Sunday, January 24, 2021
  • Markets & Companies
    • Stock Market
    • Companies
    • Appointments
    • Commodities
  • Business & Economy
    • Energy
    • Agricultural Economy
    • Insurance & Pensions
    • Aviation
    • Maritime
    • Road Transport
    • Financial Inclusion
    • Investment
    • Manufacturing
    • Consumer Goods
  • Innovation
  • MSME
  • Empire
  • Opinion
  • Cultural Currents
  • Features
  • AE Magazine
  • Corporate Rendezvous
Financial Street - Latest Business News
No Result
View All Result
  • Markets & Companies
    • Stock Market
    • Companies
    • Appointments
    • Commodities
  • Business & Economy
    • Energy
    • Agricultural Economy
    • Insurance & Pensions
    • Aviation
    • Maritime
    • Road Transport
    • Financial Inclusion
    • Investment
    • Manufacturing
    • Consumer Goods
  • Innovation
  • MSME
  • Empire
  • Opinion
  • Cultural Currents
  • Features
  • AE Magazine
  • Corporate Rendezvous
Financial Street - Latest Business News
No Result
View All Result

Competition heightens as MTN enters Nigeria’s Fintech market

by John Chukwu
September 5, 2019
in Uncategorized
0
Competition heightens as MTN enters Nigeria’s Fintech market
0
SHARES
14
VIEWS
Share on FacebookShare on TwitterShare on LinkedInShare on WhatsApp
  • Facebook
  • Twitter
  • Pinterest
  • LinkedIn

Competition in Nigeria’s financial technology market has been heightened by the entry of telecoms giant, MTN.

MTN launched its Y’ello Digital Financial Services, unveiling its super-agent network service named ‘MoMo Agent’ at an event held recently in Abuja, with experts saying that the telecoms giant had got into a tough market in its bid to bring banking to 36 million Nigerians who are said to be outside the banking circle.

READ ALSO

Bayelsa oil spill: Environmentalist faults visit by stakeholders

WHO to secure 40m doses of COVID-19 vaccine  

Experts say MTN’s biggest markets in the Fintech sector lie in the rural areas of Nigeria, as the cities have been taken up by core financial services providers, which are already rooted in the industry.
“I see a very tough competition for MTN here. This is not like when the company brought GSM, with no immediate competitor. In the Fintech industry, there are already big players, which are traditional with financial services for that matter,” said Nkiru Amah, an accountant.

Read Also:

  • How Africa can accelerate digital transformation, create jobs – Report How Africa can accelerate digital transformation,…
  • Good governance is 'speed dial' for greater tax paymentsGood governance is 'speed dial' for greater tax payments
  • AFF begins '2021 Accelerator Programme' to train tech entrepreneurs AFF begins '2021 Accelerator Programme' to train…

I think MTN should focus on the villages where there are no banks. The telecoms company is wide in coverage and I suppose that it should be able to provide the service in all areas where its network is present.

This is where I think it has its strength,” she added.

Similarly, Steven Olisah, a financial analyst, said “the competition is real,” but noted that since there are regulators, competition would bring out the best in the fintech players.

“This is very good for Nigeria and Nigerians. It is shameful that in the ranking, you find countries like Ghana and Kenya far ahead of Nigeria in Fintech, in a continent where we are called a giant. With MTN coming in, I see the sector changing very fast. MTN should know it’s through the riddle,” he said.

MTN in Nigeria has had a tumultuous history of billion-dollar fines and lawsuits, with the company most recently faced with allegations of illegally repatriating $8.1bn in profits and owing $2bn in taxes. In 2016, it reached a $1.7bn settlement with Nigeria’s government after a protracted SIM card dispute and an initial $5.2bn fine.

“The company (MTN) must have learnt to stay off trouble, especially as we are having issues with South Africa due to incessant xenophobic attacks on Nigerians by South Africans, the home country of MTN. But the telecoms giant is very business-like and has shown that it’s been all about business,” Olisah noted

According to a World Bank report, Nigeria is characterised by a low banking penetration, around 40 per cent in 2017 and a nascent mobile money market, where 90 per cent of rural dwellers are not banked. In the cities, however, existing bank customers can already use their bank accounts to carry out transactions through apps or by typing shortcodes into a phone. MTN believes that its network of MoMo agents can penetrate the market in no distant time.

“The extensive network of MoMo Agents will immediately begin providing safe and accessible money transfer services to underbanked and unbanked people across Nigeria. With this, the company joins ongoing efforts to accelerate the Central Bank of Nigeria’s drive for financial inclusion,” MTN said in a statement after the official launch of the product.

Speaking at the launch, Ernest Ndukwe, chairman, MTN Nigeria board, said, “Here and now, with the launch of this Momo Agent network, both worlds come even closer together in a hybrid model designed to expand access to financial services nationwide.

