Stanbic Holdings in Kenya has announced that it’s holding off on its plans to create a fintech subsidiary, despite receiving the green light from the Capital Markets Authority (CMA) to commence operational activities in the fourth quarter of 2023. The company, a member of the Standard Bank Group, didn’t provide any information regarding future plans for the subsidiary.
According to Stanbic Bank’s CEO, Joshua Oigara, who also serves in South Sudan, the board has elected to postpone its subsidiary plans after careful consideration. While the permanency of this decision remains uncertain, Oigara ensured that the creation of the subsidiary would be initiated if it’s deemed necessary, but for now, the company plans to stick with its recent decision.
Stanbic disclosed in its financial report for the year ending December 2022 that it was contemplating a partnership with or the acquisition of a fintech company or mobile network operator to significantly amplify its business operations.
In 2019, Stanbic had expressed intent to collaborate with Chinese fintech firms to bolster Sino-African trade relations. This included plans to facilitate Kenyan traders’ connectivity with quality product vendors in China and improvements in transaction processes within and outside Kenya.
The CMA had announced in 2023’s final quarter that it had granted approval for Stanbic’s request to set up a fintech subsidiary.
Standard Bank, part of the Standard Bank Group, has consistently shown interest in collaborating with fintechs, a tactic seen across its numerous subsidiaries.
An example is Stanbic IBTC Holdings in Nigeria, also a member of the South Africa-based Standard Bank Group. This subsidiary launched a fintech branch named Zest Payments Limited in 2022, which operates as a payment solution service provider to date.
In the fiscal year of 2023, Standard Holdings reported a significant net profit of Sh12.2 billion ($85.6 million), marking a 34% rise.
At the same time, Stanbic Bank Kenya saw its net earnings increase by 30% to KSh11.5 billion ($80.7 million). Additionally, Stanbic South Sudan observed a sizable 50% surge in its net earnings to KSh460 million ($3.2 million).
