MTN Expands Financial Services with Banking License Pursuit

Telecommunications giant MTN Group is strategically positioning itself for greater financial services penetration across Africa by exploring the acquisition of banking licenses in select markets. The move represents a significant evolution from MTN’s current model, which relies on partnerships with banks to offer lending products.

During a recent press conference, CEO Ralph Mupita outlined this ambitious plan, emphasizing that it would allow MTN to accept deposits directly while expanding its lending capabilities beyond existing partnerships. “We’re beginning to explore whether it makes sense to acquire banking licenses in regions where we have large customer bases and substantial funds in wallets,” he stated.

The company has already built a robust foundation through its mobile money platform, MoMo, which boasts 70.8 million monthly active users and processes an impressive 13 billion transactions valued at $330.5 billion annually. This extensive user base provides MTN with a natural customer base for expanded financial services.

Strategic Focus on Lending Growth

Mupita highlighted lending as “the key growth area now, and in the future,” for MTN’s fintech business. The company sees significant potential to leverage its existing infrastructure and customer relationships to offer more comprehensive financial solutions.

While fintech revenue grew by 1.4% year-on-year to $931.7 million in the first half of 2026, Mupita expressed confidence that direct lending through banking licenses would accelerate this growth trajectory.

Strong Performance Across Key Markets

MTN’s fintech operations have demonstrated resilience despite challenges like service suspensions and network disruptions. Notably, MoMo revenue surged by 17.8%, driven by expanded advanced services in Ghana, Rwanda, Zambia, and Benin.

Nigeria remains a critical market for MTN, generating 30% of group service revenue (around $21 billion) through data, voice, and fintech offerings. The company’s payment service bank and digital financial services businesses in Nigeria contributed significantly to this performance.

Phased Approach to Banking Integration

MTPita emphasized that the banking license strategy will be implemented gradually, with a focus on markets where MTN has established strong customer bases and regulatory support. This approach allows for measured expansion while ensuring compliance and operational efficiency.