Close Menu
Innovation Village | Technology, Product Reviews, Business
    Facebook X (Twitter) Instagram
    Wednesday, September 3
    • About us
      • Authors
    • Contact us
    • Privacy policy
    • Terms of use
    • Advertise
    • Newsletter
    • Post a Job
    • Partners
    Facebook X (Twitter) LinkedIn YouTube WhatsApp
    Innovation Village | Technology, Product Reviews, Business
    • Home
    • Innovation
      • Products
      • Technology
      • Internet of Things
    • Business
      • Agritech
      • Fintech
      • Healthtech
      • Investments
        • Cryptocurrency
      • People
      • Startups
      • Women In Tech
    • Media
      • Entertainment
      • Gaming
    • Reviews
      • Gadgets
      • Apps
      • How To
    • Giveaways
    • Jobs
    Innovation Village | Technology, Product Reviews, Business
    You are at:Home»Africa»MTN sets sights on digital banking in South Africa as SARB welcomes non-bank entities
    MTN

    MTN sets sights on digital banking in South Africa as SARB welcomes non-bank entities

    0
    By Tapiwa Matthew Mutisi on December 19, 2024 Africa, Banking, Business, Financial Inclusion, Financial Services, Report

    MTN, Africa’s second-largest mobile network operator, is set to broaden its service offerings in South Africa by entering the banking sector. The company plans to leverage its extensive customer base to provide accessible banking services, particularly targeting underserved communities. This strategic move aims to enhance financial inclusion and provide consumers with a broader range of financial services.

    Currently, MTN offers financial services through its Mobile Money (MoMo) platform, which provides payment and money transfer solutions across Africa. MoMo enables customers to use their mobile numbers as digital wallets, facilitating transactions without the need for traditional bank accounts. This service has primarily targeted small businesses and low-income consumers who predominantly operate in cash.

    MTN’s expansion into the banking sector involves acquiring a banking licence in South Africa, a move that aligns with the South African Reserve Bank’s (SARB) recent initiatives to grant non-banking entities direct access to the national payments system. This privilege has traditionally been reserved for established banks, but SARB’s policy shift aims to foster innovation and competition within the financial sector.

    “We believe that we should move with the times and open up the system for the entry of non-banks,” said Tim Masela, head of the National Payments System department at the South African Reserve Bank.

    Currently, MTN collaborates with licensed banks, such as African Bank, to offer its financial services. However, with SARB’s recent policy changes, MTN can now seek its own banking licence, eliminating the need for intermediaries. In Nigeria, MTN has already applied for Payment Service Provider (PSSP) and Payment Terminal Service Provider (PTSP) licences, demonstrating its commitment to expanding its financial services footprint.

    The SARB’s decision to open the national payments system to non-banking entities is a significant step towards enhancing financial inclusion and providing consumers with a broader range of services. By allowing fintech companies direct access, the central bank aims to foster innovation and competition within the financial sector.

    MTN’s foray into the banking sector is also part of a broader trend among telecom operators in Africa diversifying their services to include financial solutions. The integration of telecom and banking services has the potential to transform the financial landscape, particularly in regions where traditional banking services are limited.

    However, MTN may face several challenges as it enters the banking sector. These include stringent regulatory requirements, competition from established banks, and the need to build consumer trust in its new banking services. Despite these challenges, MTN’s extensive experience in providing financial services through its MoMo platform positions it well to navigate the complexities of the banking sector.

    By expanding into banking, MTN aims to provide more comprehensive financial services to its customers, particularly those in underserved communities. This move is expected to drive financial inclusion, enhance customer convenience, and contribute to the overall growth of the financial sector in South Africa.

    MTN Group CEO unveils major investment plans for Cameroon

    Related

    Africa Banking Business Financial Inclusion financial services Investments MOMO Payments Technology telecoms
    Share. Facebook Twitter Pinterest LinkedIn Email
    Tapiwa Matthew Mutisi
    • Facebook
    • X (Twitter)
    • LinkedIn

    Tapiwa Matthew Mutisi has been covering blockchain technology, intelligent technologies, cryptocurrency, cybersecurity, telecommunications technology, sustainability, autonomous vehicles, and other topics for Innovation Village since 2017. In the years since, he has published over 4,000 articles — a mix of breaking news, reviews, helpful how-tos, industry analysis, and more. | Open DM on Twitter @TapiwaMutisi

    Related Posts

    Swedfund appoints Siongo Kisoso as Regional Director for East Africa

    How to tune in to Apple’s ‘Awe Dropping’ event on September 9

    SA edtech startup The Invigilator secures $11 million to accelerate global AI expansion

    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    Copyright ©, 2013-2024 Innovation-Village.com. All Rights Reserved

    Type above and press Enter to search. Press Esc to cancel.