MTN MoMo eyes expanded African reach

Mobile operator MTN aims to develop Africa's largest digital fintech platform, with customers primarily using an app, according to MTN Group Fintech CEO Serigne Dioum. Dioum made these remarks at the second annual MTN Group Fintech Summit in Johannesburg, where representatives from Africa's regulators, policymakers, financial institutions, technology partners, merchants, developers, and innovators gathered.

The summit aimed to highlight the significance of collaboration among fintech, regulators, and policymakers. Dioum emphasized MTN's commitment to driving Africa's digital future through partnerships and delivering impactful services. Key factors shaping the economics of digital financial services include digital infrastructure, interoperability, QR payments, cloud services, data, artificial intelligence, open finance, smartphones, stablecoins, and central bank digital currencies.

MTN Group Fintech, the financial technology division of MTN, operates MoMo, its mobile money service, with users across 14 African markets, including South Africa. MoMo processed 30 million transactions and handled $330 billion in transactions during the first half of the year. Dioum explained that MTN's strategy revolves around a connected Africa story and a partner-focused regulatory environment.

Achieving this objective requires a significant technology shift, targeted partnerships, acquisitions when necessary, leveraging the bank tech lending platform, disciplined risk management, growing each business vertical, and executing in the focus stage. The goal is to unify the fintech organization with a balanced financing strategy and digitally enable every customer.

Dioum also mentioned that MTN's model is still evolving, progressing from access to intelligence. The company started with simple processes, moving money between individuals and businesses, creating a merchant ecosystem, and becoming a platform. Now, MTN aims to reach the next level, becoming an intelligent state where it can reach customers using its platforms and services while maintaining trust.

Dioum stressed that regulation will be crucial in enabling this transition. He stressed the importance of early collaboration with regulators to build the future financial inclusion platform in Africa. Dioum emphasized that mobile money has become a significant selling point, with customers transacting, paying merchants, obtaining loans, saving, and insuring their assets.

The company has reached a scale and a space where it needs to evolve further, seeking more flexibility and deeper involvement in transforming access. MTN aims to build trust with customers and help all Africans achieve financial independence.