Kenya’s KCB Bank completes IT infrastructure migration to tier III data centre
KCB Group, Kenya’s largest bank with a market capitalisation of $963.3 million (KES 124 billion), has completed the migration of its IT infrastructure to iColo, a tier III data centre. The migration from on-premise infrastructure to iColo’s facilities in Karen and Gigiri, Nairobi, began in 2022. Two people familiar with the matter told TechCabal that the migration was motivated by a need to control costs. The bank had been incurring millions of shillings on power, cooling, and uptime for its in-house data centre. It is unclear what cost savings KCB will achieve through this colocation migration since no specific projections or estimates have been provided. KCB declined to comment on this story. Before the move to colocation, KCB ran all its services on-premises. However, some services, such as Exchange, which offers currency exchange, online trading, and international money transfers, are hosted on Microsoft Azure, and plans are in place to move other services to AWS. “This transition involved moving to a professionally managed colocation facility,” one person familiar with the migration process and who asked not to be named so he could speak freely told TechCabal Colocated data centres, like iColo, provide shared spaces within larger facilities where multiple companies lease space. This allows such companies to benefit from shared services and infrastructure. “Colocation offers a more cost-effective solution compared to building and maintaining an independent data centre. Banks can achieve economies of scale by sharing common resources,” a banking executive, who also wished not to be named, told TechCabal. KCB isn’t the only Kenyan bank to choose this model. According to an industry insider, Equity Bank and NCBA have been using colocated facilities over the last few years to manage costs, signalling a growing trend among local banks to favour off-site data centre solutions. Kenyan banks have also began upgrading their core banking applications. In October, Stanbic upgraded its core platform, Temenos, to version R24. KCB uses Temenos for traditional banking and recently updated it to version R21 for its Rwandan operations. However, KCB uses Sopra, a different core system for digital banking services.
Read MoreTechstars Lagos shuts down after two years and 24 investments
Two years after launching its accelerator program in Nigeria, ARM Labs Lagos Techstars, also known as Techstars Lagos has shut down. It will also discontinue the third cohort program, which began in March 2024. Techstars’ global Chief Brand and Communications Officer, Matthew Grossman, confirmed the shutdown in an email. “Techstars’ partnership with ARM Labs has ended, and we will not proceed with a third ARM Labs Lagos Techstars Accelerator Program. The first two cohorts featured outstanding companies and founders, supported by a dedicated group of mentors,” Grossman said. The 24 founders and their companies funded by ARM Labs Lagos Techstars will remain Techstars portfolio companies and continue to have access to and support from the global Techstars network. “We remain optimistic about collaborating with the local startup community to maintain our presence in this vibrant innovation hub,” Grossman said. Techstars, a global venture capital accelerator with over 4,500 portfolio companies, partnered with Nigerian-based ARM Labs to bring its three-month program to Lagos for the first time in December 2022. The program, ARM Labs Lagos Techstars, ran two cohorts, bringing 24 startups under Techstars’ portfolio. Each startup received up to $120,000 in funding. By 2024, Techstars had invested about $2.4 million in startups, including Surge Africa, Rana, PressOne Africa, Jump n Pass, GetEquity, Beauty Hut Africa, Oystr Finance, Keza Africa, Keble, and Flick, among others. “I will continue to operate in the African venture ecosystem,” wrote Managing Director Oyin Solebo in a farewell letter dated September 20, 2024. Program Manager Oluwadunmi Fanibe moved on in August to join Google as a Mentor.
