Plans for a dedicated fintech subsidiary by Kenyan financial powerhouse Stanbic Holdings have come to a surprising halt, just months after receiving a green light from the Capital Markets Authority (CMA).
The decision to hit the brakes was announced by Joshua Oigara, CEO of Stanbic Bank Kenya and South Sudan. "
"We reviewed that decision at the board level and what we have done is put it on hold at the moment," Oigara revealed.
"If we need to come back to it, we will, but for now, that is the position."
This news comes as a surprise considering Stanbic Holdings' past enthusiasm for fintech.
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Just last December, the company expressed keen interest in exploring partnerships and acquisitions within the fintech or mobile network operator space, with the goal of achieving "exponential business growth."
Additionally, the CMA approved Stanbic's proposal for incorporating a fintech subsidiary in the final quarter of 2023.
This subsidiary would have been Stanbic Holdings' fifth, joining its existing portfolio.
Stanbic Holdings' interest in fintech extends beyond the proposed subsidiary.
In 2021, the company actively pursued partnerships with Chinese fintech firms to facilitate Sino-African trade.
These collaborations envisioned empowering Kenyan businesses to connect with reliable Chinese suppliers and streamline transaction settlements.
While the recent pause on the fintech subsidiary raises questions about Stanbic Holdings' current priorities, it could suggest a potential shift in Stanbic's short-term priorities.
While Standard Bank Group, Stanbic Holdings' parent company, has consistently demonstrated a willingness to collaborate with fintech companies, Stanbic Holdings seems to be taking a more cautious approach for the time being.
The company has remained tight-lipped about the specific reasons behind the decision, leaving observers to wonder if this is a temporary setback or a more permanent shift in direction.
