South African mobile operator MTN is expected to begin offering financial services in Nigeria after it received a license from the Nigerian central bank in July.
Yello Digital Financial Services Limited, a fintech subsidiary of MTN, is expected to offer services that will help MTN compete with Nigeria’s banks, according to VenturesAfrica.
Nigeria has an unbanked population of around 60 million people, which represents 31.4 percent of the total population. The government needs them to become “banked” to achieve its goals of financial inclusion by 2020.
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In 2018, the Nigerian central bank announced that it would allow telecom companies to provide banking services that are aimed at giving Nigerians without bank accounts access to mobile money services and including them in the financial system, Africabusinesscommunities reported.
MTN runs Nigeria’s biggest mobile phone network, serving around 61.5 million people in Africa’s largest economy.