MTN Nigeria launches own Bank

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By Moses kaketo

Telecom firm, MTN Nigeria on Tuesday unveiled its own Bank – MoMo Payment Service Bank Limited.

The launch- follows over two years of waiting for the permit, gives the local unit of Johannesburg-headquartered MTN Group Limited, powers to operate virtually all the services offered by conventional commercial banks with the exception of granting credit and processing foreign exchange transactions.

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MTN Nigeria provides one-third of the MTN Group’s sales.

‘ ‘ I am pleased to announce that our fintech subsidiary MoMo Payment Service Bank started commercial operations today, following a successful pilot initiated on 16 May 2022 (in commemoration of the launch of our GSM operations on 16 May 2001 and our listing by introduction on the NGX on 16 May 2019).’’ Said Hassan Jaber COO at MTN Nigeria

The telecom giant boasts of over 70 million customers, a wide range of financial service products with an expansive agent network of over 166,000 agents and digitized partnership infrastructure.

Jaber says the financial inclusion potential of MoMo PSB is particularly exciting, especially as it relates to driving sustainable access to and use of financial services by the unbanked, underserved, and women in Nigeria.

There are 38 million unbanked adult population in Nigeria. according to Abuja-based media research house and data analytics firm, these held N26.2 trillion last year alone.
‘ ‘MoMo PSB will help bring more people into the financial net, improve their livelihoods and foster economic empowerment, which ultimately supports the socio-economic development of our nation.’’

Hassan Jaber says MTN Nigeria is committed to working with like-minded partners to bridge the digital and financial divide and further inclusion; we’re excited about the opportunities to partner with relevant institutions to co-create and deliver service to the last mile using our expansive distribution network.

Speaking on the latest development, Karl Toriola, CEO of MTN Nigeria said, “This is an important milestone for MTN Nigeria in our mission to support government’s drive to towards financial inclusion in Nigeria. Not just for 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”.
The CEO of MoMo PSB, Usoro Usoro, said “Providing easy to use, accessible and affordable financial services to all Nigerians is essential to executing the CBN’s financial inclusion strategy and digital inclusion agenda of the Minister of Communications and Digital Economy. We look forward to playing our part and are excited about the opportunities to partner with relevant institutions across various sectors to co-create and expand access nationwide”.

The ubiquity of coverage of the telcos mean banking will no longer be the preserve of commercial lenders, a development that could position the latter to take a big bite at the e-business earnings of conventional lenders at a time most banks are struggling to sustain profit growth.

read: LYCA MOBILE: the telecom company that ‘died’ the very day it launched in Uganda

To get onboard the fintech service, customers can dial *671# on any network to open a MoMo wallet with which they can send money to any phone number in the country and pay their bills as well.

also read: Fighting for a dead man: 90% of UTL assets were mortgaged to PTA bank

Also, the MoMo wallet will enable Nigerians in the diaspora to send money to any phone number in the country, in the nearest future. According to the company, this is an important feature given Nigeria’s ranking as the destination for the highest remittance inflow in Sub-Saharan Africa.

also read: Why Airtel Uganda sacked Tom Gutjahr after one year in office

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