A digital bank, Eyowo, has announced that it will lay off 11% of its staff as the company undergoes internal restructuring.
This was revealed in a formal statement released on Monday and made public via its Twitter account.
The statement says, in part: “We are changing course to become a financial technology platform that offers financial connectedness and intelligence for everyone with a smartphone to make everyday financial and lifestyle decisions.”
The business also stated that it would halt operations for one of its products, Kwiksll, while making upgrades to Eyowo X.
“We would no longer offer Kwiksell’s inventory capabilities while maintaining the same payment services since we want to give our users the intelligence they need to make better financial and life decisions.”
Business-to-business company Eyowo announced that it would switch to a business-to-customer model and start selling its products directly to customers and a limited group of entrepreneurs.
As a result, Eyowo announced that 11% of its staff would be let go because their efforts will be directly impacted by the adjustments and new direction.
Recall that the licenses of Eyowo and 46 other microfinance banks were withdrawn by The Central Bank of Nigeria last month.
The apex bank claims that the companies’ licenses were canceled as a result of their prolonged inactivity, insolvency, failure to file returns, closed shop, or ceasing to do the specific sort of banking business for which they were licensed for more than six months.
The Banks and Other Financial Institutions Act, 2020 and the Revised Regulatory and Supervisory Guidelines for Microfinance Banks in Nigeria, according to the CBN, were violated.
The Central Bank of Nigeria canceled Eyowo’s license to operate as a microfinance institution, and as a result, its customers won’t be able to transfer or receive money from their accounts for a while.
The CBN directive, however, “has no immediate impact on the safety of their money, and is in no way connected to the planned service improvements and ongoing onboarding freeze we announced,” the bank informed clients.
As they contested the revocation of their Microfinance Bank licence, the CEO of Eyowo stated a few weeks ago that the company will soon begin its financial services via its Payment Solution Service Providers.
He claimed that Eyowo has the full support of the CBN to continue offering its payment services thanks to the PSSP license.
A PSSP license enables a business to offer financial services, such as running payment processing gateways and portals that retailers use to receive debit or credit card payments from clients.
