Opay, PalmPay, Cowrywise, Others Fintech Firms Send Messages on New Interest Rates on Savings

• Financial technology firms have hiked interest on savings as the Central Bank of Nigeria raised MPR by 400 basis points
• The fintech firms sent messages to their customers telling them they could earn 14% on their savings
• The development comes as Nigerians rush to lending platforms as the cost of living skyrockets in the country due to inflation

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Financial technology companies in the digital savings ecosystem have begun raising interest rates following the Monetary Policy Rates (MPR) hike by the Central Bank of Nigeria.

The companies announced a 22.75% hike in interest on savings as the CBN hiked MPR to reign in inflation in the country.

Companies send emails to customers

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Fintechs like Cowrywise notified their customers about the new interest rates via email, saying that savers can earn up to 14% per annum on savings on their platform.

The company said:

“We are thrilled to inform you that we have increased our interest rate on saving plans! Earn up to 14 per cent per annum on your rolled-over or new savings plan,” Cowrywise said. Previously, their interest rates were around 8 per cent.

“Please keep in mind that we do not control market rates; when we experience a decrease, this will also reflect in our interest rates,” it added.

More Nigerians borrow from lending apps

BusinessDay reports that digital lenders plan to hike lending rates in response to CBN’s action.

Online lending has grown astronomically in Nigeria as citizens battle high living standards.

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Data from the CBN says that between January and September 2023, consumer credit increased by N740 billion to N3,05 trillion.

A recent Piggyvest report said four out of every 10 Nigerians are in debt, with 26% owing loan apps.

Also, Nigerian banks like Zenith Bank, GTB, and Stanbic IBTC have increased their lending rates following the MPR hike.

Zenith, GTBank, and others hike lending rates

Legit.ng reported that Nigerian banks have begun increasing their lending rates after the Monetary Policy Rate (MPR) hike by the Central Bank of Nigeria (CBN).

Analysts believe the development will see existing loan facilities paying more due to the record hike by the CBN.

Nigeria’s largest bank by market capitalisation, Zenith Bank, increased its rate by 500 basis points to 30% from 25%, effective March 12, 2024.

Source: Legit.ng