Piggyvest Review: What you need to know about Piggyvest savings and investment options

Piggyvest Review: What you need to know about Piggyvest savings and investment options

Raphael Orji Raphael Orji January 14, 2020

PiggyVest – So you’ve been hearing about this Piggyvest savings and investment platform, you haven’t summoned enough courage to take the risk, of course any platform that requires your money comes with its risk appetite/consequence either from your side or the other way.

Whichever way, I am writing this guide to aid you make informed decision to whether save and invest with Piggy or look the other way, I hereby implore you to read this guide to the last paragraph as I am determined on giving you nothing but an honest review of what works and what doesn’t to the best of my expertise.

About/Brief history Piggyvest

Available information claimed that Piggybank is a Fintech startup, the first online Savings and Investment app in West Africa. It was first launched on the 7th of January 2016 as a savings platform only.

This offered only savings features to its users for three years, then in April 2019, Piggybank rebranded to “Piggyvest” then began to offer direct investment opportunities as well to her users.

It claims to have over 350,000 users and counting, they help these users manage their finances, which combine save and invest billions of Naira monthly.

They want to give you the power to better, manage and grow your finances.

Who owns this piggyvest even?

To convey this point home, I got an excerpt from an interview issued by one of the co-founder as published by Forbes.

Piggybank.com seems particularly popular with Nigeria’s Millennials, for whom going online via their mobile phones for da-to-day transactions is second nature, and who currently make up 60% of the company’s registered users.

Having recorded staggering savings growth of 3000% between 2016-17, with the Piggybank.ng community having saved $5M, the company has commanded attention of a group of Nigerian investors, led by Olumide Soyombo, Co-Founder of Leadpath, who has helped the company raise $1.1M.

I caught up with Piggybank.ng’s Co-Founder and COO, Odunayo Ewiniyi, to find out more about the company, how they plan to tackle $2.2bn savings market and how they plan to invest their newly acquired funds.

The interview goes thus:

Tell us a little bit about Piggybank.ng

Piggybank.ng is an online savings platform that enables savers to put away funds that they do not want to withdraw easily. They can save as little as $1 a day and restrict when they withdraw their savings to specific set date they choose.

Unlike a regular bank savings account, where you access the money at any time, Piggybank.ng helps its users maintain their savings discipline while building their savings culture, as they save towards something big.

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Piggybankers can earn on average 6% per annum on automated savings or 10.95% per annum on fixed deposit product, Safelock and can withdraw funds for free once per quarter.

How did the company come about?

We are a team of three co-founders, myself, Somto Ifezue and Joshua Chibueze who met originally at Convenant University, Nigeria. We have worked together for almost 8 years now on different startups and businesses and in 2016, we came together again to tackle the huge issue of savings in Nigeria.

Maintaining discipline in savings was a problem that we as individuals had, we later realize that we are not alone. The majority of Nigerians and Africans, need to save minimum of 40% of their monthly income, in order to survive and pay for even basics such as housing, access to healthcare and school fees. Piggybank was built to tackle this huge and under-served market.

What’s the difference between your product and using a regular savings account from a bank?

Unlike conventional bank savings accounts, the platform restricts withdrawals until an agreed date or users can withdraw their savings on a quarterly basis, whereby savings drawn outside of agreed day attract a 5% early withdrawal fee.

So while the platform is extremely simple and flexible to use, customers are also incentivized financially to keep their money in place, until the agreed date.

How have you grown your user base?

We haven’t invested too heavily in above-the-line-marketing to date, rather our growth can be attributed almost entirely through peer-to-peer recommendations, verbal endorsement from trusted people within your wider network is a super-powerful mode of marketing.

Our users are our influencers, our advocates. They like the simplicity of our products, they see medium long term results in their savings accounts, and then they are compelled to tell their friends and family about us. We also initiated a unique referral program, Piggybank Stories, whereby our savers are rewarded when they share their story.

Once a Piggybanker’s story has been sent in and approved, they receive a unique link that they can share with friends, family, colleagues or social media. Rewards can then be earned as the new user who uses the link engages with Piggybank.

Africans are story tellers, so we have applied this tradition, this genetic structure that sits in all of us to build our user base, which saw a 3000% savings growth between 2016-17 and 20-35% m-o-m growth in user traction over the past 12 months.

How do you generate revenue for your company?

Piggybank.ng generates its revenues through asset management, and our revenue margins currently stand at 4-7%. So, every month, users save, and we invest a portion of that float, and plough back most of the interest we get back to our users.

Our users earn average of 6% per annum on automated savings or 10.95% per annum on fixed deposit product, Safelock, which is higher than the average interests around.

How will you use this investment?

We recently applied for and secured a micro-financing license from the Central Bank of Nigeria (CNN), which was a long term investment for us.

We are also hiring talent in marketing, product and tech departments, as we continue to introduce new products and grow our user base.

Unlike other recent funding rounds, where start-ups have looked outside of Nigeria for VC investment, you’ve raised $1.1M from almost exclusively Nigerian investors – what does this say about the market?

