Afrigather Olu Akanmu, OPay’s former president and co-CEO, exit underscores the potential tensions between monetary targets and model notion in fintech firms.
On July 31, 2023, Olu Akanmu, former co-CEO of Opay, stepped down after virtually two years on the Chinese language-owned fintech; his exit shocked many, given Opay’s spectacular development underneath his management.
A conflict of imaginative and prescient between the previous banker and the remainder of the corporate’s management led to Akanmu’s departure, one particular person with data of Opay’s enterprise advised TechCabal.
“The Chinese language cared about numbers way more than the model’s notion,” that particular person advised TechCabal.
A number of of Akanmu’s proposed initiatives, resembling a cost gateway and a “payme” account for one-time funds, have been reportedly shelved. Moreover, his dedication to social accountability tasks like monetary inclusion for ladies and partnerships with internally displaced individuals (IDPs) appeared at odds with the Chinese language buyers’ laser deal with numbers. Akanmu’s exit underscores the potential tensions between monetary targets and model notion in fintech firms.
Opay operates a co-CEO construction, giving Olu Akanmu and a second CEO inside sources recognized as Steven twin management. In response to these folks, Steven was usually answerable for the coverage on the fintech. Akanmu’s background in retail banking at FCMB, a Nigerian financial institution with a market capitalisation of ₦217 billion, positioned him to develop Opay’s service provider enterprise, together with POS, company banking, and wallets. Regardless of this focus, inside sources mentioned his co-CEO, Steven, had larger management over Opay’s course.
Opay didn’t reply any of TechCabal’s questions on the time of this report.
Throughout Akanmu’s time at Opay, the fintech grew exponentially, reaching over 30 million customers, 500,000 brokers, and 100,000 retailers, based on publicly launched figures.
The fintech beforehand provided a brilliant app mannequin, providing meals supply, ride-hailing, logistics, and cost providers, earlier than solely specializing in monetary providers in 2020. It additionally proved a formidable various to legacy banks throughout Nigeria’s botched currency redesign, which led to a money crunch. The fintech’s strong infrastructure and efficient distribution methods have been deeply attributed to this win.
New Management and regulatory hurdles
Following Akanmu’s departure, Daudu Gotring, a former director on the Central Financial institution of Nigeria (CBN), turned CEO. This appointment signaled Opay’s try to navigate elevated regulatory scrutiny surrounding its Know Your Buyer (KYC) measures.
Opay confronted rising regulatory scrutiny over its Know Your Buyer (KYC) processes final 12 months after allegations that it opened accounts for users without consent. The fintech, alongside different neobanks, had simplified person registration to draw unbanked prospects, generally omitting strict id verification for primary accounts account sorts with restricted options. Dangerous actors have exploited this lax KYC method to perpetrate fraud.
TechCabal reported in October that Constancy Financial institution, a Nigerian business financial institution, blocked transfers to OPay and different neobanks over issues that their lax KYC processes are resulting in elevated fraud instances.
