Nigeria’s Cowrywise secures licence from the SEC

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Cowrywise, a Nigeria-primarily primarily based wealth administration startup, has bought a licence to draw as a Fund/Portfolio Supervisor from the country’s capital markets regulator, the Securities and Replace Price (SEC).

The license methodology Cowrywise’s operations now tumble straight under the regulatory scope of the SEC and can also honest serve beef up belief with doable customers. Before now, the startup former a trustee building to present funding opportunities, in partnership with regulated funding administration corporations love Meristem.

Cowrywise became as soon as founded by Edward Popoola and CEO Razaq Ahmed to democratise salvage entry to to financial savings and funding merchandise to the rising demography of underserved Nigerian millennials and the center class. 

At the moment, the corporate boasts a broad fluctuate of funding merchandise. These consist of financial savings-associated merchandise backed by mounted income instruments love treasury funds, which Ahmed has regularly claimed at 10-15% yield greater interests- than what banks supply.

Cowrywise also has about 21 a form of mutual funds and as a minimum 20% of the full mutual funds within the country are listed on its platform, making it the largest aggregator within the country. These property decrease at some level of 5 funding company companions – including United Capital Asset Administration, Meristem Wealth Administration, Afrinvest Wealth Administration, ARM Investment Managers and Lotus Capital. 

For Cowrywise’s purchasers, a license from the SEC methodology bigger protection of their property. “With our recognize license, the SEC now turns into your “guardian”. They’ll double down on our existing safety building to rob you even safer,” Cowrywise stated in a mail to purchasers announcing its recent license on Tuesday.

The Cowrywise crew.

Bettering relationship with the regulator

With primarily the most popular trend, Cowrywise turns into the 2nd fintech startup in Nigeria to stable a license from the SEC after the regulator granted the inaugural one to Chaka just a few days ago.

On the other hand, Cowrywise is the principle fintech to salvage a licence within the fund/portfolio administration category. Chaka, on the a form of hand, bought a Digital Sub-Broker licence.

These trends show an bettering relationship between the Nigerian capital markets regulator and the rather deal of fintech avid gamers that supply funding companies within the country.

At some level of the final few years, DIY-inventory looking for platforms equivalent to Bamboo, Trove, Chaka, and Upward thrust absorb emerged while startups love Piggyvest and Cowrywise, initially targeted on providing digital banking companies, absorb dabbled into funding administration.

These startups supply Nigerians salvage entry to to shares, bonds, and many of securities in each and every native and foreign markets. Whereas they absorb gained reputation among the many young heart class, as they give a methodology to protect naira earnings from devaluations, the businesses were field to a chain of regulatory assaults. Regulation of the residence has been mooted for some time now.

Efforts were made to elevate every a form of and, with the awarding of two licences inner a week, those makes an try are it sounds as if yielding clean results precious to now not easiest each and every parties, nonetheless also the investing public.

What comes next for Cowrywise?

With the recent license, the startup plans to present extra for its companions (fund managers) and traders on its platform.

Cowrywise also stated this may possibly possibly be making its APIs public to serve fund managers internationally salvage entry to its companies and start up extra funding alternatives to serve customers in Nigeria greater.

“Digitizing the funding administration infrastructure is a in actuality significant next step in our vision to democratize salvage entry to to funding merchandise,” the startup stated. “These APIs fabricate now not elegant note to fintechs; any company can embed funding facets of their merchandise as our funding API simplifies regulatory, compliance, and technical hurdles.”

Cowrrywise commenced operations in 2017 and has since grown to absorb over 300,000 customers on its platforms. It honest honest nowadays raised $3 million in a funding spherical led by Quona Capital.

By 2025, the corporate aims to introduce 10 million first-time traders to regulated investments, in retaining with Ahmed.

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