In recent weeks, two prominent financial platforms in Nigeria, Cowrywise and PiggyVest, introduced new features aimed at enhancing user experience. Cowrywise unveiled “Stash,” a wallet system that allows users to store funds and facilitates financial transactions through assigned account numbers.
The Stash feature enables seamless transfers from traditional bank accounts to Cowrywise accounts. Users can also invest directly into Cowrywise packages or transfer funds to other users without charges. Additionally, transferring money from Stash to regular bank accounts incurs a minimal fee of ₦25 per transaction, significantly lower than standard interbank transfer costs.
Meanwhile, PiggyVest rolled out its own account number system called NUBAN, enabling direct deposits via various methods such as bank transfers, internet banking, and USSD codes. This feature was made possible through a partnership with TeamApt, a fintech solutions provider, which collaborates with Providus Bank.
These updates sparked widespread speculation that the two companies might be gearing up to enter the digital banking space. However, representatives from both companies have dismissed such claims.
Cowrywise clarified that Stash is not a pivot towards digital banking but a tool to enhance how users fund their savings and investments. The company emphasized its commitment to financial planning, wealth management, and investment services, rather than credit offerings typically associated with banking institutions.
Similarly, PiggyVest, known for its evolution from a savings platform to a comprehensive financial management service, has no immediate plans to transition into digital banking. According to the company, the focus remains on providing sustainable investment opportunities and supporting users in achieving financial independence.Launching a digital bank would also require significant regulatory approvals and licensing, processes that are both financially and administratively demanding. For now, both Cowrywise and PiggyVest appear to be concentrating on expanding their existing offerings rather than exploring the banking sector.
