MTN Expands Financial Services Reach

Africa’s largest telecommunications operator, MTN Group, is seeking additional fintech licenses to directly offer lending services across key markets like Nigeria. Currently, MTN facilitates loans through partnerships, enabling over a million people daily to access credit via its platforms.

The move comes as only 4-5% of Africans have access to formal credit, leaving a vast underserved market with an estimated $236 billion funding gap in Nigeria alone. With 70 million active MoMo users and processing over $500 billion annually, MTN already possesses the infrastructure—transaction histories, merchant networks, and mobile wallets—to support direct lending operations.

The Lending Opportunity

The expansion aligns with MTN’s strategy to evolve beyond connectivity and payments. While telecom companies initially competed with banks in digital payments, this move positions them as potential lenders themselves, offering financial services directly to consumers and businesses.

Digital Fraud Concerns Rise

Meanwhile, a TransUnion report highlights that Kenya recorded the highest median loss from digital fraud among African countries surveyed ($835 per victim). Scammers increasingly target e-commerce platforms and leverage social engineering tactics as more Kenyans move online.