Eyowo, the digital bank, has revealed plans to lay off approximately 11% of its workforce as it shifts focus from a business-to-business (B2B) model to a business-to-customer (B2C) approach.
Eyowo aims to directly offer its innovative financial products and services to consumers and selected entrepreneurs.
The announcement was made via Eyowo’s official Twitter account, where the company shared a comprehensive statement outlining its vision for the future.
According to the statement, Eyowo is poised to become a financial technology platform that fosters financial connectedness and intelligence for individuals with smartphones.
The objective is to empower users to make informed decisions about their everyday money management and lifestyle choices.
As part of this transition, Eyowo has decided to discontinue one of its products, Kwiksell, while simultaneously enhancing its other product, Eyowo X.
The company also plans to concentrate its efforts on providing users with financial intelligence that facilitates better decision-making. Although the changes will affect certain aspects of Eyowo’s operations, the core businesses and ongoing improvements of Eyowo X will remain intact, promising an enhanced user experience.
Eyowo’s workforce reduction primarily impacts employees whose roles are directly influenced by the company’s strategic shift. While such changes can be challenging, they are crucial to aligning the organization with its new business model.
It is important to note that Eyowo recently faced a significant setback when the Central Bank of Nigeria revoked its microfinance bank license, along with licenses of 46 other microfinance banks.
The revocation was attributed to factors such as inactivity, insolvency, failure to submit returns, closure, or cessation of banking operations for an extended period. However, Eyowo emphasized that this regulatory development does not pose an immediate threat to the safety of customers’ funds.
While customers may experience a temporary disruption in sending and receiving money due to the license revocation, Eyowo assured them that the directive from the Central Bank of Nigeria is unrelated to the company’s planned service improvements and ongoing onboarding freeze.