We often get to speak with a lot of lenders who also want to accept savings, investments, or contributions as part of their Lendsqr tech stack.
While Lendsqr is primarily designed for lenders, the platform is also enabled for lenders to take on deposits, contributions, and investments. Each of these activities of taking money have subtle differences.
Deposits are money that customers can place with banks and are required to be returned to these customers upon demand. Consequently, these are insured by the Nigerian Deposit Insurance Corporation up to the tune of N250,000 as of July 2023. Banks can take funds from any member of the public who has accounts with them.
Contributions are money that members of cooperatives pool together with their cooperatives. Cooperatives are only allowed to take funds from their members only.
Investments are funds that customers place with banks, finance houses, and asset management companies. Investors are required by law to be smart enough to know that their investments may sometimes not yield the gains they wanted. Sometimes investments can be totally lost.
To accept deposits, contributions, or investments on the Lendsqr platform, you must be licensed to do so.
The following is our guide around this:
- Banks, MFBs can take deposits (which is insured by NDIC)
- Finance houses can take investments
- Cooperatives can take contributions from members
- Money lenders cannot take investments or deposits
- Asset management firms can take investments
As part of our KYC and onboarding process, you must have a valid and current license to accept funds from the public.