“Empowered by the Central Bank of Nigeria and the Nigerian Communications Commission, and facilitated by partners in the banking sector, this extensive network of agents will immediately begin providing safe and accessible money transfer services to underbanked and unbanked people across Nigeria. This is of particular importance in places where dedicated physical facilities were not viable or available.”

He said, “The state of play has changed. This is the future. Momo Agents will be employing the power of technology and digital disruption to add value and cater to the present and future needs of the populace.

“Experts state that a country’s sustainable development is inextricably linked with its ability to empower people at the bottom of the pyramid. One central way to do this is by ensuring that they are financially included and can participate fully in the economy as contributors and beneficiaries.

“As it currently stands, 36 million adults, who make up 36.8 per cent of the Nigerian adult population, are financially excluded, and therefore lack access to value-added services such as savings, insurance, pensions and access to government transfers. Our country is at a critical point in its development trajectory and we need everyone on board.”

AThe Chief Executive Officer, MTN Nigeria, Ferdi Moolman, said, “I am excited by the possibilities. We are fortunate to be part of the telecoms industry, which underpins the digital economy and is critical to inclusive development and the future economic growth of this great nation. The launch of the YDFS MoMo Agent is especially significant to us. It further demonstrates our commitment to remain focused on enhancing Nigerian’s access to financial services, and in so doing, connect them to what is most important to them.”

 

 

close

Check your inbox or spam folder to confirm your subscription.

  • Facebook
  • Twitter
  • Pinterest
  • LinkedIn

Tags: FintechJOHN CHUKWUMTNMTN Digital BankingMTN NigeriaNigeriaNigeria's Fintech

Get real time update about this post categories directly on your device, subscribe now.

Unsubscribe

Related Posts

Bayelsa oil spill: Environmentalist faults visit by stakeholders
Business & Economy

Bayelsa oil spill: Environmentalist faults visit by stakeholders

January 24, 2021
AstraZeneca: AZD1222 vaccine met primary efficacy in preventing COVID-19
Empire

WHO to secure 40m doses of COVID-19 vaccine  

January 24, 2021
CBN warns Nigerians against falling victim to cybercrime
Business & Economy

Revised cheque book: CBN tasks DMBs, others on enlightenment

January 24, 2021
renewable energy
Business & Economy

Africa’s post-COVID-19 recovery needs investment in renewable energy – Experts

January 24, 2021
Chevron denies spilling oil in Bayelsa
Business & Economy

Chevron denies spilling oil in Bayelsa

January 23, 2021
Financial Street - nter corporate Okada
Innovation

Cars45, Gokada offer low-priced courier service to Lagosians

January 22, 2021
Next Post
NCC inaugurates implementation committee on blueprint for ICT research

NCC inaugurates implementation committee on blueprint for ICT research

RECENT STORIES

Bayelsa oil spill: Environmentalist faults visit by stakeholders

Bayelsa oil spill: Environmentalist faults visit by stakeholders

January 24, 2021
AstraZeneca: AZD1222 vaccine met primary efficacy in preventing COVID-19

WHO to secure 40m doses of COVID-19 vaccine  

January 24, 2021
CBN warns Nigerians against falling victim to cybercrime

Revised cheque book: CBN tasks DMBs, others on enlightenment

January 24, 2021
renewable energy

Africa’s post-COVID-19 recovery needs investment in renewable energy – Experts

January 24, 2021
Chevron denies spilling oil in Bayelsa

Chevron denies spilling oil in Bayelsa

January 23, 2021
Financial Street - nter corporate Okada

Cars45, Gokada offer low-priced courier service to Lagosians

January 22, 2021
Wari to begin cross-border remittance in Africa, other continents

Wari to begin cross-border remittance in Africa, other continents

January 22, 2021

TRENDING

  • Senegal heavy fuel use hurting earth, says Fortesa boss

    Senegal heavy fuel use hurting earth, says Fortesa boss

    0 shares
    Share 0 Tweet 0
  • Buhari to inaugurate national oil centre – DPR

    0 shares
    Share 0 Tweet 0
  • Biden unveils details of stimulus measures for US economy

    0 shares
    Share 0 Tweet 0
  • ‘Billions At Play’ prescribes solutions for Africa’s energy sector

    0 shares
    Share 0 Tweet 0
  • Wari to begin cross-border remittance in Africa, other continents

    0 shares
    Share 0 Tweet 0
Financial Street - Latest Business News

© Financial Street 2020. All Rights Reserved.

More Links

  • Privacy Policy
  • Terms of Use
  • Contact Us

Follow Us

No Result
View All Result
  • Markets & Companies
    • Stock Market
    • Companies
    • Appointments
    • Commodities
  • Business & Economy
    • Energy
    • Agricultural Economy
    • Insurance & Pensions
    • Aviation
    • Maritime
    • Road Transport
    • Financial Inclusion
    • Investment
    • Manufacturing
    • Consumer Goods
  • Innovation
  • MSME
  • Empire
  • Opinion
  • Cultural Currents
  • Features
  • AE Magazine
  • Corporate Rendezvous