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FIRS job application 2024 now officially open – Apply here now
The Federal Inland Revenue Service (FIRS) has officially launched its job application portal for 2024 as earlier announced. With a vision of empowering Nigeria’s workforce and boosting its tax administration, FIRS is actively seeking candidates for Tax Officer positions, Officer I and Officer II, across several Nigerian states. Below, we outline all essential details including the eligibility criteria, application locations, and the steps for successfully applying. Available Positions and Locations Position titles: Officer I and Officer II in Tax Administration. Locations: Applications are open for roles in Abia, Anambra, Ebonyi, Enugu, Imo, Ekiti, Lagos, and Oyo states. Candidates should select their preferred location during the application process. Eligibility criteria for FIRS job application 2024 Age Limit: Candidates must be aged 27 or younger by 31st December 2024. NYSC Completion: Candidates must have completed the National Youth Service Corps (NYSC) programme no later than 31st December 2021. Required qualifications for the FIRS job application 2024 To be eligible for the FIRS 2024 recruitment, applicants need to meet educational requirements and possess specific academic qualifications: A Bachelor’s Degree or Higher National Diploma (HND) in First Class or Second Class Upper Division. Accepted fields include, but are not limited to, Accounting, Actuarial Science, Business Information Systems, Computer Science, Economics, Engineering, Law, Management, Mathematics, and Visual Arts. Additional qualifications such as relevant master’s degrees and professional affiliations (e.g., ICAN, ACCA, ANAN, COREN, NSE) are considered advantageous. Application Process The FIRS job application 2024 process is straightforward, ensuring accessibility for all interested candidates: Application portal: Candidates should visit the FIRS official recruitment portal at firs.gov.ng/careers to submit their applications. The portal is active from 12:00 am on 2nd November 2024. Step-by-Step Guide: Register on the FIRS portal, complete the application form, and upload relevant documents as required. Candidates must choose only one location from the specified states for their application. Important considerations Fraud prevention: FIRS urges candidates to avoid unofficial recruitment channels and cautions against fraudulent platforms. Applications are only accepted on the official FIRS website. Inclusivity: FIRS encourages women, minorities, and persons with disabilities to apply, aiming for a diverse and inclusive workforce. Placement flexibility: While candidates can apply for a specified location, FIRS may place successful candidates in any of its operational locations across Nigeria. What to expect after application FIRS will shortlist candidates who meet the specified requirements. Shortlisted individuals may undergo further assessments, including aptitude tests, interviews, and medical exams. This rigorous selection process ensures that only qualified and capable individuals join the FIRS team. Final thoughts on FIRS job application 2024 The FIRS job application 2024 presents an exciting opportunity for young Nigerian professionals. With roles across diverse locations and a streamlined application process, FIRS aims to attract a broad talent pool committed to enhancing Nigeria’s tax administration system.
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👨🏿🚀TechCabal Daily – Compliance hires are hot commodity
In partnership with Lire en Français اقرأ هذا باللغة العربية Welcome to November! On Thursday, a scientist demonstrated how to teach a computer to “smell” by replicating the scent of an orchid. Now, Meta is developing a robot hand that can “feel” touch. Unlike most devices, this robot hand can sense and measure tiny shifts in pressure from any direction on its fingertip, capturing how it deforms when pressed, tapped, or moved across surfaces. This advanced sense of touch could help scientists create more realistic and responsive robots. It’s increasingly looking like light years of robo-technology happening in 2024 already. In other news, OpenAI launched ChatGPT search, a feature that provides users with “timely answers” by searching for information online. Nigerian fintechs ramp up compliance hiring CBN wants banks to seek approval before changing CBA Kenya’s largest bank KCB completes moving customer data offline Zenith Bank joins the trillion-naira club Funding Tracker World Wide Web 3 Jobs Banking Compliance officers are the new gold in Nigeria Image Source: Google After the Central Bank of Nigeria (CBN) paused new account openings in April, Kuda Bank, Moniepoint, OPay, and Palmpay have been on a hiring spree, poaching fraud monitoring and compliance analysts from banks and rivals to beef up their compliance and fraud teams. Moniepoint has expanded its transaction monitoring team by five and hired at least a dozen compliance employees since May. They also poached two seasoned pros from OPay and another from Flutterwave. OPay also grew its legal team, and Palmpay welcomed six compliance staff, including a senior manager with over a decade at Union Bank. Kuda has onboarded three compliance analysts and a manager from the Nigerian Inter-Bank Settlement Scheme (NIBSS). These hirings mark a shift from the industry’s previous stance, where compliance was often seen as a pesky hurdle to rapid growth. Before the ban, fintechs chased swift customer acquisition, sometimes at the expense of stringent Know Your Customer (KYC) protocols. But with the CBN’s crackdown, which came with a stern warning about KYC measures, the fintechs have hired at least thirty compliance staff between them to increase how they monitor transactions and manage customers. “The central bank wants fintechs to be more compliant, and they need more hands to make that happen,” someone familiar with the hiring patterns of