The financial sector is undergoing a season of massive disruption occasioned by aggressive innovation. Offering financial services is no longer a preserve of the banking sector. The greatest disruption came with the introduction of mobile banking which saw the entry of mobile phone operators such as Safaricom and Airtel get into the foray.
In a bid to keep up the pace, Airtel has split its financial arm Airtel Money to operate as an independent subsidiary under Airtel Money Kenya Limited. The new entity took over the operations of the money business effective Thursday this week.
“We wish to inform the general public that to better serve our customers, we have separated and transferred the Airtel Money Business from Airtel Networks Kenya Limited to Airtel Money Kenya Limited,” a statement from the company said.
The company further stated that the spin-off will still share customer data with its parent company, Airtel Networks Kenya Limited.
“The continued use of the Airtel Money Service shall be deemed as proof of the customer’s acceptance of the transfer of their Airtel Money Account and related Customer Data and or sharing of the Customer Data between Airtel Money Kenya Limited and Airtel Networks Kenya Limited.” The company expounded.
Airtel Kenya recently sold a 25.77% stake to investors who pumped in much-needed cash in an attempt to turn around its dwindling performance. The deal saw the company raise $550 million (Sh65.2 billion).
The new move means that the mobile money business will be regulated by the Central Bank of Kenya. It’s also expected that the standalone entity will be responsible for more innovative products in a bid to remain profitable.