We are extremely proud to have had such credible support from the local Nigerian investment community, and I hope that our engagement with local investors now opens up opportunities for other start-ups, who often assume they have to go abroad for investment.

Many of our peers have to fly across the continent, or head to the U.S or Europe to raise a similar Seed Round. Whilst we’ve naturally held a lot of conversations with a number of different stakeholders through this fundraise process, essentially as a team, we’ve been able to stay in Lagos and spent time working on and redefining our product, and most importantly talking to customers.

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There’s wealth in Nigeria, and so much of it is channeled towards infrastructure, agriculture, real estate, petro-chemicals and so forth, but we have seen very little (in real terms) local institutional investment into the tech ecosystem, and it shouldn’t be like that.

So we are grateful for Olumide Soyombo of Leadpath, for connecting us with a local investor network.

That’s the much we can take from the interview, you now have a first-hand information you need on Piggyvest.

Piggyvest features

AutoSave

This is a feature that allows you to set auto-debits from your debit card to your Piggyvest savings automatically until you reach your target.

You can set it daily, weekly or monthly. You can also set the amount and the exact hour you want the funds to leave your bank account to PiggyVest wallet.

QuickSave

This option enables you to add more funds to your Piggybank savings. You can add up to N200,000 at once with this option, you can however add this multiple times in a single day.

SafeLock

Piggyvest SafeLock feature allows you to put an amount of money aside from your normal Piggyvest savings without having any access to it for a fixed period you set, it works like a customized fixed deposit account.

This feature is one step further in curbing the temptation to touch money that you have put aside as your savings. You can choose to lock all or part of your PiggyVest savings for a duration between 10 and 1000 days.

Flex Dollar

This is a feature that lets you save, invest and transfer funds in Dollar.

You may fund your flex dollar account from your flex naira wallet or your bank card. All you need to do is select an amount in dollar you will like to purchase, then select a funding source and complete the transaction. The minimum you can save with this account is $1.

How do I then withdraw from this flex dollar?

You can withdraw in Naira or Dollar as you so wish. Your withdrawal in Naira will be at the stated parallel market rate. When withdrawing in Dollar, the funds are sent to your Dollar denominated domiciliary bank account.

Where then are the Dollar funds domiciled in this investment?

These funds are invested in dollar fixed term investments with Anchoria Asset Management, a division of VFD group. Anchoria Asset Management is licensed by the Security and Exchange Commission (SEC), Nigeria.

Are there comments/testimonies from existing users?

Was able to get the below comments from existing users of PiggyVest savings and investment

“PiggyVest has helped me to be more discipline with my finance.” –  JESSICA I.

“I’m always happy whenever I see my savings and interest growing. Saving is easier for me every day, I really appreciate PiggyVest platform for this concept. I can save for a whole year without it affecting me, it has really helped me.” – VINVCENT O.

“It’s good news and a lifetime opportunity to be able to improve my savings culture and being prudent at it. It’s turned out to be my best medium to save the best. Thank you.” –FREDDRICK F.

“I don’t spend unnecessarily anymore since I started autosave on PiggyVest. I have saved a lot.” – EZEANYAGU T.

“PiggyVest has been so awesome, it has helped me save more than I could have imagined to save for a few month. It’s been so easy and the autosave pattern is fantastic. Thanks PiggyVest for helping me save my money.” –David O.

To mention just a few of the comments and testimonies as seen by Piggyvest honest users.

How does PiggyVset generate the money it pays its users then?

PiggyVest generates its revenues through asset management, and its revenue margins stands at 4-7%. So, every month, users save, and a portion of that float is invested, and plough back most of the interest it gets back to its users.

These users earn handsomely per annum on automated saving as well fixed deposit product, Safelock, which is higher than the average interests around.

Benefits and draw backs

Benefits

As a PiggyVest user, you stand to gain the following

  • You have the opportunity to save your money at your own pace
  • The benefit of savings ensures you have money to meet your emergency needs when needed
  • You can save at source by using the autosave, this is a feature that allows you to set auto-debits from your debit card to your Piggyvest savings automatically until you reach your target. This means your savings is been taken away before spending commences which should be ideal.
  • You have the opportunity to increase your savings at any point using the quicksave option, this option enables you to add more funds to your Piggybank savings. You can add up to N200,000 at once with this option, you can however add this multiple times in a single day.
  • The customer service is timely and prompt in resolution of challenges
  • Withdrawal is always effective without hassles or delay of any kind.
  • The safelock affords you a fix deposit feature.

Draw backs

  • There isn’t free money, your interest accrued is a function of what you saved and how much you saved.
  • There’s a 5% fee for withdrawals before the scheduled date, this is to discourage you from withdrawing unnecessarily.

PiggyVest Referral

This platform allows you the opportunity to make money by just telling friends about it, using a unique referral link, you earn handsomely whenever any of your referral joins the platform. It’s a good opportunity to tap into your social media network and make some money with ease.

As a good story teller, you can use word of the mouth to get friends and family enrolled for a handsome cash reward.

