Pennysmart was Launched in January 2019 after acquiring a tier-four operator license from the Bank of Ghana, which enables individuals to save at their own pace, while businesses can create third-party goals for their users to save towards. The startup was launched after the two founders, Joshua Oguntade and Yao Baku, met at the Meltwater Entrepreneurial School of Technology (MEST) in Accra and resolved to build a solution that made savings more accessible to Africans.
Users set their targets, and the schedule of contributions, and receive an interest of 12% per annum. So far, the startup has more than 300 users, each saving an average of US$90 on a monthly basis.
Joshua Oguntade says:
We noticed access to wealth management services was expensive, and the Know Your Customer (KYC) to access them was cumbersome. The mobile money market in Africa allows the layman to access financial services with the barest form of KYC – their phone number and email. The uptake has been impressive, with our offering more tailored towards a blend of lifestyle and finance. Our automated mobile money recurring payments have seen more users exceed their goals by three times to five times than they would have with a traditional bank. With our mobile money focus, we are currently integrating with other financial services in the Ghanaian market. We are planning on expanding to other African countries with heavy mobile money usage in the near future.
Pennysmart claims to be the first mobile money-centric digital wealth management service provider in Ghana and has been pleased with uptake since its launch.
Currently serving the Ghanaian market, the startup has wider continental ambitions, and is in the process of raising an angel round.