Fintech company Mybucks buying 6 African MFIs?

mybucks.jpgProbably also since MyBucks is a Luxembourg based company, I felt even more surprised about the article “Mybucks and Opportunity International Partner to Drive Financial Inclusion for 460 Million Unbanked Citizens of Africa” I found in the internet.

Opportunity International, in their press release mentions that the microfinance network we all know, has entered into a share purchase agreement to sell six of their banks serving sub-Saharan Africa to the MyBucks Group, a Luxembourg-based financial technology (fintech) company which holds the three brands GetBucks, GetSure and GetBanked.

Opportunity International will be a minority shareholder in MyBucks and retain at least one board seat at the parent level and one on the board of each bank. In addition, funding will be made available to the African banks to ensure continued social impact and responsibility. The transaction is subject to customary closing conditions and regulatory approval from the Central Bank in each country.

Normally,  banks have been acquiring fintech companies. however, in this deal, a fintech company has acquired banks to bridge the gap between the virtual and traditional worlds of banking to enable faster, more efficient and less expensive access to financial services for clients.

My bucks principally offers a platform for personal financial managment to help people manage their budget, get access to short-and longterm credit, access insurnace products, etc. In the film they post on their website, they also talk of credit products they themselves offer and that clients can achieve a growing “trust-level” with MyBucks. Do they talk about a credit history and a credit scoring model based on people`s financial transactions? Wouldn`t they be in competition iwth their Opportunity International banks, then?

I personally have not made up my mind, if I consider this a good (or not so good) operation. But maybe you can help me form my mind?!?

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