The spread of digital banking and financial services apps is being driven by the nation’s youths who use them more than adults, a tech-driven investment company, Branch International, has said.
Its firm’s Managing Director, Dayo Ademola, who spoke in Lagos at the weekend, said these days, a lot of digital banks and financial apps offer users the opportunity to not only save and conduct banking transactions, but also invest their money in various industries within and outside the country while others promote a healthy saving culture by rewarding users with high return on investment (RoI) per annum on fixed interest investments.
He said as part of its commitment to creating fair, reliable financial services and capital for the increasing mobile generation, Branch International, one of the world’s leading personal finance app, has reviewed the interest rates on its investment platforms.
“On a practical level, savings have allowed Nigerians to develop their financial well-being; investing goes one step further, by putting one’s money to work to earn a better return over the long term.
“Investment opportunities offered by digital banks and other fintech apps have provided an accessible method for Nigeria’s youthful population to build healthy savings and diversify their income without the complexities that come with the traditional banking system,” he said.
He announced that users who choose between Branch’s Fixed and Flexi investments options were guaranteed between 15-20 per cent interest, if they leave their investment funds untouched for up to a year.
“The Fixed Investment option allows users to create multiple fixed investments, with different maturity dates. Users will earn up to 20 per cent interest rate per annum when they lock their funds for 30 – 365 days.
“The Flexi Investment, as its name implies, is more flexible.
Users can withdraw cash instantly without a penalty fee and top up the account. The investment package also features an auto-invest option where they can automate how much is added to their investment wallet daily, weekly or monthly for up to 12 months. The interest rate which is up to 15 per cent per annum, accrues weekly installments thereby compounding the base capital. By compounding, users’ investment generates earnings or dividends which are then reinvested. These earnings or dividends then generate their earnings, increasing the total earnings.
“Both the Flexi and Fixed investments are effective ways for users to put their money to work and potentially build wealth. It allows their money to outpace inflation and increase in value primarily due to the power of compounding. By compounding, users can earn a sizeable profit while beating the fluctuating value of the naira. Also, the return on investments serves as a source of regular extra income for day-to-day living and can be reinvested to further grow (or compound) your wealth,” Ademola said.
He said the update reflected the organization’s mission and commitment to delivering innovative technology and user-friendly mobile services, which will open new channels for personal empowerment and financial growth
According to him, currently, Branch records one of the highest RoI in the country and will continue to ensure that users receive excellent services to build capital and save for the future. Aside from offering investment opportunities, Branch’s mobile app (available only for Android) includes a wallet that offers users unlimited money transfers and commission-free bill payments, as well as instant loans of up to ?500,000 ($1,200) in minutes.
He said since it started operation in the country, Branch has processed over six million loans. With the company’s transition to a full-service digital bank in the country, Branch is delivering on its mission to build customer-first financial products for people globally.