KENYA – Chumz, an investment app developed by Moneto Ventures Ltd in partnership with Nabo Capital, has been launched in Kenya.
Nabo Capital, a leading fund manager in Kenya regulated by the Capital Markets Authority and Retirement Benefits Authority.
Chumz app allows anyone with a mobile money account to create financial goals as an individual or as a group.
CEO Moneto Samuel Njuguna says once a user is registered, they will be able to create saving goals as an individual or with a group.
The app will then send prompts to the user to invest towards their goal and offer advice on investing based on spending habits. Noting that the app is authorized under the Capital Markets Authority fintech Sandbox.
“Our journey in Chumz began when we observed that Kenya has numerous lending apps which are fueling a consumerism culture and limited investment solutions,” he said.
“We set out to find why customers were not taking up investment options in our developing market and learnt three things; most people are unbanked or under-banked. This means they have to spend more time and effort to invest their money.”
The Chumz app will allow users to invest as low as Ksh. 5 to enable individuals to build a savings culture. This concept Mr. Njuguna says is in line with the tradition of using piggy banks to save and nurturing the habit of saving.
“There is also heavy investment jargon by the financial sector that makes potential clients shy away from investing. Lastly, the current solutions lack methods to keep the people engaged in saving such as feedback mechanisms, social nudges and reminders on when to save and invest,” said Mr. Njuguna.
Speaking at the launch, Nabo Capital Managing Director Pius Muchiri noted ‘that there are about 200,000 active investment accounts in the capital markets compared to over 34 million active bank accounts.
He further noted that bridging this gap is the most important key to accelerating our economic growth.
“Through Chumz, we will enable Kenyans to achieve any aspiration including education, travel, home-ownership and so on. Our partnership is grounded on one desire: to democratize investment by giving people access to opportunities with competitive returns,” he said.
The last couple of months have seen a number of investment apps being launched in the Kenyan market.
Key players in this market are focusing to provide easy access to financial markets and giving users a platform to invest their money towards their goals, track progress while at the same time earning interest.
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