Telecoms giant MTN seeks banking licenses across Africa
The strategy ramps up competition among Africa’s financial institutions for a growing customer base.
Africa's leading telecommunications firm, MTN, intends to obtain banking licenses throughout the continent, according to its CEO, Ralph Mupita. The company's expansion from voice and data services to financial services, including mobile money payments, has been driven by its operations in over a dozen African countries. Mupita believes that lending will be the key to the company's future growth and expressed interest in obtaining a "some sort of banking license that enables us to take deposits."
The company's long-term goal is to expand its lending activities "off our own balance sheet," Mupita added.
Regulators in Africa have been increasingly open to allowing fintechs and telecom companies to compete with conventional banks in offering direct lending services to consumers, thereby facilitating the inclusion of more individuals in the formal economy. Nigeria, which accounts for the majority of MTN's subscriber base and revenue, is a particularly competitive market with more than 400 licensed digital money lenders.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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