MTN Group is exploring banking licenses in select African markets, marking a strategic pivot that would allow the telecom operator to accept deposits and lend directly from its own balance sheet. Currently, the group relies on banking partners to back its credit services. Group CEO Ralph Mupita stated that this selective, gradual transition will target markets with large customer bases and significant mobile wallet deposits, building on high-growth credit markets like Ghana and Uganda.
The strategy allows MTN to move beyond basic payments and gain greater operational control over its customer financial relationships. In 2025, MTN’s Mobile Money (MoMo) platform processed $500 billion in transaction value across 70 million customers, with facilitated loan values surging over 80% year-on-year to $3.5 billion. Additionally, MTN's fintech operations generated approximately N43 billion in revenue per quarter in late 2025. Transitioning to balance-sheet lending lets MTN capture deeper value from these established financial ecosystems.
While direct lending offers greater strategic autonomy, it exposes MTN directly to credit risks and stringent banking regulations traditionally carried by its partners. Consequently, any expansion is expected to be gradual.
Investors should monitor local regulatory responses, especially in markets like Nigeria, where MTN’s existing MoMo Payment Service Bank (PSB) license operates under tighter restrictions than a conventional commercial banking license. Separately, MTN is expanding its digital infrastructure, launching a joint venture to build 150 megawatts of AI-ready data centers in South South Africa and Nigeria.