PiggyVest Interest rate

 

s/n Product Interest rate per annum
1 Piggybank 10%
2 Safelock Up to 15.5%
3 Target Up to 10%
4 Flex 10%
5 Flex Dollar 7%
6 Investify Up to 25%

 

How many products does PiggyVest has?

It has the following products

  • AutoSave – which automatically debits a fixed amount of money from your debit card, which could be customized to be daily, weekly or monthly
  • Safelock – This makes Piggy about the best online savings platform in Nigeria. It gives you the avenue to save and lock up certain amounts you won’t have access to till certain period, this is your fix deposit account.
  • Target Savings – This is a savings challenge, this helps you and other users save for a common interest. You can be saving collectively into a central pace until you reach your target threshold, it’s paid along with accrued interest.
  • PiggyFlex – This is where every interest from your savings plans and targets are paid on the Piggy platform, withdrawal happens at any-time.

How are they able to offer such higher returns?

Their operational cost is relatively low, they do not operate multiple branches or hire a lot of staff to manage operations. They are also able to negotiate premium rates due to volumes.

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All saved funds are warehoused with and managed by AIICO Capital, the leading asset management company in Nigeria, registered and licensed by the Security and Exchange Commission (SEC) which is extremely safe and guaranteed.

A portion of the proceeds is then passed on to users as interests on their savings.

Does PiggyVest has physical office/customer care number

It’s office is located at number 16, Boyle Street, Onikan, Lagos Island, Lagos State Nigeria.

Just in case you need to talk to the customer care, you can reach out via the following:

How does PiggyVest work?

PiggyVest is an online savings platform that enables savers to put away funds that they do not want to withdraw easily. They can save as little as $1 a day and restrict when they withdraw their savings to specific set date they choose.

Unlike a regular bank savings account, where you access the money at any time, PiggyVest helps its users maintain their savings discipline while building their savings culture, as they save towards something big.

Piggy users can earn on average handsomely per annum on automated savings or on fixed deposit product, Safelock and can withdraw funds for free once per quarter.

Is PiggyVest Legist?

From the interview by the co-founder as highlighted above, you should be able to understand that they obtain a license from the Central Bank of Nigeria to operate with a micro-finance legibility, that on its own aside the capital base is enough shake off for possible illegitimacy, recall, they plan to tackle a $2.2bn savings market….. They are duly over legit and suitable to take a fundamental risk for.

Is PiggyVest insured?

Ordinarily a company as Piggy wouldn’t be able to obtain CBN license of operations without detailed operational and regulatory documentation, which insurance is one of them, it’s duly insured.

How safe/secure is my debit card should I chose to use it on their platform?

This company uses a PCI DSS compliant payment processor, Paystack, to keep all the information about your card. With this, your card details are extremely safer without being accessed by third party.

Ratings

PiggyVest has been rated carefully after detailed study with the following yardstick:

  • Customer service
  • System uptime
  • Integrity
  • User experience
  • Online/offline credibility
  • Access withdrawal at ease etc

Piggy has been awarded a total of 9.35/10 from our rating.

Piggy points and rewards

This is a way of rewarding users for saving consistently. The more you save in your Piggyvest wallet, the more you earn.

You start to earn points when you save at least N2,000 at once in your PiggyVest wallet directly from your debit card.

How do I earn PiggyPoints?

You earn PiggyPoints by crediting your account with the represented thresholds/amounts below.

S/n Amount Threshold Points
1 N2,000 – N4999 1 point
2 N5,000 – N9999 2 points
3 N10,000 – N49999 10 points
4 N50,000 – N99999 25 points
5 100,000 and above 55 points

 

What do I do with this PiggyPoint?

You can now convert your Piggy points to cash in your flex account where 1piggy Point = N10.

The problem now is not about saving and investing, how do I withdraw my money when the need arises?

You can withdraw your money for free only on set withdrawal dates. You can set your own free withdrawal dates or you can make use of the PiggyVest quarterly fixed free withdrawal dates.

After your request has been lodged, funds would be sent to your bank account and can also be sent to your Flex account instantly and then you can withdraw to your set bank account anytime.

If you decide to set your own convenient date, the next available free date will be exactly 3 months from your last free withdrawal day.

What then are the PiggyVest free withdrawal dates?

You may head over to your dashboard and choose your free withdrawal dates, you can as well use PiggyVest free withdrawal days which are:

  • 31st March
  • 30th June
  • 30th September
  • 31st December

Note; Withdrawal outside the withdrawal days will attract a 5% penalty fee.

Can I choose any amount to withdraw?

Yes, you can just go to the withdraw page and enter how much you want to withdraw.

Is there maximum or minimum withdrawal?

The minimum amount you can withdraw is N3000, there’s however no maximum, you can withdraw all the funds in your account.

How can I register then?

To register an account with Piggy and start saving and investing your money, kindly click HERE to sign up

Conclusion

PiggyVest is an awesome platform you should give a shot with your money, it’s never late making significant impact in your finance, the system will outlast the test of time without stress of any kind. It’s sure the big wreck and industry hack a waiting traditional banks in Nigeria.

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