A Frankfurt Stock Exchange-listed company, MyBucks, has taken over the Kenya and Tanzania businesses of Opportunity International, a micro lender, after a buy out worth Sh250 million.
The take over followed a share purchase agreement signed between the two companies last year.
MyBucks intends to ride on Opportunity International’s network to integrate digital and mobile banking technology to reach people in remote areas. The firm has now increased its footprint to 11 African markets after completing acquisitions in Kenya, Tanzania and Mozambique. With an aim to reach 460 million unbanked Africans.
MyBucks’ plan is to spread its lending business to more African countries by employing technology to bridge the gap between virtual and traditional banking.
“The partnership allows us to actively pursue virtual financial inclusion across the continent, where digital and mobile banking are the only realistic path to banking the unbanked and under-banked. The introduction of Fintech in these markets will enable faster, more efficient and less expensive access to financial services for clients,” said MyBucks chief executive officer Dave van Niekerk.
The aid organisation will be a minority shareholder in MyBucks where it will retain one board seat at the parent level and another on the board of the Tanzania and Kenya units.
MyBucks, is a FinTech company with a broad portfolio of virtual banking products which includes lending, insurance and banking, and is supported by services such as mobile banking, credit reports with credit education features, financial budgeting, and emergency cover through insurance.
While Opportunity International is an aid organisation that gives funding to businesses that are regarded too small by traditional banks to qualify for credit.