Exclusive: Eyowo to shut down operations Tuesday, June 27, lays off most employees

Popular digital banking platform, Eyowo is shutting down its operations tomorrow, June 27th. This was contained in a mail sent to its staff and stakeholders as seen by Technext. It was also confirmed by a source within the company.

In the mail, the company said it has found itself unable to stay true to its purpose and values, primarily hampered by the numerous challenges it has faced in the first half of the year and the past years which has impacted its abilities to fulfil its obligations.

“We are wrapping up Softcom and Eyowo as you know it. This means all our processes, procedure, responsibilities and departments have all been dissolved. We have held our human-centred values for a very long time and no longer recognise its within the company, our realities and abilities to act.”

Eyowo

The company further stated that “We have never thought for once that dismantling the company would become an option as our goal was to restore the joy and culture of the company we all loved.”

The company attributed its closure to recent “market complications, especially the CBN one” which has left investments that could have catered for the company and its staff and stakeholders in doubt.

The company also apologised to them for the great difficulty it has caused them, also for their mental and emotional well-being that might have been affected in the buildup to closing shop.

The statement reads in part:

“It is now apparent that own desires can no longer be a constraint to your career and wellbeing, so we must take immediate action of putting work to an end for most people”

Eyowo

This is an end to things as you know it.

The company says that Eyowo X and Eyowo offices would continue to exist as products but it will be replacing Kwiksell with a purchased product that can deliver certain functionalities. The company said it will be retaining a small group of staff focused on product innovation and supporting customers in the market.

It also says it would be paying all outstanding salaries and obligations it owes its employees within 3-14 days.

Several efforts to obtain an official response from the company have been unsuccessful. Hence. the story is developing and will be updated as soon as we get a response.

Read also: Financial Solutions Platform, Eyowo Hopes to Ease Business Operations in Nigeria with its Retail/Business Workshop Series

What you should know about Eyowo’s recent trials

Recently, the Central bank Of Nigeria (CBN) revoked the license of the digital bank. The bank’s licence was revoked along with the licences of 46 other microfinance institutions.

The 47 microfinance banks’ licences, according to the apex bank, were withdrawn because they were inactive, insolvent, failed to submit returns, shut down, or stopped conducting banking business as they were licensed for longer than six months.

In light of this, the digital bank said its customers would not be able to send or receive money from their accounts for some time as a result of the revocations of its Microfinance operating licence.

This phase has been characterised by its customers expressing concern over their inability to make transactions. However, Eyowo said there was no cause for alarm, pledging “We remain committed to ensuring the security of your money and apologise for any inconveniences that you will experience in this period.”

Later, at the beginning of the month, Yomi Adedeji, the co-CEO said that the company would soon resume its financial services using its Payment Solution Service Providers (PSSP) licence. Adedeji disclosed this in an update provided to its customers where he said that the bank is now 98.8 per cent ready to resume its activities, stressing that as one of the 75 companies licensed by CBN as PSSPs, Eyowa will continue providing its payment services. 

“Please bear in mind that with our PSSP licence, we are fully backed by the CBN to continue providing the services you enjoy on Eyowo.” Eyowa Co-CEO said. 

According to him, the bank has partnered with Providus Bank to enable interbank transactions, to which it has started connecting its tier 2 and 3 customers to new accounts. It has revealed that it would send emails on how they can resume transactions. 

“We appreciate our partner, Providus Bank, for taking proactive steps to provide us with all the support we needed to get all Eyowo services back up for you and your business. They have been our proud partners of potential.” 

But going by the new development, it seems that promise would not be fulfilled as the company has closed shop.