the fintechs told TechCabal. It’s not just about appeasing regulators; investors are also keen on ensuring their crown jewels are not wading into murky regulatory waters. Will this compliance overdrive be enough to reduce fraud and appease regulators? Only time—and perhaps a few more hires—will tell. For now, compliance officers are the new must-have employees in Nigeria’s fintech industry. Read Moniepoint’s Case Study on Funding Women After losing their mother, Azeezat and her siblings struggled to keep Olaiya Foods afloat. Now, with Moniepoint, they’re transforming Nigeria’s local buka scene. Click here for a deep dive into how Moniepoint is helping her and other women entrepreneurs overcome their funding challenges. Banking CBN wants banks to seek approval before changing core banking application CBN chief Olayemi Cardoso/Image Source: Premium Times Nigeria If you are a bank customer in Nigeria, the last couple of months have been tough. Bank apps have struggled with service disruption and other channels inaccessible. Several banks coincidentally decided to change their core banking software around the same time. While these technological changes are necessary, they are badly timed for millions of customers. Depending on who you ask, switching a core banking software is hard and could negatively impact customers—as we have seen since the second half of 2024. Yet, there is a need to regulate the process to protect customers who have to grapple with downtimes and service disruptions. Unsurprisingly, the Central Bank of Nigeria (CBN) has now stepped in. Two people familiar with the matter told TechCabal that the CBN has directed commercial banks to get regulatory approval before changing their core banking software. The CBN has a responsibility to protect customers as the regulator, leaving many to wonder why it took so long before it intervened. Some have also questioned why the regulator didn’t fine the banks involved. Given how the last few months have been, the directive is a much-needed succour for customers. Interesting days ahead. Issue USD and Euro accounts with Fincra Whether you run an online marketplace, a remittance fintech, a payroll, a freelance platform or a cross-border payment app, Fincra’s multicurrency account API allows you to instantly create accounts in USD and EUR for customers without the stress of setting up a local account. Get started today. Banking Kenya’s KCB completes customer data transfer to an off-site facility Image Source: Bloomberg Kenya’s largest bank, KCB Group, has officially completed its data migration to iColo, a local data centre. This strategic move, which took two years to finalise, aims to reduce operational costs by shifting its data, including account and transaction details, from its on-premise infrastructure to iColo’s facilities in Karen and Gigiri, Nairobi. While KCB didn’t share specific cost savings projections, industry experts believe that colocation offers a more cost-effective solution compared to building and maintaining an independent data centre. By sharing common resources, banks can achieve economies of scale. KCB isn’t alone in this trend. Other Kenyan banks, such as Equity Bank and NCBA, have also adopted colocation strategies to manage costs. Additionally, Kenyan banks are actively upgrading their core banking applications to enhance efficiency and customer experience. Stanbic Bank recently upgraded its Temenos platform, while KCB has updated its Temenos system for its Rwandan operations and uses Sopra for its digital banking services. Introducing Paystack Transfers in Kenya Paystack merchants in Kenya can now send single and bulk transfers to any Kenyan bank or MPESA account (including customer wallets, Paybills, and Tills) Learn more → Banking Zenith Bank joins the trillion-naira club Image Source: Google Zenith Bank reported a record-breaking pre-tax profit of ₦1 trillion ($609 million) for the first nine months of 2024, marking a 98.57% increase from the ₦505 billion ($307 million) the bank reported
Read MoreCBN directs commercial banks to secure approval before changing core banking application
Nigeria’s Central Bank (CBN) has directed commercial banks to get regulatory approval before changing their core banking software, according to two people familiar with the matter. The directive is in response to the impact of the ongoing technology changes by some of the country’s biggest banks. Since the second half of 2024, at least four commercial banks have changed their core banking applications. Those changes, driven by costs and a need for customisation, have left millions of customers unable to access banking services. Many of those customers have shared their complaints on social media platforms. While these banks say they’re working to resolve the issues, the regulator’s intervention will intensify the pressure on them. “The CBN isn’t happy with how customers have been complaining about banks in the past couple of months. That’s why it is stepping in,” one of those people said. The CBN’s directive is consistent with its responsibility to protect customers as the regulator, another person familiar with the matter said. In February 2024, the CBN released a revised draft of the reviewed 2019 consumer protection regulations. Yet banking experts and customers have questioned the regulator’s long silence over the issue, with some expecting the regulator to fine the banks like in other climes. In 2012, Royal Bank of Scotland (RBS) was fined £56m after a botched system upgrade left over 6 million customers unable to access their accounts. “I am still surprised that the CBN hasn’t taken regulatory action against any other banks. They should have fined them,” said one banking expert who asked not to be named. One theory is that the delay in the CBN’s intervention was due to the absence of a specific regulatory framework for core banking platform changes, one person familiar with the matter said. The new directive hopes to fix that.
