Eyowo: Transforming into a Financial Technology Platform Amidst Internal Changes, Laying off 11% of Workforce

Eyowo, the digital bank, recently put an end to swirling rumors suggesting an impending shutdown by releasing an official statement via its Twitter handle. The company is set to undergo internal changes as it embarks on a transformative journey. In this transition, Eyowo aims to become a financial technology platform that empowers individuals with smartphone-based financial connectedness and intelligence for their everyday money and living choices.

As part of its strategic shift, Eyowo will discontinue one of its products, Kwiksell, while simultaneously enhancing its flagship offering, Eyowo X. The decision to phase out the inventory capabilities of Kwiksell aligns with the company's commitment to prioritize providing users with intelligence to make informed decisions regarding their finances and overall life choices. Despite these changes, Eyowo X remains unaffected and will continue to be available in the market, with ongoing improvements being implemented to restore all services and augment its intelligence capabilities.

The company took to Twitter to disclose its current situation and plans for the future

Transition to B2C Model: Laying off Workforce and Serving Consumers Directly

Eyowo has made a significant decision to transition from a business-to-business (B2B) company to a business-to-customer (B2C) entity. This strategic shift entails offering products and services directly to consumers and select entrepreneurs. Consequently, the company will be reducing its workforce by 11% to align with the new direction and changes in the organization.

Context: Central Bank of Nigeria Revokes Licenses

Last month, Eyowo faced the revocation of its license by the Central Bank of Nigeria, alongside 46 other microfinance banks. The apex bank cited various reasons for this action, including inactivity, insolvency, failure to render returns, closure, and the cessation of banking operations for more than six months. These actions were in violation of the Banks and Other Financial Institutions Act (BOFIA), 2020, and the Revised Regulatory and Supervisory Guidelines for Microfinance Banks in Nigeria.

As a consequence of the revoked license, Eyowo informed customers that there would be a temporary halt in their ability to send or receive money from their accounts. However, the company reassured its customers that their funds were secure and that the directive from the Central Bank of Nigeria had no immediate impact on their money's safety. Eyowo also emphasized that the license revocation was not connected to the planned service improvements and ongoing onboarding freeze they had previously announced.

Utilizing Payment Solution Service Providers: Resuming Financial Services

Eyowo's CEO recently announced plans to resume financial services by leveraging its Payment Solution Service Providers (PSSP) license. This license enables Eyowo to operate as a payment processing gateway, facilitating debit and credit card purchases for merchants. With the full backing of the Central Bank of Nigeria, Eyowo is confident in its ability to continue providing payment services while battling the challenges caused by the revocation of their Microfinance Bank license.

As Eyowo embarks on its transformative journey, the company aims to empower individuals with enhanced financial connectedness and guide their decision-making process. Despite the necessary changes and temporary service interruptions, Eyowo remains committed to ensuring the safety of its customers' funds while actively working towards improving and expanding its range of services.