Franc

Franc Group, operating as Franc.app, is a financial technology firm targeting the South African market with a focus on democratizing investment opportunities. The company was brought to life in 2017 by a team of co-founders including Dr. Thomas Brennan, who serves as the CEO. Brennan's background as an actuary and his previous experience building a digital insurance-in-a-box platform underscore the company's quantitative and technology-driven approach. The venture was conceived to address the significant barriers to entry for ordinary individuals in the investment landscape, such as high fees, complex products, and intimidating platforms.

The core of Franc's business model is a mobile-first application that simplifies the process of saving and investing. It operates within the wealthtech sector, providing a B2C solution for individuals who are new to investing or seeking a low-cost, accessible platform. Franc makes money by charging a minimal annual management fee of 1% of the invested capital, which is presented as an all-inclusive cost, covering asset management, platform, and transaction fees. This transparent, low-fee structure is a key component of its value proposition, aiming to build trust and attract a user base that has traditionally been underserved by established financial institutions.

Franc's product offering is streamlined into two primary investment funds: the Allan Gray Money Market Fund, characterized by its lower risk profile, and the Satrix 40, an equity exchange-traded fund (ETF) that tracks the performance of the 40 largest companies on the Johannesburg Stock Exchange. This curated selection is designed to prevent decision paralysis for novice investors. Users can start investing with as little as R1, and the platform allows for flexible contributions and withdrawals without imposing penalty fees. A notable feature is the goal-based investment functionality, which enables users to set and track specific financial objectives. Furthermore, Franc integrates with various South African banks for seamless funding of investment accounts, enhancing user convenience. In 2022, the company expanded its offerings to include a B2B service, allowing other businesses to integrate Franc's investment features into their own platforms via an API.

Keywords: wealthtech, micro-investing, financial inclusion, mobile finance, investment app, savings platform, fintech, B2C finance, asset management, South Africa