According to the Standard today Equity is looking to buy a majority stake in Housing Finance during the upcoming new share issue. Equity Bank who are the underwriting bank will buy the shares offered to the majority share holders in conjunction with Britak one of Kenya’s leading insurers to create a financial supermarket as many would want to call it. According to my banker friends they are of the opinion that Equity Bank is spreading themselves too thin growing at a furious pace. Definately to some it would remind them of Uchumi.
On paper though it does look like a brilliant idea, Equity Bank who have proved the banking industry wrong by banking on the low income masses could use Housing finances expertise to tailor morgage products for thier customers. On the other hand housing finance could benefit from the extensive branch network and access to Equity’s customers. Britak will then be able to tailor insurance products for the morgage buyers and both sets of customers. Its a great idea in my perspective though it would tread on uncharted waters.
My vote goes with Equity, they have proved their critics wrong and i think on this they will once again prove them wrong.