Nigeria’s Access Bank Snaps Up London Fintech for Fraction of Previous Valuation
The London-based small business lender—formerly known as Cashplus—has been acquired by Access Bank UK, Nigeria’s biggest bank’s British arm. The price? A modest £3.45 per share. The problem? Back in 2020, those same shares were valued at just over £9.
We’re talking about an £80m valuation slashed to roughly £31m. Ouch.
So what went wrong for this fintech darling, and what does this bargain-basement acquisition tell us about the state of UK digital banking?
The Numbers Don’t Lie: Zempler’s Mixed Financial Picture
Zempler wasn’t exactly circling the drain.
The digital bank’s profit actually grew 58% to £5.2m in the year ending March 2025. Not bad, right? But dig deeper and the cracks start showing.
Net loans dropped 10% to £25.5m from £28.2m. More concerning? Debt charge-offs—basically writing off loans you’ll never get back—jumped from £4.3m to £5.9m. That’s a 37% increase in money vanishing into thin air.
The culprit? Zempler pointed to “higher delinquencies resulting from the cost of living crisis” and early defaults from previous acquisitions during what they called a “prolonged period of muted lending.”
Translation: people stopped paying back their loans when bills got nasty, and old lending decisions came back to haunt them.
Customer Growth Hit a Wall
Zempler’s core market—microbusiness customers—barely budged. They added just 965 customers to reach 170,280, a measly 0.57% growth rate.
For a fintech that’s supposed to be disrupting traditional banking? That’s basically standing still while your competitors sprint past you.
Access Bank: The Bargain Hunter with Deep Pockets
Meanwhile, Access Bank UK is having quite the moment. Their pre-tax profit grew 14.5% to £173.4m in 2024, while assets ballooned nearly 40% to $6.13bn.
The Lagos-based parent bank’s UK subsidiary specialises in trade lending, asset management, and private banking—a natural fit for absorbing Zempler’s small business lending operations.
And they’re clearly not hurting for cash. Roosevelt Ogbonna, Access Bank UK’s boss since May 2022, reportedly snapped up a £15m mansion in one of London’s poshest postcodes last year. Nice work if you can get it.
What This Deal Tells Us About Fintech Valuations
This acquisition is another data point in fintech’s reality check. The sky-high valuations of 2020—fuelled by cheap money and pandemic-era digital adoption—have come crashing down to earth.
Zempler’s 60% haircut isn’t an isolated incident. It’s part of a broader correction where profitable but slow-growing fintechs are being scooped up by traditional banks with actual balance sheets and patient capital.
For Access Bank, this is a strategic play. They’re buying established UK small business relationships and regulatory infrastructure at a discount. For Zempler’s investors? It’s a painful reminder that valuation and value aren’t always the same thing.
The Deal’s Status
Both companies confirmed the transaction has received regulatory approval and expects to complete “in the coming weeks.”
What happens to Zempler’s brand and customers remains to be seen, but Access Bank is getting a ready-made small business lending platform without having to build one from scratch.
The Bottom Line
Zempler Bank’s sale shows that even profitable fintechs aren’t immune to market corrections. Rising loan defaults, stagnant customer growth, and a tough lending environment made the £80m valuation unsustainable.
Access Bank spotted an opportunity and pounced. In today’s fintech landscape, that’s just smart shopping.
Want to stay ahead of fintech M&A trends? Keep an eye on which digital banks are struggling with loan quality—they might be next.
FAQ
Q1: Why did Zempler Bank’s valuation drop so dramatically?
A: The fintech’s £80m valuation in 2020 reflected pandemic-era optimism and cheap capital. By 2025, rising loan defaults, minimal customer growth, and tighter lending conditions made that valuation unsustainable. Access Bank capitalised on this reality check.
Q2: What does Access Bank gain from this acquisition?
A: Access Bank acquires an established UK small business lending platform, existing customer relationships, and regulatory infrastructure without building from scratch. With 170,000+ microbusiness customers, it’s a ready-made entry point into the UK SME market.
Q3: Are Zempler Bank’s financial troubles typical for UK fintechs?
A: Many UK fintechs are facing similar pressures. The cost of living crisis increased loan defaults across the sector, while customer acquisition costs rose. Profitable but slow-growing fintechs are increasingly attractive acquisition targets for traditional banks.
Q4: What happens to Zempler Bank customers after the acquisition?
A: The companies haven’t detailed integration plans yet. Typically, customers continue with existing services while operations gradually merge. Access Bank’s resources could potentially improve service offerings and lending capacity.
Q5: Is this deal good news for fintech consolidation?
A: It signals continued consolidation in UK fintech, with well-capitalised traditional banks absorbing smaller digital players. For the industry, it shows the path forward isn’t always IPOs and unicorn valuations—sometimes it’s strategic exits to bigger fish.
DISCLAIMER
Effective Date: 15th July 2025
The information provided on this website is for informational and educational purposes only and reflects the personal opinions of the author(s). It is not intended as financial, investment, tax, or legal advice.
We are not certified financial advisers. None of the content on this website constitutes a recommendation to buy, sell, or hold any financial product, asset, or service. You should not rely on any information provided here to make financial decisions.
We strongly recommend that you:
- Conduct your own research and due diligence
- Consult with a qualified financial adviser or professional before making any investment or financial decisions
While we strive to ensure that all information is accurate and up to date, we make no guarantees about the completeness, reliability, or suitability of any content on this site.
By using this website, you acknowledge and agree that we are not responsible for any financial loss, damage, or decisions made based on the content presented.
