KCB has announced the acquisition of 75% stake in Riverbank Solutions, a Nairobi-based FinTech company. This will help the bank strengthen its regional distribution network. The deal amount has not been revealed and the transaction is still awaiting regulatory approval by the Central Bank of Kenya. Once the transaction is completed, Riverbank will become a subsidiary of KCB Group Plc.
In a statement, KCB said the deal will boost its digital capabilities by bringing on board Riverbank’s footprint in banking agency, social payments and business solutions. Riverbank has a presence in Kenya, Uganda and Rwanda.
This acquisition will help KCB tap into Riverbank’s expertise in the payment ecosystems and non-banking offerings.
Through Riverbank’s technology platform, ‘Zed 360’, KCB will provide its SME and MSME customers with business management tools such as inventory management, financial reporting and payroll management which will ease their financial operations, enhance visibility and empower- informed decision-making for both the customer and the Bank. Riverbank also offers three other solutions namely Swipe platform for agency banking services, Zizi for revenue collection and CheckSmart for social payments.
“We are actualizing new digital capabilities to deliver customer-centred value propositions through technology to guarantee seamless, reliable, secure, and innovative solutions for our customers. Across the region, payments are expected to have the fastest growth, suggesting an opportunity to innovate. That’s why we have made this strategic acquisition to enable us offer a full stack of solutions. This is a great opportunity to maximize value for our shareholders in the long-term while strengthening the competitive position for the Group,” said KCB Group CEO Paul Russo.
The acquisition is part of an ongoing strategy by KCB to increase innovation of digital MSME offerings, focusing on seamless transaction and payment services, instant digitized lending, provision of business management tools and offering non-banking solutions such as business training and marketplace presence for our customers. The transaction will help the Group accelerate its strategy to interconnect with partner platforms and fintechs to offer services such as virtual wallets and payment APIs.
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