Managing finances has become easier with digital savings and investment platforms like Piggyvest. Established in 2016, Piggyvest started as a savings-only platform but has expanded its services to include investments, offering users attractive returns on their funds.
In a country where financial fraud is a concern, regulatory approval by the CBN is often the benchmark for trust. Users want assurance that their money is safe and that the platform adheres to Nigeria’s financial regulations. This makes it essential to evaluate whether Piggyvest operates under the oversight of the CBN.
Is Piggyvest Approved by CBN?
1. Piggyvest’s Structure and Regulation
Piggyvest is not directly licensed as a financial institution by the CBN. Instead, the platform partners with licensed financial institutions to deliver its services. This model allows Piggyvest to function within Nigeria’s regulatory framework while leveraging the licenses of its partner organizations.
- Who regulates Piggyvest?
Piggyvest works with Providus Bank, a commercial bank licensed by the CBN, to provide its savings services. Additionally, it collaborates with other financial institutions regulated by the Securities and Exchange Commission (SEC) for its investment offerings. These partnerships ensure that funds managed through Piggyvest are held with CBN-licensed entities. - How does Piggyvest secure user funds?
Piggyvest uses a secure escrow system through its banking partners. User funds are stored in accounts that are insured and monitored, adding a layer of safety for savers and investors.
2. Approval Does Not Equal Direct Licensing
It is important to clarify the distinction between “approval” and “licensing.” The CBN licenses banks and financial institutions to operate directly under its regulations. Platforms like Piggyvest, however, do not operate as banks. Instead, they act as financial technology (fintech) platforms that rely on partnerships with CBN-approved institutions.
Piggyvest’s partnership with CBN-licensed institutions indirectly aligns it with the CBN’s regulatory oversight. While the CBN does not directly issue a license to Piggyvest, its collaboration with Providus Bank and other financial entities ensures that it operates within the confines of Nigerian financial regulations.
3. SEC Registration for Investments
In addition to savings, Piggyvest provides investment opportunities. These investment services are conducted through partnerships with SEC-registered companies. The SEC (Securities and Exchange Commission) oversees all investment-related activities in Nigeria, ensuring compliance with rules that protect investors.
Piggyvest’s adherence to SEC standards further demonstrates its commitment to regulatory compliance, even though the CBN is not its direct licensing authority.
Conclusion
Piggyvest is not directly approved or licensed by the Central Bank of Nigeria (CBN). However, the platform operates under Nigeria’s financial regulations through partnerships with CBN-licensed banks like Providus Bank and SEC-registered entities for its investment services. These collaborations ensure that users’ funds are secure and that the platform complies with national regulations.
This setup provides users with a reasonable level of assurance about the safety of their money. While Piggyvest does not hold a direct CBN license, its partnerships with regulated entities make it a trusted choice for savings and investment in Nigeria.
In the end, users should always approach online financial platforms cautiously, conduct due diligence, and understand how these platforms operate within the regulatory framework. Piggyvest has proven itself to be a reliable option for Nigerians looking to save and invest, but awareness and informed decisions remain key.