Sycamore, a Nigerian digital lender, has acquired a fund manager license from the SEC, marking its entry into asset management. The company plans to offer diversified portfolios, targeting freelancers and SMEs. CEO Babatunde Akin-Moses emphasizes this move as a complementary expansion to their core lending business. With new leadership and technological enhancements, Sycamore aims to democratize investment access for everyday Nigerians.
Sycamore, a digital lender in Nigeria managing ₦10 billion in assets, has received a fund manager license from the Securities and Exchange Commission (SEC). This development marks the company’s strategic expansion beyond its primary lending operations, allowing it to provide various investment options to Nigeria’s increasing retail and institutional investors. Through its new offerings, Sycamore aims to meet the rising demand for accessible investment services.
The firm plans to provide diversified investment portfolios that include stocks, bonds, and money market instruments in both local and foreign currencies. Driven by customer feedback, CEO Babatunde Akin-Moses highlighted that many of Sycamore’s 300,000 users, including freelancers and SMEs, have requested more straightforward investment avenues. Akin-Moses stated, “Securing our SEC license is the culmination of years of building institutional-grade compliance systems. We’re not pivoting from lending; this is a strategic expansion that complements our core business.”
Nigeria’s investment landscape is primarily dominated by established firms such as ARM and Stanbic IBTC, alongside emerging fintech challengers like Bamboo. However, most of these platforms predominantly serve either affluent individuals or tech-savvy retail clientele. Sycamore recognizes a significant opportunity to cater to freelancers, SMEs, and everyday Nigerians seeking accessible investment solutions.
Oluwagbenga Magbagbeola, previously the Managing Director of ARM Securities, has been appointed to lead Sycamore Investment and Asset Management Limited (SIAML), bringing over 17 years of experience in capital markets. Sycamore plans to enhance its mobile app by integrating real-time investment analytics and AI-driven portfolio management, as well as offering a multi-currency wallet for investments in various currencies.
Onyinye Okonji, co-founder and CCO of Sycamore, emphasized the importance of addressing gaps in Nigeria’s investment market: “Traditional asset management has remained out of reach for many Nigerians. Our goal is to change that.” The company anticipates that its asset management division will significantly contribute to its revenue through management fees and performance incentives, although specific financial forecasts remain undisclosed.
In addition to regular asset classes, Sycamore intends to introduce alternative investments such as Real Estate Investment Trusts (REITs) and a USD-denominated product soon. This strategic direction positions Sycamore to effectively compete within a market rich in digital investment options, appealing to retail and institutional entities alike.
Although primarily recognized for its lending operations, Akin-Moses asserts that asset management is a key growth area for Sycamore. “We’re democratizing access to wealth management solutions that can help more people invest in their desired lifestyle and future financial security,” he remarked. In essence, Sycamore aims to become a comprehensive resource for Nigerians seeking to borrow, invest, and cultivate their wealth, expanding its offerings one investment product at a time.
Sycamore’s acquisition of the SEC fund manager license represents a pivotal expansion from its core lending operations into the asset management sector. With a focus on accessibility for a broader demographic, including freelancers and SMEs, the company aims to bridge the investment gap in Nigeria. By enhancing its mobile platform and diversifying its investment offerings, Sycamore positions itself as a significant player in Nigeria’s evolving financial landscape.
Original Source: techcabal.com
