Add Row 
Add 
Nigerians Seek Better Investment Platforms Amidst Digital Struggles
In a striking shift within Nigeria's investment landscape, everyday retail investors have recently outstripped institutional investors in terms of market participation. In the first quarter of 2024, retail investors captured an astonishing 1.1% more of capital market investments compared to their institutional counterparts, indicating a burgeoning interest in wealth creation among ordinary Nigerians. However, a new report from product research firm Check highlights a significant setback: 80% of retail investment platforms in Nigeria currently don’t meet global usability standards. Users are confronted with slow, clunky interfaces that deter them from legitimate platforms, compelling them to look elsewhere, often into riskier territories.
Clunky Experiences Driving Investors Away
The report reveals a concerning trend where these sub-par platforms contribute to financial losses among Nigerians. In two short years, an estimated ₦90 billion has been lost to Ponzi schemes, with a troubling total exceeding ₦1 trillion over the past quarter-century. This staggering figure underlines the repercussions of inadequate investor education alongside poor digital experiences, which regularly fail to engage retail investors effectively.
The Cost of Poor Usability in Investment Apps
According to Lanre Wright, Check's Head of Innovation and Growth, the future of the investment market depends heavily on the evolution of seamless, mobile-first platforms that focus on user experience. Investors require speed, simplicity, and better educational content to navigate this evolving landscape. An audit of ten do-it-yourself (DIY) investment platforms revealed that just two had passed the global usability benchmark score, exposing severe gaps such as cumbersome Know-Your-Customer (KYC) processes and overwhelming interfaces.
The Hurdle of Active Participation in Nigeria's Capital Markets
Despite the increase in retail trading volume, which skyrocketed from ₦618.79 billion in 2020 to an impressive ₦2.31 trillion by 2024, active participation is dismally low, with fewer than 500,000 out of 3 million registered investors actively trading. This discrepancy points to a pivotal challenge faced by traditional capital market platforms as they grapple to captivate a growing demographic; meanwhile, platforms like PiggyVest and various crypto applications boast millions of engaged users. Nigeria's capital markets need a transformation focused on enhancing usability and building user trust.
Add Row 
Add 
Write A Comment