Online investment and saving platforms are becoming more commonplace in 2022.
Stanchart and Sanlam have just launched SC Shilingi Fund.
In the next couple of days, Kenyans will also be able to invest in another new platform named Cashlet.
Now, there is a new one on the market named Chumz, which, unlike others, will see interested customers invest as little as KES 5, unlike others that ask for KES 1000 or more.
Chumz has been developed by Moneto Ventures Ltd alongside Nabo Capital.
Nabo is a fund manager in Kenya regulated by the Capital Markets Authority and Retirement Benefits Authority.
According to a statement from the firm, Chumz is an app that lets anyone with a mobile money wallet create financial goals, and work towards meeting them.
Groups can also use the platform to meeting a certain goal, track progress and earn interest while at it.
According to Moneto CEO Samuel Njuguna, app will be available for download from Google Play and Apple App Stores.
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.
On the whole, while a lot of Kenyans sometime express the desire to invest, most are experiencing psychological barriers to investing including lack of commitment to a saving plan, being overwhelmed by expenses and forgoing saving for instant gratification.
Specifically, that there are about 200,000 active investment accounts in the capital markets compared to over 34 million active bank accounts.
There are also an estimated of 300,000 chamas managing a total of KSH 300 billion in assets; a number that could rapidly increase with proper governance structures & investment platforms.
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 – Nabo Capital Managing Director Pius Muchiri.
For instance, if you spend in a restaurant the app will suggest how much you need to save. You can also invest with family and friends as well as making use of behavioral psychology practices such as social nudges, default bias, and self-commitment to bridge the gap between intention and action – Moneto CEO Samuel Njuguna.