Commentators across the globe have examined the importance of savings for individuals and the nation generally. For example, Warren Buffet, the American business magnate and author, once said “Do not save what is left after spending, but spend what is left after savings.” He obviously prioritized the importance of savings over meeting daily wants and expenses. Research has shown that the savings culture of an average African is poor, under the guise that we do not earn enough to meet our immediate needs and we always end up consuming all our earnings.
In the last few years, several online savings platforms have surfaced in Nigeria, one of which is the Cowrywise startup founded by Razaq Ahmed and Edward Popoola and it was launched in 2017, and has been catching people’s attention since then both within Africa and over in Silicon Valley.
CowryWise operates a secure automated service that helps users save money and enjoy high returns from risk-free investments in Nigeria with zero fees. It has so far processed over US$1.5 million in savings for its customers. It gives users the opportunity to grow their savings on personal terms with a completed automated process and plans and in the process earning up to 10-15% per annum. Users are required to create an account via the website, add a payment method and the sit back and watch their money grow.
The startup secured investment from Nigerian early-stage fund Micro traction in June, and was accepted into the Y Combinator Summer 2018 Batch – gaining access to the Silicon Valley-based three-month program and receiving US$120,000 in funding. Cowrywise is helping a lot of Nigerians save effectively, and the long-term effect of this would help improve the saving culture of Nigerians generally.