Equity Group reviews its fintech unit as executives quit
Equity Group Holdings is weighing whether to keep its financial-technology unit as a separate business after a top executive quit, adding to the loss of Finserve Africa’s head less than a month earlier, according to people familiar with the matter, as reported on Bloomberg.
The Kenyan bank is considering running Finserve as a division, less than a year after launching it as an independent subsidiary, according to anonymous industry sources in the report. The review, which may include other options, also comes as it looks increasingly unlikely that Finserve will meet a target of generating $22 million
The potential strategic shift follows the resignation of Finserve Africa’s executive director of strategic execution, Eric Karobia, who joined Airtel Africa‘s Uganda unit, where he is director of Airtel Money.
His departure comes after Microsoft announced that its former Finserve managing director Jack Ngare will be heading its African development centre in Nairobi.
Having Finserve closer to the bank may help the lender better capitalise on a venture it started in May with the country’s largest mobile-network operator, Safaricom, according to Bloomberg’s sources.
Equity Group expects to lend as much as Ksh420 million ($4.2 million) through the partnership by targeting small businesses.
