MTN Nigeria has eventually completed the last phase of the Central bank of Nigeria regulatory system to acquire a banking license. The CBN approves MTN Mobile Money license request to operate the Payment Services Banking system limited to the corporation’s creditworthiness and adherence to fiscal policy.
The MTN MoMo platform has relentlessly operated lucrative financial inclusion under the Y’ello Digital Financial Services (YDFS) umbrella. The MTN MoMo initiative is built to connect the unbanked population to the money market simplified with technology. MTN previously upgraded the MoMo Agent FinTech network with multiple billing channels which promotes a fluid cashless policy.
MTN MoMo now surpasses a mere agent backed by CBN’s license to innovate its financial sector through versatile fintech channels such as bill payment, cash deposit, and withdrawal, as well as data and airtime purchase components customized for the unbanked population in Nigeria. MTN MoMo PSB also serves as a drive to push data connectivity and data agent centers to the underserved population.
MTN Nigeria secretary, Uro Ukpanah addressed the press conference revealing the CBN’s approval to license the MTN MoMo platform for further PSB coverage. Ukpanah’s comment vividly confirms the MTN MoMo PSB license. The press conference theme tagged the same context as the CBN approval letter headline the PSB license notice.
The CBN issued MoMo PSB license headline illustrates: “THE CENTRAL BANK OF NIGERIA GRANTS FINAL APPROVAL FOR MOMO PAYMENT SERVICE BANK LIMITED TO COMMENCE OPERATIONS.”
The CBN regulatory system consent to approve MTN MoMo PSB network licensing in line with the telecom company’s FinTech solutions dedicated to serving the unbanked population with financial inclusion as well as digitizing the Nigerian real-time fiscal relations without segregation per regional creditworthiness.
CBN said the MTN MoMo issued PSB license “will enhance financial inclusion in rural areas by increasing access to deposit products and payment/remittance services to small businesses, low-income households, and other entities through high-volume low-value transactions in a secured technology-driven environment.”
There is a 44% chance that the unbanked Nigerian population has no data connection to the real-time or cloud-based digital infrastructure. Aside from financial inclusion to the underserved marketplace via MoMo PSB, MTN also adds cellular inclusion to its list of technology solutions.
Ukpanah confirmed MTN Nigeria will establish real-time MoMo agents stationed across underserved communities posing as customer care services to aid the PSB complexity services. MTN MoMo PSB network also communicates with designated ATM machines for withdrawal services. The MoMo PSB network also facilitates cash deposits for possible savings.
The PSB financial services are closely related to the commercial bank services due to the ATM access, cash withdrawals and deposits make their financial services similar. Nonetheless, Payment Service Banks exhibit no rivalry threats to commercial banks because the CBN regulatory system licenses commercial banks to serve a broad range of financial inclusion serving as a lender and more while PSBs are licensed to operate limited banking solutions.
MTN Nigeria is enthused to explore the FinTech industry. Still, the telecom company did not disclose the date to officially commence MoMo PSB operations. MTN’s PSB operations affirm the telecom company’s transition toward a conglomerate technology company.
MTN’s ideal transition embraces the FinTech sector that continues to surge. Likewise, the Approval in Principle CBN issued MTN and its telecom counterpart Airtel Nigeria prior to the end of 2021. The CBN is optimistic about MTN and Airtel’s competence to accelerate the PSB ecosystem for financial inclusion.
