Piggybank.ng? Verified?


#1

Hi! Anyone know anything about these guys? Are they legit?
Would love to know more about them, beyond what’s on their website.

Made the (hard) conscious effort to leave 10k in my account for Friday debit and then I see this.

Are these guys ready?


#2

I knew the coloured lines at the top looked familiar. I saw “Sharphire Global Limited” at the footer, the same company behind PushCV. I guess they’re taking advantage of PayStack’s recurring billing feature to handle the automatic debits. Looks good :slightly_smiling:

Where did you hear about them?


#3

I like! But unfortunately I can’t trust them with my money for now.

I may change my mind when I see a verifiable testimonial + a “delivered in partnership with Nigerian banks” text on their website.

Sorry…

PS: to be clear, I think they need to spend some time to layout:

  • security related FAQs - how they are not a fly by night biz and how they keep people’s money/card safe.
  • how they are able to pay interest on the money people keep with them
  • why people should save with them vs using similar products offered by the banks

#4

Exactly what I discussed with their support staff on phone yesterday. He said they are working with financial institutions and those information will soon be updated on their site.


#5

The PayStack billing made me sign up. They have my first 10k!

If I hear pim about my money, na to change my card


#6

Do you have another 10k you’re not using… I don’t mind borrowing.

OK, seriously speaking, it sounds like a great idea, but are they CBN registered/regulated?


#7

They need a financial services license from CBN and if they do, they must make it visible eg. Powered by accessbankplc which means the funds are guaranteed by access bank.


#8

This made me sign up, as I am all fintech. No they don’t need a license, but they need to be smart. A license will be only required if they hold client money. The smart thing is not to hold client money at all throughout the process: Client pays them, said money goes straight to bank X (segregated account), earns interest and at payday, bank X pushes original Funds + interest (less any fees from piggybank.ng) back to the client. OR better yet, piggybank.ng charges the fee upfront (think paypal adaptive pay) before routing to the bank. You get the idea.

That being said, a partnership with the bank will be necessary (only, because they need a segregated account, which ensures clients money is not used in Vegas to gamble).
I don’t know if the promise some interest over and above what the banks official interest rate is (if they do, this is sad as it will mean they have to invest clients funds somewhere “extra risk”), then they certainly do need a license and need to spell out the additional risk explicitly.
In summary, the smart approach is to act as a middle man, without clients fund actually touching their hands.


#9

Yup! I got the middleman feeling when I read the first paragraph of their Terms&Conditions.

PayStack debits, Access Bank holds the money. Upped my confidence level.


#10

Hmm, nice analysis. Did you follow the Wonder Bank issue that happened in 2006/07 period? Soludo single handedly destroyed them when they started showing up everywhere and eventually caused a lot of people to lose money, even those of us that had invested in Pyramidal schemes at that time.


#11

didnt follow that specific issue, but pyramid schemes are nothing new.

@BukkieSho having access bank hold the money is not enough (it could be someones personal bank account, but you can’t know that). It has to be a “segregated account” where piggybank can’t redirect funds once in the access bank account (they are probably doing this, if they aren’t - RUN). This also addresses @logbon72 concern.
On a random note, not sure they can use the word “bank” in their company name without some sort of clearance.


#12

where does the piggybank money go? are they making money ontop your head, i.e. fixed deposit?


#13

What I’m wondering is how they’ll be able to afford to pay the interest. 4% per annum is higher than what a lot of banks (if not all banks) are offering.

The only that thing that comes to mind that could be low risk is treasury bills.


#14

In a country like ours, this concept indeed raises a lot of questions, many of which has been afore-mentioned. But what I would like to know is how does the company make money? How do they intend to turn a profit from this? Will they invest people’s savings in other ventures expecting returns? Or would they rely on interest charged from people withdrawing before the scheduled dates?

Its a great idea and would be exceptional if they are able to actually pull it off. But as a believer in breaking new frontiers and supporting indigenous going-concerns, they have my N5k for a start. Lets see where this leads us.


#15

They need a microfinance Bank license according to CBN regulations. By the way micro finance Banks don’t keep money as well. They bank with commercial banks. They don’t need to have a license to start, they only need to have applied for one


#16

Mehn, this just goes to show how hard it is to run a financial business model in Nigeria. I like Piggybanks idea, and how they are thinking outside the box. There’s a lot of stigma about fraud in Nigeria, and I get it, but fraud happens everywhere, even worst in the same countries we try so hard to emulate.

Why are people so concerned about what PiggyBank is doing with your money? Do we ask the same questions when we contribute money into our banks savings, fixed deposits accounts, or even treasury bills? Fyi, the banks and other financial institutions use your money for other business as well and in turn pay you interest. Piggybank is probably investing your money somewhere, may be treasury bills as someone already mentioned or something else. As long as it’s legal and they stick to their words, I don’t see any issue with it. If they don’t use your money for something else, how do you expect them to make a profit and give you the 4% interest???:confused:

After reading the FAQs section, the most important question I have is what licences, if required by law, do they have to run their business? It looks like they are already insured NDIC.