Nigerian bank Sycamore gains SEC license for asset management expansion
Nigerian digital lender Sycamore, known for managing ₦10 billion in assets, has recently obtained a fund manager license from the Securities and Exchange Commission (SEC). This development marks a strategic shift for Sycamore as it ventures into the realm of fund and portfolio management, expanding its services beyond traditional lending. With the aim of meeting the increasing demand for accessible investment opportunities among both retail and institutional investors in Nigeria, Sycamore is set to offer diverse investment portfolios comprising stocks, bonds, and money-market instruments in local and foreign currencies.
The decision to diversify its business model was primarily influenced by customer feedback, as many of Sycamore’s 300,000 clients, including freelancers and small to medium-sized enterprises (SMEs), have expressed a keen interest in having easy access to investment options. According to Babatunde Akin-Moses, the CEO of Sycamore, the journey towards securing the SEC license was a meticulous process involving the establishment of robust institutional compliance frameworks. He emphasized that this strategic business expansion is intended to complement Sycamore’s existing lending operations rather than replace them.
Nigeria’s investment landscape is currently dominated by a few established players, such as ARM, Stanbic IBTC, and FBNQuest, as well as emerging fintech firms like Bamboo and Rise. While these platforms have made wealth management more inclusive, they primarily cater to high-net-worth individuals or digitally savvy retail investors. Sycamore aims to fill the gap by targeting freelancers, SMEs, and ordinary Nigerians who lack straightforward investment avenues. To spearhead its asset management division, Sycamore has enlisted the expertise of Oluwagbenga Magbagbeola, a seasoned professional with over 17 years of experience in the capital markets.
In a bid to enhance the investment experience for its clients, Sycamore is planning to launch an upgraded mobile application equipped with real-time investment analytics and AI-driven portfolio management capabilities. The app will also feature a multi-currency wallet, enabling users to invest in various currencies, including USD, EUR, GBP, and NGN. By introducing these enhancements, Sycamore is aligning itself with the trend observed among other Nigerian tech investment firms like Bamboo and Rise, which are dedicated to expanding wealth management services to the younger demographic.
Looking ahead, Sycamore anticipates that asset management will become a key revenue driver for the company, generating income through management fees and performance-based incentives. Although specific growth forecasts have not been disclosed, Sycamore intends to secure additional funding in late 2025 or early 2026 to support its expansion plans across Africa. In addition to traditional asset classes, the company aims to introduce alternative investment options, starting with Real Estate Investment Trusts (REITs) and a USD-denominated investment product in the near future.
Despite its primary reputation as a lender, Sycamore’s foray into asset management signifies a strategic move towards democratizing access to comprehensive wealth management solutions. By positioning itself as a holistic financial services provider, Sycamore is poised to assist Nigerians in achieving their financial goals, one investment product at a time.