Africa’s largest telecom operator, MTN Group, is considering obtaining banking licences in some of its African markets, a move that could significantly expand its role in financial services and put parts of its business into more direct competition with traditional banks.
The Johannesburg-headquartered company already offers payments, transfers, savings and credit-related products through its Mobile Money, or MoMo, ecosystem.
But its lending model has largely depended on partnerships with banks and other financial institutions that provide the capital behind loans offered to customers.
MTN is now examining whether that model should change in selected markets.
Group CEO Ralph Mupita said the company is considering licences that would allow it to take deposits and, eventually, use its own balance sheet to finance loans, Reuters reported.
