Franc, a digital wealth platform on a mission to simplify investing, is empowering South Africans to make smarter financial decisions and grow their money. Leveraging cutting-edge technology and innovative products to bridge the gap between saving and investing, the ultimate goal is to empower users to achieve financial freedom.
Helping more South Africans grow their money
In South Africa, the latest reported Household Saving Rate is -0.9%, which means that South Africans are spending more than they save. This is coupled with the fact that only 6% of the population are on track to retire comfortably, according to the 2023 10X Retirement Reality Report.
There are two big problems that have led to this state of affairs: only 42% of South Africans are considered financially literate (and this proportion is declining), and the world of saving and investing is confusing and inaccessible, often shrouded in convoluted terms and conditions.
Franc was founded by Thomas Brennan and Sebastian Patel, friends since university, to address these two problems. With Thomas’s engineering background and Sebastian’s expertise in actuarial science and investment, the duo has built Franc to be intuitive, accessible, and tailored for every user, cutting through the confusion to help users get started.
A user-friendly investment app in your pocket
Franc’s impact is most evident in its commitment to inclusivity. The user-friendly platform guides individuals in setting up goal-based investment pots through a robo-advisor – the first registered in South Africa. The goal-based approach makes it easier for them to align their savings with their big dreams, whether for personal growth, family support, or starting a business. Each investment pot is underpinned by a combination of hand-picked funds – from a money market fund to an offshore exchange-traded fund – selected for being amongst the top-performing and lowest-cost in their category.
With the goal of helping people build generational wealth, Franc also caters to invested parents who are seeking to secure their children’s future through a dedicated Child Account that is simpler and quicker to set up than many other products on the market. Their Shared Goal feature allows for collaborative saving and investing between couples, families, friends or stokvels.
The savings account, one of Franc’s top-performing products, encourages users to keep their savings separate from day-to-day banking, ensuring users can more effectively set money aside without being tempted to use those funds on a transactional level. The innovative and exciting live interest tracker allows users to see their money grow second by second.
Franc has big growth ambitions
Backed by venture builder Aions Creative Technology (which is headed by serial entrepreneur Mitchan Adams), Franc is proudly South African, and as a Level 2 BBBEE contributor and 52% Black-owned business, Franc is reshaping the financial landscape while contributing to economic transformation. With a compound annual asset under management growth rate of 70% since its inception, the platform’s scalability and user engagement reflect its success in addressing real market needs.
“We believe that every South African deserves to see their money grow and work for them. Having Aions on board as our latest investor, we hope to leverage their ecosystem of partners and resources to achieve our upcoming growth objectives”, says Sebastian Patel, Chief Operating Officer of Franc.
The investment app soon plans to expand its offering to include a tax-free savings account and retirement annuity, as well as business management tools to help sole proprietors manage their finances better. This funding will also enable Franc to scale its impact further, refine its technology, and introduce new features to meet the evolving needs of its users.
Franc’s ultimate goal is clear: to have their app in every pocket, providing seamless access to personal wealth management. By creating a 360-degree view of wealth management that addresses personal, family, and community needs, Franc is transforming the financial landscape and proving that investing does not have to be intimidating.
