Strengthening your financial wellbeing through investment

The spread of digital banking and financial services apps in Nigeria has been driven by Nigeria’s youthful demographic who use them in more contemporary ways than before.

Nowadays, 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 Nigeria. Still, others promote a healthy saving culture by rewarding users with high ROIs per annum on fixed interest investments.

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.

As part of its commitment to creating fair, reliable financial services and capital for the increasing mobile generation, Branch International, a personal finance app, recently reviewed the interest rates on its investment platforms.

From July 25, 2022, users who choose between Branch’s Fixed and Flexi investments options are guaranteed between 15 and 20 percent 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 percent interest rate per annum when they lock their funds for 30 to 365 days.

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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 percent per annum, accrues weekly instalments 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.

Dayo Ademola, managing director, Branch International in Nigeria, said the update reflects the organisation’s mission and commitment to delivering innovative technology and user-friendly mobile services, which will open new channels for personal empowerment and financial growth.

Currently, Branch records one of the highest ROIs 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, its 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 N500,000 ($1,200) in minutes.

Since its start in Nigeria, it has processed over N6 million loans. With the company’s transition to a full-service digital bank in Nigeria, it is delivering on its mission to build customer-first financial products for people globally.

Patt, a user of financial apps, writes from Lagos

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