stocks” tab that may not contain the same list of stocks as other platforms. It has a “watchlist” that lists some of the more popular stocks in US and Nigerian exchange markets. A discerning user could find it a useful medium for cross-referencing prices and returns, as a gauge for deciding on an investment.

Source: Chaka.ng

“Chaka is available for everyone,” according to the company’s rep. “We provide direct access to trade local and global stocks directly from Nigeria. That is also why we have gone with a web platform first. So that everyone can benefit from this opportunity.”

They do not yet have a mobile app. “For now, we have a web platform so that everyone can be able to get started immediately.”

None of these are banks or traditional financial institutions. They are all under two years in terms of operations. As with every investment platform, users must weigh risks with clear eyes.

But Nigerians are showing great appetite for the alternatives fintechs provide. Wealth management and investment tech platforms are collaborating with existing financial service providers and regulators to inspire confidence and drive adoption.

While they issue caveats on the health of stocks and projected returns, these startups make the claim that you are investing through trusted brokers and management firms, with your deposit insured. And there will be no stories in paying your benefits.

Their pitch to consumers? Verify, trust, then trade securely.

Read this next
The Real Battle Between Banks and Fintechs is just Beginning
Business, ecosystem, FinTech, Government, Mobile, News, Policy, startups, Technology
7th November 2019

The Central Bank of Nigeria (CBN) wants banks to lend more. This time it’s not just talking. It is compelling them, somewhat. But the new policy it has issued could set the stage for the first real tussle between banks and fintechs.

More From TC

Tope Awotona’s cloud scheduling platform Calendly, has raised $350 million from OpenView Venture Partners and Iconiq capital, making the Atlanta-based company now valued at over $3 billion. The high valuation is due to the explosive growth Calendly experienced last year. In 2019, Calendly had less than a million users; now, it currently has about 10 […]

If you are one of the 21 million subscribers who are yet to get their National Identity Numbers (NIN), you are in for a treat.  The National Identity Management Commission (NIMC) has announced that telecommunication companies and some private companies in Nigeria are now licensed to register and issue NIN to subscribers who are yet […]

For those of you who have been following my skincare journey, you will remember that I spoke to a robot about my problems. Armed with my new bot-recommended skincare routine, I had a virtual sit-down with one the co-founders of BARE, the brilliant startup behind said robot. Oluwaferanmi Ogundipe is her name and building tech for black skin is her game.
This is her life in tech.

When the pandemic struck, the Nigerian government slashed the revenue expectations of different government departments. For the Nigeria Customs Service (NCS), the target was slashed from an initial target of ₦1.2 trillion ($3,145,478) to ₦900 billion ($2,359,108.71).  But contrary to expectations, at the end of last year, the NCS generated ₦1.5 ($3,931,847.85) trillion; its highest […]


TechCabal is a Big Cabal Media brand



Copyright © 2013 - 2021
All rights reserved

Privacy & Terms
X