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Only 1 in 100 Nigerians spends ₦1 million ($609) monthly, Piggyvest 2024 report shows
New data from savings company Piggyvest confirms that Nigerians’ purchasing power has significantly reduced in the past year. Nigerians are financially worse off than a year ago across several metrics like income, savings, spending, and emergency funds, as new data from Piggyvest highlights the impact of inflation on Nigerian pockets. Piggyvest’s report, which surveyed over 10,000 Nigerians, comes as Nigeria’s headline inflation slowed to 32.15% in August 2024, but well above 2023’s peak of 25.08%, largely due to economic reforms under President Tinubu. This inflationary environment has left sixty-five percent of Nigerians with no income or less than ₦100,000 ($61) monthly—a figure that rises to 86% for those earning below ₦250,000 ($151) monthly. The number of Nigerians with multiple income sources also dropped by 10% compared to Piggyvest’s 2023 report. “It’s like peanuts these days, earning ₦100,000. I find myself stocking money to get things for myself that I comfortably would if I did so a year ago or two years ago,” a salary earner in Enugu, an Eastern Nigerian city, told Piggyvest. Given how little the average Nigerian makes monthly, it’s unsurprising that 68% spend less than ₦100,000 each month, highlighting limited disposable income. When monthly expenditure rises to ₦500,000 ($303), only 3% spend above that. While spending on food has decreased from last year, it remains the largest expense for most Nigerians. Transport costs have now surpassed utilities and bills, ranking second after the removal of fuel subsidies. The number of Nigerians that save money has fallen from 64% in 2023 to 57%, with 10% of those saving money occasionally. “I used to save, but the increase in school fees, electricity tariffs, and even the cost of fuel has made it very difficult to continue,” a civil servant told Piggyvest. Emigration, the third most common saving goal on Piggyvest in 2023, has dropped to eighth place this year as two currency devaluations have led the naira to lose nearly 70% of its value against the dollar, significantly increasing travel and relocation costs. The number of Nigerians with emergency savings fell by 5%, with over two-thirds reporting they have no savings for unplanned expenses without incurring debt. Just 15% of Nigerians increased their savings over the past year, while 19% who had emergency savings no longer do. “We encourage all who engage with the data and insights from the Piggyvest Savings Report 2024 to make qualitative assessments of the shifts in consumer behaviour and attitudes around spending, saving, entrepreneurship and investing and respond accordingly,” Piggyvest said in a statement. You can read the report here.
