Following this announcement, the deal is expected to boost the Group’s digital capabilities by incorporating Riverbank’s overall footprint in banking agency, social payments, and its suite of business solutions.
In addition, the KCB Group will acquire up to 75% of the shareholding in the financial technology firm in order to strengthen its distribution network across the region. At the moment, the completion of the transaction is subject to conditions that are customary for transactions of this nature, such as receipt of regulatory approvals from the Central Bank of Kenya, among others.
According to the official press release, the acquisition will also see KCB tap into Riverbank’s capabilities in payment ecosystems and non-banking offerings, including capability building, networks, and marketplace tools. At the same time, through the use of Riverbank’s technology platform, `Zed 360`, KBC Group is set to provide its SME and MSME customers with business management products, such as financial reporting, inventory management, and payroll management, which will make their financial operations more secure and efficient, as well as improve visibility and deliver informed decision making for both the customer and the bank.
In addition, Riverbank will also offer its other solutions, including the Swipe platform for agency banking services, Zizi for revenue collection, and CheckSmart for social payments. Both companies are set to continue to focus on meeting the needs, preferences, and demands of clients and users in an ever-evolving market, while prioritising the process of remaining compliant with the regulatory requirements and laws of the industry as well.
The acquisition represents an important part of an ongoing strategy by KCB to increase the development of digital MSME offerings, focusing on secure transactions and payment services, instant digitised lending, as well as the provision of business management tools and offering non-banking solutions, such as business training and marketplace presence for customers. At the same time, the transaction will help the KCB Group to accelerate its strategy of interconnecting with partner platforms and fintechs in order to offer services such as virtual wallets and payment APIs.
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