Kenyan startup Chumz has built a goal-based mobile app that helps users save and invest money from their mobile money accounts, with as little as US$0.05.
Formed in late-2019, Chumz worked on a prototype in 2020, reaching out to the regulator for a license in late-2020 and receiving one a year later.
The platform works by channeling funds collected from a user’s mobile money account to a licensed fund manager, who then offers a return to the fund. Earned interest is then redistributed to individual clients.
One of the unique features of Chumz is that it encourages users to save based on their behaviour.
“For instance, if a user spends money at a pub, the app suggests investing some of that money instead of spending it all. Similarly, if a user receives mobile money, the app prompts them to save some of the money. Our app offers an easy, convenient and accessible way for users to save and invest, helping them to reach their financial goals,” said Chumz co-founder Samuel Njuguna, who is also…