Low-ticket investment product to deepen savings culture

Standard Chartered Bank has teamed up with Sanlam Investments to promote a savings culture with a new low-ticket Money Market Fund.

With the new “SC Shilingi Funds”, clients can invest directly on the bank’s app with as low as Sh1,000, earn competitive returns and withdraw anytime.

“The product will enable one to move money from your current account daily, weekly or monthly to the Money Market Fund managed by Sanlam,” said Standard in a statement.

The bank’s savings solution comes hot on the heels of a new industry report which shows that five in every ten Kenyans aged below 35 years are yet to set retirement goals.

Surprisingly, more than a third of the rich have not started saving for their retirement, according to the bank’s Wealth Expectancy Report 2021.

However, many of them, 38 per cent, expect to rely on investment income in their sunset years, suggesting a significant gap between current actions and future expectations.

“Starting late, combined with the pandemic-induced confidence gap, leaves a significant proportion of affluent consumers at risk of a shortfall for their retirement,” says the report.

The survey further notes that the proportion of affluent people with new goals was higher in fast-growing markets, including Kenya at 96 per cent, India (94 per cent) and 92 per cent in Mainland China and Pakistan. 

However, following the challenges of the past 18 months, headlined by Covid-19, the study also found that the affluent were reconsidering their priorities with the vast majority (82 per cent) having set new goals for what they want to achieve in life.

“Our research has identified that the top new goals for the affluent are focused on the future, with an emphasis on health, family and retirement, as they reconsider their priorities.”

Standard Chartered Head of Consumer, Private and Business Banking Edith Chumba said the new investment solution comes with a unique value proposition.

 “The SC Shilingi Funds will enable all our existing and new clients to achieve their financial goals by starting their investment journey, diversifying their portfolios and saving towards future needs while earning attractive returns,” he said.

Sanlam Investments East Africa Chief Operating Officer Mark Mulatya said the collaboration solidifies the company’s commitment to promoting a saving and investing culture among the youth.

“By leveraging on Standard Chartered’s SC Mobile app, we seek to reach millions of Kenyan residents who are keen on saving and growing their wealth,” said Mulatya.