Piggyvest reassures users of the security of their funds in the wake of rumours of a N2 billion investment loss
Piggyvest reassures users of the security of their funds in the wake of rumours of a N2 billion investment loss
With news of its loss of N2 billion in investor funds to a fraudulent investment scheme spreading, Piggyvest, an online savings and investing platform has assured its users that their funds are 'safe and secure.'
Piggyvest and several other prominent Nigerian organizations were accused of investing in an allegedly fraudulent company called Imagine Lenders, according to an Instagram user going by the handle @ trapselena_.
Ajetunmobi is run by Bamise Samson Ajetunmobi and his wife, Elizabeth, who have both been declared wanted in connection with a fraud investigation.
As is always the case with rumours, this one spread quickly across social media, causing widespread panic among its followers.
The company, however, reacted quickly, posting a statement on all of its social media accounts, assuaging customers' concerns and assuring them that their funds were safe.
"Please be aware that Piggyvest will never, under any circumstances, put a user's funds at risk. All funds held by Piggyvest users are kept completely safe and secure at all times. There has been no loss of user funds in any way, and there will be no loss of user funds in any way in the future "Part of the statement is as follows:
The statement did not specify whether the investment platform had actually made such a bad investment, but it was sufficient to calm the nerves of those who were panicking about it.
What level of security does Piggyvest provide?
Founded by Somto Ifezue, Odunayo Eweniyi, and Joshua Chibueze in 2016, Piggyvest is a leading fintech company in Nigeria, with a global presence. Last year, it repaid NGN90 billion ($220 million) to users, bringing the total number of users to approximately 3 million.
Piggyvest has been mentioned in financial rumours on a number of occasions. Therefore, its communications and public relations teams are frequently placed in situations in which they must exert control for the benefit of customers and other stakeholders. And they've always performed admirably enough to earn the trust of their customers.
Is it really necessary to be concerned if a startup suffers a significant loss of investor funds, even if this is the case? Can you tell me how much backup Piggyvest needs in order to survive a loss of this magnitude and ensure that customers are not inconvenienced?
A microfinance institution regulated directly by the Nigerian Central Bank, with funds insured by the Nigeria Deposit Insurance Corporation, Piggyvest is headquartered in Lagos, Nigeria.
In Nigeria, the Nigerian Deposit Insurance Corporation (NDIC) is responsible for insuring all deposit liabilities of licensed banks and other deposit-taking financial institutions, including thrifts. Under Section 15 of the NDIC Act, 2006, financial technology companies that obtain and save money deposited by Nigerian consumers, such as public sector banks, are required to register with the NDIC.
Additionally, Piggyvest states that all funds saved on its platforms are held by AIICO Capital, a Nigerian asset management company that has been registered and licensed by the Nigerian government.
Is there, in fact, a reason to be concerned? Most likely, this is not the case. The constant exposure to financial rumours, on the other hand, can become tiresome for some users.
This is not within the control of the fintech company, as it has no control over what people say about it in the first place. It is necessary for them to continue to respond whenever such rumors surface because they are entrusted with the security of millions of people's funds.
