MTN Pursues Banking Licenses to Compete in Fintech

MTN Group, Africa's largest telecommunications operator, is exploring banking licenses in select markets to deepen its involvement in fintech and position lending as a significant growth area. CEO Ralph Mupita announced this initiative on Tuesday, indicating MTN's intent to compete more directly with digital lenders such as OPay and Moniepoint, which have rapidly gained traction in Africa's credit and payments sector.

Currently, MTN offers loans through partnerships with banks, but the company is considering a shift to direct lending. Mupita noted that the exploration of banking licenses will focus on markets with large customer bases and substantial mobile wallet balances, allowing MTN to take deposits and lend from its own balance sheet.

This transition will be selective and gradual due to associated risks. Additionally, MTN is expanding into digital infrastructure, planning to build AI-enabled data centers in South Africa through a joint venture with an undisclosed UAE-backed investor, targeting an initial capacity of 150 megawatts across South Africa and Nigeria.