MTN Group eyes banking licences as lending becomes its next big bet

Africa's leading telecommunications company, MTN Group, is investigating the possibility of obtaining banking licenses in select markets as it explores expanding its lending operations using its own financial resources. CEO Ralph Mupita announced this strategy during an interview with journalists, as the company intensifies efforts to diversify its revenue streams beyond traditional telecom services.

Lending has become a rapidly growing sector within MTN's mobile money operations, alongside payment and e-commerce services, positioning financial services as a crucial component in the group's growth strategy. Currently, MTN offers loans through partnerships with banks, but Mupita indicated the company is evaluating the potential to obtain banking licenses in regions with substantial customer bases and significant mobile money wallet funds.

Under this proposed model, MTN would progressively utilize its balance sheet for lending, although it does not plan to relinquish its existing banking partnerships. The company intends to implement this approach selectively, with the transition to balance-sheet lending occurring gradually due to associated risks. Mupita emphasized lending as the primary growth opportunity within MTN's expanding fintech sector.

This move aligns with MTN's broader fintech expansion across Africa, which includes separating its fintech operations in Nigeria, Ghana, and Uganda in 2025. In Nigeria, MTN has agreed to acquire a 60% stake in its fintech subsidiaries, MoMo Payment Service Bank and Y’ello Digital Financial Services (YDF), for N152.06 billion. The fintech segment has emerged as a significant revenue generator for MTN, contributing approximately N43 billion in quarterly earnings, as reported by Nairametrics in November 2025.

MTN's renewed emphasis on fintech coincides with the company's robust financial performance amidst its ongoing expansion in core telecommunications operations. For the 2025 financial year, MTN Group reported a 25% increase in service revenue to R218 billion, largely driven by its Nigerian and Ghanaian markets. Additionally, MTN is advancing plans to expand its infrastructure footprint in Nigeria, having received conditional approval from the Federal Competition and Consumer Protection Commission (FCCPC) for a proposed $6.2 billion acquisition of IHS Holding Limited, bringing the transaction closer to completion.