Sycamore, a Nigerian digital lender, has taken a major step in its expansion into wealth management, by securing a license from Nigeria’s Securities and Exchange Commission (SEC) to operate as a fund and portfolio manager.
Alongside this milestone, the company has appointed seasoned investment expert Oluwagbenga Magbagbeola, former managing director of ARM securities, to lead its asset management division.
With over N10 billion in assets under management, Sycamore’s SEC approval cements its position among Nigeria’s top regulated investment firms.
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The company’s CEO Babatunde Akin-Moses emphasized the significance of the license stating,
“Securing our SEC license represents the culmination of years of building institutional-grade compliance systems that protect investor interests. With this regulatory foundation and Oluwagbenga’s proven investment expertise, we’re uniquely positioned to deliver performance and security to investors navigating Africa’s complex market conditions.”
Reinforcing this commitment, Co-founder and CCO Onyinye Okonji noted,
“This milestone reflects our commitment to operating at the highest standards of financial governance. Our team underwent a rigorous evaluation process, during which regulators examined our governance structures, risk management frameworks, and client protection mechanisms.”
The company’s latest mobile app upgrade further enhances the investment experience. With an intuitive dashboard, clients can access real-time portfolio analytics, track performance, and identify growth opportunities. A key highlight is the new Multi-Currency Wallet, which enables users to manage and invest in USD, EUR, and GBP, and provides a seamless way to hedge against currency volatility.
“This is more than just fintech innovation’s about creating accessible and regulated investment solutions that empower Nigerians,” said Onyinye Okonji, Sycamore’s Co-founder and CCO.
Revenue from Sycamore’s asset management business will come from management fees and performance-based earnings, however, the company hasn’t shared specific financial targets yet.
Sycamore Expansion Into Wealth Management, A Game Changer For The Company
Securing a wealth management license from Nigeria’s SEC is indeed a game changer for Sycamore, positioning it among Nigeria’s elite regulated investment firms.
This regulatory approval offers the company a competitive advantage in Nigeria’s wealth management space, which includes the following;
1. Institutional Trust and Credibility
The SEC license signals that Sycamore meets the highest regulatory standards in governance, risk management, and client protection. In an investment environment where concerns about fraud and financial mismanagement are prevalent, being a licensed fund/portfolio manager sets Sycamore apart from unregulated competitors.
2. Ability to Offer Regulated Investment Products
With this license, Sycamore can now legally structure and manage investment funds, mutual funds, and diversified portfolios, catering to both retail and institutional investors. This broadens its product offering beyond traditional lending or savings features, allowing it to compete directly with established asset management firms.
3. Increased Investor Confidence & Market Expansion
Regulatory approval boosts investor trust, making Sycamore more attractive to high-net-worth individuals (HNIls), institutional investors, and corporate clients who typically prefer SEC-licensed investment managers. It also opens doors to partnerships with banks, pension funds, and government-backed initiatives seeking credible wealth management platforms.
4. Competitive Differentiation Through Fintech Innovation
Unlike traditional asset managers, Sycamore integrates Al-driven portfolio optimization and digital investment tools. By combining regulatory compliance with cutting-edge fintech, it offers a more dynamic, data-driven approach to wealth management, giving it an edge over conventional investment firms.
Looking Ahead
The SEC license transforms Sycamore from a fintech lender into a fully regulated investment powerhouse. It enhances credibility, expands market opportunities, and reinforces Sycamore’s fintech-driven competitive advantage.
With Al-powered wealth management, multi-currency investment options, and regulatory legitimacy, Sycamore is well-positioned to disrupt Nigeria’s wealth management space and attract a new wave of investors seeking secure and technology-driven financial solutions. Notably, with these strategic advancements, Sycamore is redefining the future of digital investing in Nigeria, offering a secure and technology-driven platform for wealth growth.