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MTN begins commercial banking services, targets 70m customers

FOLLOWING the approval of the Nigeria Communications Commission (NCC), leading telecommunication giant, MTN Nigeria is set to commence operations with running of a conventional commercial bank.

In a note to the Nigerian Stock Exchange (NSE), the Y’ello brand said the new outfit will be known as MoMo Payment Service Bank Limited.

Commenting on the development, MTN Nigeria CEO, Karl Toriola said the date of commencement will be communicated to the Central Bank of Nigeria (CBN) in accordance with its requirements.

“We want to leverage the financial inclusion drive. We plan to give people who don’t have bank accounts or even ATM cards the opportunity to be able to do banking services.

“And we are leveraging on our size. When we have subscribers of over 70 million spread across Nigeria with our infrastructural spread, we are well-positioned to cover everywhere. That’s exactly what we want to achieve,” he added.

With the approval, telecom giant which started operations in Nigeria in 2001, will now be able to offer services offered by commercial banks except granting credit and processing foreign exchange transactions.

MTN Nigeria (MTNN), which provides one-third of the MTN group sales, saw revenue climb to a record $3.69 billion last year, with profit leaping 45.5 percent resulting to $652 million.

The company generates the bulk of its revenue from voice calls and data subscriptions.

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Naija Times