MTN Explores Banking Licences to Lend from Its Balance Sheet

In Short

• MTN is considering banking licences in selected markets.
• The goal is to take deposits and expand lending from MTN’s own balance sheet.
• The company says it will still use bank partnerships and will move gradually.

What Happened

MTN says it is exploring banking licences in select markets as it pushes deeper into fintech and lending. The company already offers loans through partnerships with banks. Now it is assessing where a banking licence could make sense.

A banking licence would let MTN take deposits, meaning customer funds can be held as regulated bank deposits, not only as mobile money wallet balances. MTN’s CEO Ralph Mupita said the company is looking at markets with large customer bases and significant “float” in wallets, meaning the pooled funds that sit in mobile money accounts before they are spent or withdrawn.

If MTN secures licences, it could start lending from its own balance sheet. That means loans would be funded directly by MTN’s banking entity, instead of being originated mainly by partner banks. MTN said any shift to balance-sheet lending would be gradual because lending carries credit risk, which is the risk borrowers do not repay.

Why It Matters

MTN’s telecom revenues are mature in many markets, so fintech services like payments, e-commerce, and lending are becoming a bigger growth lever. Lending is often one of the highest-margin products in mobile money, but it is also tightly regulated and can attract consumer protection scrutiny.

For startups and operators in African fintech, MTN’s move could reshape competition in digital credit and deposits. A telco with a large distribution network and strong wallet adoption can lower customer acquisition costs and scale fast.

It also signals a broader trend, mobile money players are looking for more control over financial products, while still keeping partnerships for risk-sharing and market entry where needed.