A New Report Shows There is an Increase in Fintech Startups Offering Services that Allow Nigerian Youths to Buy US Stocks.
Fintech startups like Bamboo are helping a good number of young Nigerians to invest in US stocks and assets easily.
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According to the report released by Quartz Africa Weekly Brief, these fintech startups offering services like payment processors, payment providers and investment platforms largely define the African technology ecosystem.
Moreso, because there is a good number of unbanked persons in Africa, it offers a good opportunity for investors. This somewhat financial development has attracted foreign venture capital investments in payments services and mobile money transfer companies in Africa.
Aside payments and digital banking, there is a growing number of “wealthtech” or wealth management or fintech startups offering investment opportunities to willing users in Nigeria, the Quartz Africa Weekly Brief report revealed.
According to Eleanya Eke the founder of RISE, Rise with over 1000 users now. Rise started as an investment club before it rebranded to a fund management company due to increase in demand of the service it offers.
Moreso, the club evolved into buying and renting of residential property in the United States. But as the group increased in number, demand for its service increased which led to real estate investment and then buying of US stocks.
“We first started with U.S real estate but a lot more people were interested in US stocks. All of that informed our move as there’s a really strong demand for it especially among the internet-connected crowd.”
Also, there is a growing number in the use of wealthtech platforms like Piggyvest and Cowrywise. These wealth creation platforms offer a better percentage on savings which is far better compared to traditional banks.
Eke admits Nigerian youths are more interested in savings platform offering them a fair percentage over time. Considering the fact that they are on the early stage of their careers and have the longest investment horizon.
The youths of Nigeria don’t involve in the Nigeria Stock Market investments because the market doesn’t appear to be transparent and favourable. A lot of other contributing factors not excluding the perception that the market is rigged in the favour of some people or group of investors.
Because of these factors, most of our youths prefer to invest in foreign stocks mostly US stocks like Facebook, Tesla, Apple, Twitter etc.
Bamboo is an investment app which now has over 10,000 users in Nigeria since it’s launch in October. The investment app helps her users to buy US equities through it’s partnership with some trusted brokerage firms in the United States.
At present, there is no verified cryptocurrency or blockchain technology powered investment platform operating in Nigeria. Such new development is needed in the cryptocurrency investment space.
There is need to enlighten the public mostly our youths of the benefits that abound in investing in cryptocurrencies and the use of blockchain technology. Very few of our youths understands this technology and how to use it.
Previously, during our interview with Charles Soludo former Governor Central Bank of Nigeria, he advised the Nigerian youths to study and understand how cryptocurrency works before going into it. This equally calls for the need to create a verified platforms for investment opportunities for the booming youths of Nigeria.