By Dipo Olowookere
The desire to enhance its growth trajectory in the financial services sector has pushed a leading developmental investment bank, DLM Capital Group, to acquire a microfinance bank in Nigeria.
DLM Capital prides itself as a foremost developmental investment bank in Africa and functions as a sole arranger to more than 80 per cent of structured finance transactions in Nigeria with 100 per cent of all securitisation transactions in the market currently.
But in order to maintain its leadership position in the space, it has acquired Links Microfinance Bank Limited, which has its corporate head office in Yaba, Lagos.
A statement made available to Business Post explained that the deal will give DLM Capital the mandate to operate small scale banking services in Nigeria.
This will also allow the successive launch of its star digital lending brand, Sofri, in the second quarter of this year, it added.
According to the lender, the acquisition, combined with its many fintech efforts already underway, will position them to deliver even more value for corporates and consumers.
“We are particularly excited about our acquisition of Links MFB and how it enhances the growth trajectory of our business.
“This highly strategic acquisition represents another significant milestone for us on our journey as a resilient and well-capitalized financial institution with advanced scale and capacity to deliver sustainable and best-in-class financial services within the Nigerian market.
“We are confident that this decade will be bullish for Nigeria’s tech space and are ready to work with the fintech community in strengthening the solutions necessary to meet consumer needs,” the Corporate Communications Manager at DLM Capital, Chinwendu Ohakpougwu, stated.
It is believed that the acquisition of Links Microfinance Bank by DLM Capital represents both an entry into new businesses and complementary enhancements to the institution’s existing subsidiaries.
First, this prospect opens new market opportunities for the bank on the African continent.
Second, the transaction will enable the institution to exit its ‘legacy bank’ visibility and work more closely with the fintech community to build a ‘challenger bank’ brand that proffers innovative technological solutions for the Nigerian market.
The blockchain brings new financing options to the business market. For example, Bitcoin Cash casino has adapted to only using cryptocurrency. This way, it makes it easier for their customers to deposit and withdraw in a BCH casino. Entrepreneurs have taken note of this and are looking to invest more in crypto than in fiat markets.
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