Read MoreNigerian fintechs ramp up compliance hiring months after customer onboarding ban
Kuda Bank, Moniepoint, OPay, and Palmpay have responded to the central bank’s April ban by expanding their compliance and fraud monitoring teams, poaching talent from commercial banks and other fintechs. Since May, Moniepoint has expanded its transaction monitoring team, hiring five people. Two of those hires were long-time OPay employees with at least three years experience at the fintech, while another joined from Flutterwave. The fintech also added at least six fraud and compliance team members in 2024 and a team lead, bringing a decade of experience in Nigeria’s banking industry. Since the ban, Kuda has hired three compliance analysts, a Nigerian Inter-Bank Settlement Scheme compliance manager, and two fraud team members. OPay added four members to its legal team this year, while Palmpay hired six compliance staff, including a senior manager with over a decade of experience at Union Bank. This is a shift from an industry-wide stance that once saw compliance as hindering growth. Before the ban, fintech’s risk analysis skewed towards minimal compliance staffing and relaxed customer KYC requirements for account opening, but a December 2023 central bank guideline and the April ban have changed that stance. Regulators, worried about the speed at which fintech accounts could be opened, banned the fintechs from opening new accounts and gave the fintechs a list of conditions that included restricting peer-to-peer crypto transactions and mandating KYC for all tiered accounts. People familiar with the matter told TechCabal that the increased focus on compliance was part of the conditions for lifting the ban and aligns with the Central Bank of Nigeria’s (CBN) tougher stance on fintechs. The fintechs were asked to improve transaction monitoring, introduce proper customer management solutions, and tighten Know Your Customer (KYC) requirements. “Compliance has always been a major part of our financial inclusion efforts, and as such, we knew that coming into a new year in 2024 and off the back of a new government, there was always going to be improved regulatory scrutiny,” a person familiar with the hiring patterns of the fintechs told TechCabal. As Nigerian fintechs became ubiquitous and influential, they faced criticism for lax KYC measures and a perception that they help bad actors get away with fraud. “Customers can easily open Tier 3 accounts on fintech platforms in seconds. [The NSA] were worried that fintechs are rapid [in opening accounts] and told us to stop onboarding,” Tosin Eniolorunda, Moniepoint’s CEO, said in May. The hires should help ease regulatory tensions and mitigate fraud in Nigeria’s fintech industry as compliance teams help ensure that current and future products and services meet regulatory standards. “The central bank wants the fintechs to be more compliant, and they need more hands to make that happen. Transaction monitoring is a 24-hour job, so you need to hire many people and managers to take ownership,” one person familiar with the talks told TechCabal. A need to please investors has also played a part in the compliance staff demand, as investors want their portfolio companies to be in regulatory-safe waters. Although fintechs are ramping up their compliance teams, only time will tell if these efforts are enough to curb fraud in Nigeria’s fintech industry.
Read MoreYC-backed Bamboo expands to Canada with remittance product
Bamboo, the Y Combinator-backed investment app that allows Africans to buy and trade local and international stocks, is expanding to Canada after securing the country’s Money Service Business (MSB) licence. The company will also launch its remittance payment service, Coins by Bamboo. The product will enable diaspora money transfers to Africa, to reduce high cross-border fees through fee-free transfers and competitive exchange rates. “With many Africans now away from the continent, many want to invest back home, but complexity, high commissions and fees discourage it. A way to start is by addressing these pain points, which is why we are offering Coins” Richmond Bassey, Bamboo’s co-founder and CEO said. Bamboo’s expansion to Canada was from a business standpoint. In 2022, Nigeria was the fourth-largest immigration source country to Canada, with 22,085 Nigerians welcomed into the country. ”Based on insights, one of the countries our users have emigrated to the most is Canada with the UK on top of the list. This means more use for the app in Canada before we go into the UK and other markets,” Bassey said. Founded in 2019 by Richmond Bassey and COO Yanmo Omorogbe, Bamboo has seen some success since launching in Nigeria in 2020. In 2022, the company raised $15 million in a round led by American venture capital firms Greycroft and Tiger Global. Bamboo claims it has 500,000 users. With its remittance play, Bamboo is entering a competitive remittance market with well-established players like Grey Finance, Lemonade, Kyshi, and Nala. “The remittance market is huge, I don’t think one player can solve the problem. The difference is in the goal and what the company is trying to achieve”, Bassey added. While these companies primarily generate revenue from transaction fees and commissions which often include varying exchange rates for currency conversions, Coins by Bamboo will offer fee-free transfers and competitive exchange rates to customers. “This is just the first stage for us to solve a problem that will be useful in serving the diaspora. It is a means to an end, we are building a set of products that will support Africans everywhere. When we look at the cost and opportunities for offering Coins by Bamboo transaction-free, we are satisfied with offering the service that way,” Bassey told TechCabal. Bamboo also partnered with charitable organisations like the Women at Risk International Foundation (WARIF) and Chess2Slums, allowing users to make direct contributions via the Coins by Bamboo app. After its expansion into Ghana in 2022, the company added Nigerian stocks to its platform in May 2024. In June 2024, Bamboo commenced operations in South Africa, enabling users to invest in U.S. stocks directly from their smartphones. This expansion follows the acquisition of a financial services provider licence from the South African Financial Sector Conduct Authority (FSCA).
