Digital bank Eyowo says it is laying off 11% of its workforce as it changes its business model to financial intelligence following the revocation of its licence by the Central Bank of Nigeria.
The company denied shutting down, saying it is instead pivoting to “financial connectedness and intelligence”.
“We want to prioritize providing intelligence for better decision making to our users in their money and life choices,” it said in a statement Monday.
The company has closed one of its key units, Kwiksell.
“This new operating model will enable us to build an innovative product that will make money and life choices better, provide answers to people and drive a scalable business model,” it said.
– Not dismantling
A co-CEO of the firm, Omoseindemi Olobayo, later told TechCabal that an internal email reported by Technext indicating it was “dismantling” and shutting down on Tuesday was misinterpreted.
“The company as an entity is not dissolving but evolving into a different kind of business and mindset,” he was quoted as saying.
“We started out as an enterprise-focused company, but we have been evolving into a retail business that offers entrepreneurs and individuals a roadmap for their money. Today, we stepped into a new phase, which requires changing our enterprise DNA to a retail-focused DNA.”
The official said 13 staff members of 110 are leaving.
– Learn more
Until now, Eyowo offered a peer-to-peer payment system that allowed people to send and receive money using their phone numbers.
In 2019, the company said it had over 3.2 million unique accounts created and had processed over $50 million worth of payments.
In May, Eyowo, along with 46 other microfinance banks, lost its licence. The CBN said the decision was based on the banks being inactive, insolvent, non-compliant with reporting requirements, or ceasing banking operations for over six months.
Eyowo said its customers would not be able to send or receive money from their accounts for some time as a result of the CBN measure, but assured their money was safe.
In early June, the company said it would soon resume financial services using a Payment Solution Service Providers (PSSP) licence in partnership with Providus Bank.
The layoff follows a wave of sacks by tech companies in Nigeria and globally as startups struggle to deal with difficult economic conditions.
Discover more from Pluboard
Subscribe to get the latest posts sent to your email.