[quote=VituVingiSana]BBK as it sheds the "Barclays" moniker...

https://www.businessdail...5536-adj5e8z/index.html

BBK/ABSA getting into the (very) profitable micro-loans business.[/quote

No need for new topic.
Name change was already covered under the title barclays bank FY2017

I pity this bank looking for relevance after they abused their privileged position in the last 20 years.

This strategy will fall flat because of these three reasons:
1. Micro lending is already crowded by the big local banks, Saccos, Chamas, MFIs. No space for another confused big bank.
2. BBK is known for being a conservative, corporate type bank. Focus on micro lending will chase away the remaining conservative clientele.
3. Weak strategy. What a company lacks in management skills and strategy manifests in band aid ideas. They look good on paper but are just meant to buy time and next months salary for management. e.g Mumias going into ethanol, water and milk... Eveready with diapers and shaving razors... Uchumi with online stores... Express with real estate.

In short avoid this stock like the plague.

If they are serious about micro lending, it is better to buy one of the MFIs in the market or a nimble bank like Family Bank.

Barclays International has long exited the continent. So BBk is now owned by ABSA, London no longer has any input

Family is a Wananchi Bank. Now that it is distressed, they can get it on the Cheap esp with a share swap.

Reality is that Family will one day overtake BBK (if they get out of the current mess).

Buying a bank that's very different (culturally) is fraught with multiple risks.
Stanbic/CFC comes to mind. CFC customers left in droves.
I&M/Giro. Giro customers left. Goodwill gets impaired.
Equity/UML (Huge write-offs, provisions)

Unless BBK can thoroughly assess the assets/liabilities of Family Bank, then there is a huge risk in taking these on especially for SMEs or loans not backed by quality collateral. I would say a merger of SCBK and BBK might yield better synergies but that doesn't help go "down-market".

Or as suggested, BBK buys a Fintech/MFI (Chase owned Rafiki) and uses it to expand profitably "down-market" via the subsidiary model.