With an already impressive portfolio and footprint across nine countries in East and Southern Africa, Letshego Holdings Limited has added yet another market to its portfolio by acquiring a 100 per cent shareholding in FBN Microfinance Bank (FBN MFB) from its parent, FBN Holdings plc in Nigeria.
According to a press release from Letshego Holdings Limited, the acquisition of FBN MFB marks Letshego's entry into West Africa, having successfully built a footprint across East and Southern Africa with 265 000 customers across nine countries.
"This development brings Letshego's footprint to 10 countries with a customer base of over 385 000. Nigeria, in particular, has been a key target market in Letshego's diversification plans," the release says.
It further states that FBN Holdings plc is the oldest bank in Nigeria having been established in 1894, and is listed on the Nigeria Stock Exchange, and that FBN MFB was established in 2009 and is one of only six microfinance banks in Nigeria to have been awarded a national microfinance banking licence.
Currently, it says FBN MFB has 28 branches and over 300 team members. Its core business is lending, savings and transactional financial services to micro and small enterprises (MSEs). Meanwhile, Letshego Holdings' Group managing director, Mr Chris Low said as the leading indigenous BSE-company by market capitalisation and profitability, it is an exciting time for them at Letshego.
"This opportunity to enter the Nigerian market coincides with the expansion of our range of financially inclusive products and services. We believe we can harness Nigeria's growth prospects in our target customer segments by bringing our skills to this market and we look forward to being able to further improve lives across the continent through our Nigerian entry," said Mr Low.
He indicated that with over 80 000 depositors and over 10 000 MSE borrowing customers, the bank's operations are directly aligned to Letshego's financial inclusion agenda.
He said Letshego brings its expertise in payroll deduction lending in the public and private sector as well as in micro and small enterprises with a focus on agriculture, education and health sectors. He stated that FBN MFB will rebrand to Letshego MFB.
He further said FBN MFB's banking channels will be used to roll out Letshego's suite of products and services and these channels include Internet banking, mobile banking and cards, and will be aimed at improving inter-operability, simplicity and customer experience.
