ICEA Lion Group has launched a digital money market fund platform, DigiTrust. The platform aims at encouraging Kenyans to invest, manage, and track their finances. The group is leveraging on the money market technology, which has, over the years, been a challenge in the development and uptake of such personal investment products.
Money Market Funds (MMF) are highly liquid and mutual funds that invest solely in cash securities. They mainly aim at short term investment duration that yields high credit quality.
“DigiTrust is an innovation that enables individual savers and investors to deposit in and withdraw from ICEA LION’s Money Market Fund on a secure platform,” said Elizabeth Irungu, General Manager for Business Development & Client Relations.
DigiTrust is available via web or shortcode. It requires a minimum deposit of Kshs500 to sign up for the service. With its low-risk investment, customers will preserve capital by maintaining the value of their initial investment while still benefiting from the compound interest.
“There are also no penalties for withdrawal or monthly account maintenance charges. Instead, the fund awards you a monthly income. This level of income is typically higher than your conventional savings bank account,” ICEA lion noted.
Speaking during the launch, Nairobi Securities Exchange (NSE) Chief Executive Geoffrey Odundo encouraged the adoption of technology by key players in the financial sector. He noted that access to personal investment was the main challenge. The technology can be the game-changer in increasing touchpoints between asset managers and customers to scale up adoption.
He added that the adoption of technology shall enable investment sector players to offer services at affordable prices, thereby reducing the overall investment cost for retail investors and institutional investors.
The platform has an online calculator that provides an estimation of the amount one stands to gain from their investment. It will help customers in analysis, planning, and future prediction of profits.