Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

FinTech

MTN MoMo bank begins operations in Nigeria

Article Image
After final approval for a Payment Service Bank (PSB) license was granted by the Central Bank of Nigeria (CBN), the telco's fintech subsidiary Mobile Money (MoMo) PSB has formally begun operations in Nigeria. The opening of the bank followed a successful pilot initiated on May 16, 2022.

This is the final milestone in a long battle by the region's biggest telcos to launch mobile money services in Nigeria, despite the opposition of government and the central bank.

In a statement, the mobile operator said the opening is a key milestone in delivering the company's Ambition 2025 strategic priorities, and the bank is poised to enable millions of unbanked and underserved Nigerians to access a wide range of financial service products.

In addition to providing digitized payment services as an easy alternative to cash, MoMo wallets in the future will also enable account holders to receive inbound remittances from any country in the world. This is an important feature given Nigeria's ranking as the destination for the highest remittance inflow in Sub-Saharan Africa.

"We are grateful to the Central Bank of Nigeria (CBN) for their support and guidance through the process. This is an important milestone for MTN Nigeria in our mission to support the delivery of financial services to everyone in Nigeria. Not just those in urban centers and markets, but also people in the rural and remote areas of the country who remain excluded from the financial system," MTN Nigeria CEO Karl Toriola said.

With the payment services bank license, MTN Nigeria will offer a wider range of mobile financial services beyond the traditional person-to-person mobile money transfers, such as lending and bill payments.

MTN Nigeria's announcement, follows Airtel Africa's launch of banking services in the West African country, as the operator moves forward with its own major mobile financial services plan.

Back in November 2021, both telcos received approval in principle from the CBN for licenses.

The PSB license will help the mobile operators offer a wider range of mobile financial services beyond the classic person-to-person MoMo transactions that have become popular all over Africa.

About 38 million adults in Nigeria remain financially excluded, according to local data analytics company Dataphyte. Nigeria's unbanked provide a massive growth opportunity for a mobile giant like MTN, which can now promote additional banking services to its existing 68.5 million subscribers in the country.

Related posts:

*Top image is MTN's new branding. (Source: MTN Group)

— Matshepo Sehloho, Associate Editor, Connecting Africa

Innovation hub

Story

Microsoft invests to help African startup growth

US-based software company Microsoft is investing and partnering to accelerate the growth of 10,000 African startups over the next five years.

Story

SA minister says AI institute should execute ideas

South Africa's Communications and Digital Technologies minister, Khumbudzo Ntshavheni, has officially launched the country's Artificial Intelligence Institute.

More Innovation hub

Partner perspectives

All Partner Perspectives

Africa Tech Perspectives

Story

Women in Tech: Spotlight on inclusivity with Digital Council Africa's Juanita Clark

Digital Council Africa founder and CEO, Juanita Clark, talks to Connecting Africa as part of our Women's Month series about her career and what needs to be done to make the tech industry intentionally inclusive.

Story

Women in Tech: Spotlight on legal tech with Life.file's Sinal Govender

Life.file co-founder, Sinal Govender, talks to Connecting Africa as part of our Women's Month series about her career and how we can encourage more young girls to enter the legal tech field.

Story

Digital inclusion as a catalyst for economic empowerment: Mastercard's Imelda Ngunzu

Mastercard's Imelda Ngunzu talks to Connecting Africa about how digital payment solutions and mobile money are transforming the lives of small business owners, women and marginalized groups in East Africa.

More AfricaCom perspectives

Latest video

More videos

Guest Perspectives

Story

Omdia View: July 2022

By Omdia Analysts

Kenya and Zambia move towards 5G with new spectrum allocations while Tunisie Telecom plans to shut down its 3G network - that and more in this month's Omdia View.

Story

Omdia View: June 2022

By Omdia Analysts

5G was the major news trend across Africa in June, as Orange became the first operator to launch 5G in Réunion and operators in Senegal accelerated their 5G plans despite spectrum delays.

More Guest Perspectives

Sponsored video

More videos

Flash poll

All polls

Like us on Facebook

Newsletter Sign Up


Sign Up