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👨🏿🚀TechCabal Daily – Glo’s new glow
In partnership with Lire en Français اقرأ هذا باللغة العربية Happy last day of October! TechCabal did some important reporting this month. We had a major showing in banking as we reported issues with core banking software migrations across Nigerian tier-1 banks. We delved into details on how much tier-1 banks spend on building their core banking software, the struggles they face in migrating software, and the effect on customers. We also covered how Sterling bank, which custom-built its core banking software, is now pitching the technology to other banks and fintechs. South Africa’s 2024 M&A streak also continued after Lesaka Technologies acquired Adumo. The good people of Kenya again made it clear that they do not want anything to do with the man Adani, or his group company, as “Adani must go” chants were heard during court trials for the contentious JKIA lease deal. The Adani Energy partnership, which was previously given a go-ahead, has also stalled. What will November bring? Globacom appoints Ahmad Farroukh as new CEO Wasoko-MaxAB appoints technical advisor Access Bank gets first approval for NBK acquisition World Wide Web 3 Events Telco Globacom appoints industry veteran Ahmad Farroukh as new CEO Image Source: Zikoko Memes What do you do when your boat hits a rough patch? You call on a trusted captain to help navigate the storm. Nigeria’s third-largest telecom, Globacom, is currently weathering a storm and looking for great hands to steady its ship. The telco suffered a hack that locked its staff out of all communications channels. It also saw a 69% decline in its active customers. Yet, the telco is making a concerted effort to drive a turnaround. Last week, Globacom appointed Ahmad Farroukh as its new CEO. Farroukh, who has over two decades of experience as a telco expert, has been called to steady Glo’s rocky boat. Farroukh’s telecom journey began in 1995 as CEO of Investcom Group in Lebanon. He later took on top roles at MTN Group, serving as CEO of MTN Nigeria from 2006 to 2010 and later as CEO of MTN South Africa in 2014. He also held leadership positions as CEO of Mobily in Saudi Arabia and most recently, at Smile Communications Nigeria. Farroukh holds a Master’s in Business Administration and Accounting from the Lebanese American University and is a Certified Public Accountant (CPA) from New York, USA. While Globacom is yet to make Farroukh’s appointment official, people familiar with the matter say the telco has notified the Nigerian Communications Commission (NCC), The company has also appointed a new board and has gotten approval from the regulator. Read Moniepoint’s Case Study on Funding Women After losing their mother, Azeezat and her siblings struggled to keep Olaiya Foods afloat. Now, with Moniepoint, they’re transforming Nigeria’s local buka scene. Click here for a deep dive into how Moniepoint is helping her and other women entrepreneurs overcome their funding challenges. Ecommerce Wasoko-MaxAB picks technical advisor as it achieves half-unicorn status Image Source: Google Two months after finalising their landmark merger, Kenyan e-commerce firm Wasoko and Egyptian counterpart MaxAB have tapped an auto executive Mo Elshenawy to advise the combined entity’s technical teams. Elshenawy is currently President and CTO of American self-driving car company Cruise. His expertise is expected to grow Wasoko and MaxAB’s new business units and position them to optimise AI-driven credit scoring and payments technology. Like other digital lenders, offering credit needs sophisticated algorithms that evaluate customer profiles before issuing loans. These algorithms, powered by artificial intelligence, will be key for the business’s future growth, the company told TechCabal in August. The valuation of the merged entity has crossed $500 million, based on a financial report from VNV Global, one of its investors—suggesting a promising path to profitability. Although this valuation is still below Wasoko’s peak valuation of $650 million post-Series C funding in 2022, it shows the dip that saw Wasoko’s value drop to $260 million