Amid rumours that it lost a colossal N2 billion of investor funds to a fraudulent investment scheme, Piggyvest, an online saving and investment platform has announced to its users that their funds are ‘safe and secure’.
The rumours started after an Instagram user @_trapselena_ alleged that Piggyvest and some other top organizations in Nigeria invested in an allegedly fraudulent company, Imagine Lenders.
The company is managed by Bamise Samson Ajetunmobi and his wife, Elizabeth, both of whom have been declared wanted for fraud.
As with all rumours, this one quickly spread all over social media and many users were driven to panic.
But in a quick response, Piggyvest released a statement on all its social media handles to allay the fears of its customers and assure them that their funds are safe.
“Please note that Piggyvest will NEVER compromise the funds of any users in any way. All Piggyvest user funds remain safe and secure. No user funds have experienced any loss of any kind, nor will they experience anything of the kind,” the statement reads in part.
Though it did not state if the investment platform indeed made such a bad investment, the statement was enough to calm panicked nerves.
How safe are funds in Piggyvest?
Founded in 2016 by Somto Ifezue, Odunayo Eweniyi and Joshua Chibueze, Piggyvest is one of the foremost fintechs in Nigeria. Last year, it paid back NGN90 billion ($220 million) to users which currently numbers up to 3 million.
Piggyvest has often been mentioned when it comes to financial rumours. As such, its communications and PRO teams often find themselves having to control these situations for the benefit of customers. And they have always done well enough to instil confidence in their users.
But even if the startup does lose some significant sum of investor funds, should there really be a cause for alarm? How much of a backup does Piggyvest have to withstand such a loss and make sure customers don’t feel a pinch?
Piggyvest operates as a Microfinance bank regulated directly by the Central Bank of Nigeria and funds are insured by the Nigeria Deposit Insurance Corporation.
The NDIC is responsible for insuring all deposit liabilities of licensed banks and other deposit-receiving financial institutions in Nigeria. Fintech companies that are in the business of obtaining and saving money deposited by Nigerian consumers such as PSBs must be registered with the NDIC, pursuant to section 15 of the NDIC Act, 2006.
Piggyvest also says all savings on its platforms are housed with a registered and licensed assets management company in Nigeria, AIICO Capital.
So is there really a cause for alarm? Probably not. For some users, however, the constant involvement in financial rumours is tiring.
This is, however, not in the hands of the fintech company is it has no control over what people say about it. But as a company trusted by millions to secure their funds, they have to keep responding whenever such rumours surface.
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