Trusted CMA Test Unit Mobile App

Capital markets

Trusted CMA Test Unit Mobile App


Wycliffe Shamiah, CEO of the Capital Markets Authority (CMA). PICTURES | DIANA NGILA | NMG

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Summary

  • One company has developed a mobile app, Cashlet App, for retail investors looking to buy a diverse set of equity and fixed income investments like government debt paper.
  • Currently, such investment services called unit trusts are offered by fund managers, but Sycamore Capital Limited wants to link them to a mobile platform that makes it easier for clients to sign up, invest and exit.

One company has developed a mobile app, Cashlet App, for retail investors looking to buy a diverse set of equity and fixed income investments like government debt paper.

Currently, such investment services called unit trusts are offered by fund managers, but Sycamore Capital Limited wants to link them to a mobile platform that makes it easier for clients to sign up, invest and exit.

Mutual funds allow retail traders to make as little as 5,000 shillings worth of investments in collective investment schemes, which currently have over 100 billion shillings in assets under management.

The Capital Markets Authority (CMA) has admitted Sycamore Capital to test the Cashlet application in its sandbox for six months.

Sycamore Capital’s admission to the CMA Regulatory Sandbox brings the number of participants in the live test environment to 13.

“The Cashlet app, if successfully tested and deployed in the open market, will play an important role in boosting investor participation in capital markets through collective investment schemes (SICs),” said said CMA chief executive Wyckliffe Shamiah.

“This could contribute, in some way, to the growth of assets under management in the CIS beyond the current value of 100 billion shillings.”

Mr. Shamiah said the Cashlet app would provide retail investors with a convenient and affordable opportunity to access diversified and professionally managed portfolios of assets.

Traditional capital market products, such as buying stocks from brokers, fixed income and government securities, are being disrupted by new models of customer onboarding and investment management.

Companies targeting young people are introducing easier ways to attract investors via mobile platforms and simplifying financial market products and how they are bought and sold.

For example, Koa, a mobile savings company, gives Kenyans with as little as 1,000 shillings access to fund managers for a 10% return.

Egyptian brokerage firm EFG Hermes has launched an “EFG Hermes One” mobile app targeting retail investors wishing to buy shares on their mobile phone.

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