According to a report by the Kenyan Wall Street, Branch International , a fintech enterprise has happily welcomed the approval of its plan to acquire the Century Microfinance Bank by the Central Bank of Kenya.
Branch International Limited, a provider of digital lending financial solutions, through its local subsidiary Branch Kenya, has obtained the necessary Ministerial exemption and regulatory approvals authorizing it to conclude the acquisition of a bulk stake in Century Microfinance Bank Limited effective January 1, 2022.
With this acquisition, Branch Kenya will soon be giving rise to a landmark evolution as the first digital lender to transition into the microfinance banking platform. Allowing for, deposit-taking financial services and enhanced lending for individuals and SME clients with the controlling stake acquisition approval.
During a press release, the Central Bank of Kenya welcomed the transaction, defining it as a crucial ingredient of Century MFB’s transformation plan. The transaction, CBK said, will enhance Century MFB and reinforce the stability of the microfinance banking sector.
In addition to the CBK’s approval Branch also obtained approval from the Competition Authority of Kenya (CAK) during May 2021.
Regulated and licenced by the Central Bank of Kenya as a Deposit Taking Microfinance, Century Microfinance Bank was founded in 2012 as the seventh Micro Finance Bank (MFB) in Kenya.
The company has provided a full range of financial services ranging from savings accounts to credit facilities to its over 26,000 clients in Kenya.
According to Branch East Africa Managing Director Rose Muturi, the National Treasury’s exemption and Central Bank of Kenya’s approval of the acquisition bid will expedite Branch International’s efforts, to expand its local operations in their strategy towards a Pan-African digital bank.
The acquisition, she said, allows Branch Kenya the opportunity to ramp up the power of financial access by delivering world-class financial services to the mobile generation.
She added that the corporate acquisition would also provide a platform to bridge the financial services access gap using digital solutions.
“Branch International has received the approval news with excitement as this development now sets us on a growth path to deliver differentiated personal finance solutions for our growing customer base in Kenya,” Muturi said.
She added that “This approval is a major national milestone towards the deepening of financial access and continues to enhance Kenya’s position as an investment destination. It will also allow the conclusion of this transaction which has been made possible by the support and co-operation of Century Microfinance Bank, one of the leading players in the Microfinance banking space.”
Century Microfinance Bank Chairman Peterson Mwangi said the acquisition will boost the national financial inclusion efforts as the firm continues to adapt and deliver digital-driven solutions.
“Century Micro Finance Bank was first set up as a deposit-taking microfinance institution focusing on agricultural finance and offering agriculture-based credit and savings products. We have, however, expanded our portfolio to cover other financial services to the micro, small and medium enterprises (MSMEs) that serve the farmers as suppliers and buyers, And the acquisition by Branch International will provide much-needed impetus for growth,” said Mwangi.
With headquarters in San Francisco, United States, Branch International operates in India, Kenya, Tanzania, and Nigeria.
BrancThe branchbeen working to bridge the traditional financial access obstacles such as a credit score and bank account. Through, tapping into the increase of mobile technology to reach the underserved populations in its operating markets.
Presently, Branch has managed to digitally disburse more than US$ 600million to a growing customer base of more than 4million customers.
Founded by Matt Flannery and Daniel Jung, the pioneers of microlending and leaders in finance and technology, Branch International has received equity investment support from several venture capital firms. Including Andreessen Horowitz, Formation 8, CreditEase Fintech Investment Fund (CEFIF), IFC, Khosla Ventures, Trinity Ventures, Victory Park, Triple Point Capital, Foundation Capital and,Visa.
BrancThe branchacked by visionary global investors, ranging from Andreessen Horowitz (who backed Facebook, Twitter and,other global platforms early on) to Visa (who understands how to build a global trusted financial service) to the IFC (the private sector investment arm of the World Bank).
Branch is founded and led by the founders of Kiva.org, a global NGO that’s raised over $1 billion US$ of 0% interest capital for financial inclusion in 80 countries.
With over 25 million downloads and a 4.5 star Google Play store rating, the Branch app is available on Android devices and can be downloaded on the Google Play Store.
Branch’sFAQ Answered
What is Branch?
Branch is a digital lending platform that makes it easy for people in Kenya to access a loan, anytime, anywhere. You simply complete their application in seconds and receive your loan straight into your mobile money account. Branch is like a bank in your pocket. The branch app is there for you at all times. Visit their website to learn more.
Where is Branch located?
Branch has offices in Nairobi, Lagos, Nigeria; Mumbai, India; and San Francisco, United States.
In which countries does branch operate?
At the moment, Branch operates in India, Kenya, Tanzania, and Nigeria.
Is there a Swahili version of Branch?
Yes! Kindly ensure you are using the latest version of the app. Then from your app go to “My Account”, then tap “App Settings”, then select “Language”, choose “Kiswahili” and tap “Submit” to save.
Which networks does Branch support?
In Kenya, they support Safaricom. And hope to expand their coverage in the near future to cover other networks.
