The Capital Markets Authority (CMA) has admitted Cashlet, an app-based fintech, into its Regulatory Sandbox program.
The Regulatory Sandbox was developed by the CMA to enable fintech and other companies to soft launch innovative products, solutions and services that have the potential to deepen or broaden the Kenyan capital markets.
The approval allows the startup to roll out a beta version of its innovative ‘millennial’-focused, personal finance solution to early adaptors.
Developed by Sycamore Capital Ltd, the app works in partnership with regulated fund managers in Kenya, to allow users to invest in unit trust products in a simple, fully digital and modern way.
The initial partner fund managers include ICEA Lion Asset Management, Old Mutual, and Genghis Capital.
The beta version of the Cashlet app is due to be released on the Android Playstore and Apple Store by mid-February 2022, but users can sign up now to join their Waitlist and be the first to get access.
“Our mission is to help people invest, manage and grow their money in the simplest way possible. Most industries in Kenya have been transformed by the power of technology and mobile apps.” Said Kwaku Foh, one of Cashlet’s Co-founders.
“Unfortunately, the personal finance industry, including savings and investing space, has been left behind and we are looking to change this together with our partners. We want to uberize the space” he added.
“We are building features that will ensure that we are not “just another financial app” but a one-stop-shop for you to manage, invest, and grow your money minus all the complications”.
What Product will Cashlet be Pioneering?
The mobile app is heavily invested in the personal finance space. Having identified a savings and investment gap in Kenya, Cashlet is offering personal finance tools, skills, and the knowledge required to help plug it. It delivers several layers of features and functionalities including:
- Saving and Investing Flexibility – Users can start saving and investing with as little as Ksh 500. There is flexibility to move money from an M-Pesa mobile wallet to the Cashlet app at any time with just a few simple clicks. Much like the app’s top-ups, withdrawals are also simple to initiate at any time and there are no lock-ins or withdrawal penalties.
- Life-goals creation and tracking – Cashlet enables setting up and tracking of financial goals (e.g., new house, emergency fund etc.). A user will set up a target amount and deadline for each goal and the app becomes an accountability partner. It comes with a “Group goals” feature which allows family and friends to start saving together toward shared goals.
- Market interest rates – Once a goal is set up, the app allows a user to select their preferred money market fund2 All of the products on the app are managed by licensed fund managers in Kenya. This gives the user the benefit of having their money earn returns (projected at between 8-10% per annum) so that they can achieve their goals quicker.
- Financial visibility – The app provides full and real-time transparency on how a user’s funds are performing. Cashlet gives the user a dashboard view of all goals, percentage progress made, daily interest/gains accumulated, and reminders to help stay on course.
- Expert support – Cashlet’s in-app live chat support gives users access to a knowledgeable support team. Users can ask for tips on unit trusts and other financial products and seek advice on personal finance topics.
Cashlet joins 13 other fintech platforms, that have been admitted into the CMA Regulatory Sandbox program since July 2019 to pioneer various investment products, tailor-made for the local market.