by 2023 as its core retail products business slowed. In October 2024, MaxAB’s co-founder and COO, Mohamed Ben Halim, left the company to pursue new unnamed opportunities, marking yet another change in leadership for the combined entity. Issue USD and Euro accounts with Fincra Whether you run an online marketplace, a remittance fintech, a payroll, a freelance platform or a cross-border payment app, Fincra’s multicurrency account API allows you to instantly create accounts in USD and EUR for customers without the stress of setting up a local account. Get started today. Banking Access Bank receives approval for National Bank of Kenya acquisition Image Source: Zikoko Memes Access Bank, Nigeria’s biggest bank by assets, continues to make inroads into the East African market through acquisitions. The bank has gotten the first approval from Kenya’s Competition Authority (CA) to acquire tier-2 commercial bank, National Bank of Kenya (NBK). The deal, thought to be worth $100 million, will pull through after another approval from the Central Bank of Kenya (CBK). But there is a catch: Access Bank must retain 80% of NBK’s workforce after the acquisition. Given Access Bank’s 316 employees in Kenya and NBK’s 1,384, this means that the former bank’s employee headcount is expected to reach at least 1,423. With a sharp increase in personnel costs, Access will spend more in operating expenses. Beyond personnel costs, the acquisition could also place strategic pressure on Access Bank as it works to align NBK’s operations and corporate culture with its own. Maintaining a larger workforce may challenge its operational efficiency and pose a financial strain on Access Bank, which may need to optimise costs in other areas to offset this new expense. While Access Bank is not new to expansions or having a large workforce, there is an undeniable backing that its new ventures get from the parent bank. It’s a long-haul game for Access Bank as it is acquiring NBK—a bank that is evidently larger than its Kenyan subsidiary but also more distressed. NBK has struggled to shore up its capital base to CBK’s requirements in the past. It is also
Read MoreNigerian insurtech ETAP expands into Ghana with Hollard partnership
ETAP, a Nigerian insurtech startup that raised a $1.5 million pre-seed in 2022, has expanded into Ghana, after securing an operational license from the country’s National Insurance Commission (NIC). ETAP is expanding into Ghana through a joint partnership with Ghana’s leading insurance firm, Hollard Insurance Ghana. The partnership will allow Hollard Insurance to underwrite the insurance while ETAP will provide the tech platform and run the operations. “We have partnered with Hollard because of their deep understanding of the market,” Ibraheem Babalola, ETAP CEO, told TechCabal. Launched in 2022, ETAP claims it allows users to buy car insurance in 90 seconds and file claims in three minutes. The company offers instant claim processing, customizable coverage options, and a rewards system that incentivises safe driving behavior. The insurtech also allows drivers to pay for insurance according to their needs, per trip, daily, monthly, or yearly. The business which is currently present in 12 Nigerian states expects the Ghanaian market to contribute significantly to its revenue streams. ETAP claims it has processed nearly ₦20 billion assured across its comprehensive and third-party insurance policies. While Nigeria presents a larger market, Babalola believes Ghana offers more business potential due to its higher insurance penetration rate. One in three cars is insured in Ghana, while only one of five registered vehicles is insured in Nigeria. “Nigeria has one of the highest risk environments in the world. It is less stressful to do business in Ghana. Ghana is less chaotic,” he said. The company will compete with Octamile & Redpear in Ghana and other traditional insurance companies. The Motor Vehicle Insurance market in Ghana is projected to reach a market volume of $0.66 billion in 2029. The business also plans to launch in Cote d’Ivoire to make inroads into the Francophone region.
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