Equity Group is considering separating its Finserve Africa business from the main business. This follows the resignation of two key managers in the company.
According to an insider’s opinion, Finserve’s performance is part of the reason for the anticipated spin-off. Additionally, Bloomberg notes that it is unlikely that the subsidiary will achieve its $22 million revenue target in its first year.
Earlier this month, Finserve’s Managing Director Jack Ngare left for Microsoft. At the same time, Eric Karobia, the Executive Director quit Finserve to become Airtel Money’s director in Uganda.
The separation of Finserve Africa from Equity group spells uncertainty, as Finserve helped build the Bank’s mobile banking business through Equitel.
Finserve Africa is a technology subsidiary that provides financial products such a Jenga API, Jenga Payment Gateway, Equitel, and mKey. Also, the company provides innovations through its organizations through data insights and a customer-driven culture.
