Standard Chartered Bank Kenya’s online money market fund reached Sh1.25 billion, in
less than a year underscoring the growing appeal of savings products for clients looking
to make contributions as low as Sh100.
Over 10,000 clients have signed up for the SC Shilingi Fund product since its mid-
February 2016 introduction. Customers can enroll with a minimum deposit of Sh500
and choose to make daily, weekly, monthly, or one-time payments.
According to Paul Njoki, head of affluent banking and wealth management at
StandardChart Kenya and East Africa, 81% of all new clients are under the age of 40,
with 38% falling under the age of 30.
“In the middle of February, we debuted SC Shilingi (last year). Our current portfolio is
worth Sh1.25 billion. Over 10,000 people are our clients. We find it fascinating that the
majority of our clients are under 40, said Mr. Njoki in an interview with the Business
Daily.
To handle the digital money market fund, the bank collaborated with investment
manager Sanlam Investments East Africa and global provider of digital wealth
technology Bambu.
A total of roughly Sh14.5 billion worth of assets are being managed through the Sanlam
Unit Trust program.
According to the fund’s current effective annual yield of 9.6%, customers who sign up
through the SC Mobile platform are receiving these kinds of returns.
Money market funds, which enable investors to receive their money within a few days,
typically invest in short-term assets like bank fixed deposit accounts and Treasury bills.
These funds are well-liked by investors and savers who want to conserve their wealth or
have easy access to their money while earning a return.
Insurance companies like ICEA Lion and Britam have taken the lead in developing
products that let clients use technology to their advantage and save money.
In order to provide individual investors with access to the company’s money market
fund at a lower initial investment threshold, ICEA Lion Group created an online
platform in 2021 called ICEA DigiTrust.
Compared to the original offer, which established a minimum initial investment size of
Sh10,000 and a minimum top-up of Sh2,000, investors now need a minimum initial
deposit of Sh500 and a top-up of as little as Sh20.
A digital money market fund that enables users to invest as little as Sh100 was
introduced by Britam Asset Managers and fintech company KOA in June 20.
