Nigerian fintech firm Trove Finance has announced a significant strategic move by acquiring the SEC-licensed broker-dealer, UCML Securities Limited. The acquired entity has been rebranded as Innova Securities Limited and will now operate as Trove's fully owned brokerage arm. This acquisition marks a pivotal step for the wealthtech company, enabling it to bring its brokerage operations in-house and deepen its control over the entire investment lifecycle for its users.
A Strategic Shift Towards In-House Brokerage
Since its inception, Trove has operated by partnering with third-party licensed brokers to provide Nigerians with access to local and global markets. This model allowed the company to facilitate over $352 million in trades while remaining compliant with regulations. However, as its user base expanded, the company recognized the need for greater control to enhance its service delivery and build further trust.
According to CEO Oluwatomi Solanke, the decision was driven by a desire to innovate faster and assume direct responsibility for trade execution, compliance, and governance. Owning a fully licensed broker-dealer provides Trove with the agility to develop new features and improve the user experience. This vertical integration is a natural evolution for the platform as it scales its operations and responsibilities.
The Significance of Innova Securities
Innova Securities Limited has a rich history within Nigeria's financial sector, originally established as Union Stockbrokers, the brokerage arm of Union Bank. It later operated as UCML Securities before its acquisition by Trove, bringing decades of regulatory experience. The firm is licensed by the Nigerian Securities and Exchange Commission (SEC) and is a member of the Nigerian Exchange Group (NGX) and the NASD OTC Securities Exchange.
By taking full ownership, Trove can now directly manage trade execution, settlement timelines, and regulatory reporting for Nigerian equities. This move is expected to improve efficiency, enhance transparency, and strengthen governance controls across the platform. The acquisition aligns Trove with the operational structures of leading global investment platforms, reinforcing its commitment to security and best practices.
Impact on Trove's User Base
The transition will be managed in a phased approach to ensure a seamless experience for all customers. For new users, Innova Securities will immediately serve as the broker of record for all Nigerian stock trades. This ensures that from day one, their transactions are handled directly through Trove’s secure and compliant infrastructure, providing greater accountability.
Existing user accounts that were opened under previous third-party partners, such as ARM Securities and Sigma Securities, will remain with those partners for the time being. Trove has confirmed that these accounts will be gradually migrated to Innova Securities over time. This methodical transition is designed to maintain service continuity and prevent any disruption to trading activities for its established user base.
Broader Implications for Nigerian Fintech
Trove's acquisition reflects a growing trend of consolidation and vertical integration within Nigeria's dynamic fintech ecosystem. As startups mature, many are seeking to own critical parts of their value chain to improve service delivery and expand their offerings. This strategic direction allows companies to build more resilient and comprehensive platforms, ultimately benefiting the end consumer through enhanced reliability and innovation.
Having pioneered features like fractional investing and multi-market access in Nigeria, Trove is now better positioned to accelerate its product development. Owning its brokerage removes dependencies on third parties, giving the company the flexibility to introduce new services more rapidly. This milestone solidifies Trove's standing in the market and signals its long-term commitment to building a stable and innovative investment platform for Africans.
In conclusion, Trove's acquisition of its own SEC-licensed broker-dealer is a landmark achievement that strengthens its regulatory foundation and enhances its operational independence. This strategic investment underscores the company's dedication to providing a secure, transparent, and world-class investing experience. As Trove embarks on this new chapter, it is poised to drive further innovation and solidify its leadership in democratizing investment access across the continent.