Tosin Osibodu is the chief executive officer of Chaka, a technology-enabled global trading platform launched in Lagos recently offering customers access to Nigerian and global financial assets.
In this interview with IFEOMA OKEKE, he speaks on how the trading platform will provide borderless trading and investment opportunity for Nigerians.
Could you tell us about your professional background?
I am a systems engineer by training with experience working in data engineering and analytics across internet, payments and eCommerce companies locally and globally. I’ve worked with Gtbank, Interswitch, Appnexus (now an AT& T company), and Wayfair. com. Five years ago, I started an international e-commerce business which was later acquired by an American distribution company, and after that, I worked as a data consultant, while pursuing qualification from the Chartered Institute of Stockbrokers.
Having successfully launched a company before, what fuelled your interest in the digital investments space?
I developed a passion for trading and investing over a decade ago of which I have leveraged my engineering experience to build automated trading systems for a while now. My interest in the digital investment space was fueled by my frustration with the barriers that prevented Nigerians from being able to trade and invest in the global economy.
In the last four years, local market and currency performance declined while US markets outperformed. A naira investor in Netflix five years ago would have made over 10 times their investment. Netflix makes money from Nigerians as consumers so Nigerians should be able to make money from them as investors.
Reducing the barriers that prevent such investments for Nigerians and the desire to proactively make investment processes easier are what fuel my interest in this space.
What are your thoughts on the current state of investments and stock trading in Nigeria?
I’m very bullish on the future of investing and trading in Nigeria. The Nigerian Stock Exchange (NSE) and Central Securities Clearing System (CSCS) are innovating fast in modernising and automating the Nigerian capital market infrastructure. Markets may rise and fall due to the economy and a host of other factors but the underlying infrastructure and ease of access can always be improved. Ultimately, the easier it is for new investors to enter the market and the easier it is for credible companies (large and small) to list, the better it will be for the Nigerian stock market.
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Your current venture, Chaka, gives access to trading and investment opportunities both locally and internationally; what influenced the creation of this platform?
US/UK stock markets have historically been inaccessible to majority of Africans due to the compliance burden faced. I also discovered through conversations with friends abroad that global citizens find it difficult to access investment opportunities in the Nigerian market.
Chaka was created to eliminate these barriers. We have solved the compliance and funding problems for Nigerians by integrating foreign compliance protocols with the Nigerian Interbank Settlement System, the Nigerian Stock Exchange and the Central Securities Clearing System unlocking biocredentials for 40 million people verified across these financial systems.
Please tell us more about Chaka? How does it work?
Chaka is your investment passport to trade local and global stocks such as Apple, Alibaba, Google, Manchester United, the S&P 500 index and many more. With the platform, customers can access assets listed on NASDAQ, the New York Stock Exchange and the Nigerian Stock Exchange offering users over 4,000 assets and indexes from companies over 40 countries around the world.
Primarily, our goal is to provide premium borderless trading and investment opportunities for Nigerian professionals and investors; and with our platform, investment has never been easier. Users can place their first trade in just three steps. All they need to do is register with their email address, complete the regulator’s verification process and fund their accounts, and they will be ready to buy and sell stocks using Chaka.
Chaka also facilitates global citizens’ access to invest in our capital market, thereby providing a gateway for foreigners to invest in Nigerian assets while also allowing Nigerians invest in foreign assets.
Are there any criteria to be met for a customer to buy/trade or invest stocks on Chaka?
No. The Chaka offering is overseen by both Nigerian and US financial regulators, so for investor protection and regulator’s compliance, after users sign up, there is a quick verification process before they begin trading.
How do you intend to bridge the gap for the non-tech savvy people? Are there other ways to trade through Chaka?
We built Chaka to be very easy to use for non tech savvy people but still robust for more technical people. While our platform is very simple to use on your desktop, mobile or tablet, customers can also call or email us to provide instructions. We are here to reduce all barriers to more investors being able to access the markets and we are setup to do that for self-directed customers online or customers who want to talk to someone as they invest.
Are there any services available for corporate and institutional clients?
Yes, we provide execution services, white-label services and market automation technologies for corporate and institutional clients. We work with brokers, investment managers and financial institutions to integrate Chaka into their day-to-day operations, serve their customers with a more compelling offer and automate KYC verification, user on boarding and trading execution.
Does Chaka operate independently?
Chaka is partnered with a local broker; Citi Investment Capital Ltd and a global broker based in the US. Through them our offer is regulated and overseen by the SEC, NSE, CSCS in Nigeria and SEC, FINRA, SIPC, IRS in the US.
What are some of Chaka’s unique features that set it apart in both risk and pricing?
We are easy to access and super affordable. Working with local and global brokers, we’ve removed account opening fees, monthly maintenance fees and international wire costs so that it’s more affordable for Nigerians to invest.
We also have a host of unique features such as: stock gifting, naira or dollar conversion on a per asset basis so that you can see how a naira investment would perform in dollar assets or vice-versa; and a host of other special features.
What do you think is the future for the digital investment sector in Nigeria? And what role do you think Chaka will play?
We live in a globalised world now where we are all aware of and use global services like Uber, Netflix, Spotify, etc. We are also increasingly plugged into global news about the markets where we learn more about region, industry and company-specific performance. Due to these, we believe that for people in Nigeria and across Africa, the appetite for investing will only go up.
With our habits becoming more digital, and the work Chaka is doing to reduce investment barriers, we believe that the growth of adoption will continue in the long term. Our platform will better position people to take advantage of the best investment opportunities worldwide.
‘ We believe that by lowering the barriers for Nigerian individuals and businesses to access foreign markets, we make it easier for them to make a return anywhere in the world and we also make it easier for the world to invest in Nigeria ‘
What impact, specifically, do you think this initiative will have on the nation’s economy, especially at a time like this when the border is closed and a lot of investors are lamenting over their investments and businesses?
We believe that by lowering the barriers for Nigerian individuals and businesses to access foreign markets, we make it easier for them to make a return anywhere in the world and we also make it easier for the world to invest in Nigeria. Our expectation is for the initiative to specifically improve the investment income of Nigerians, increase the number of retail traders at the Nigerian stock exchange and increase foreign direct investment.
