Is that it? Yes, “the Central Bank of Nigeria (CBN) has granted approval in principle to MTN and Airtel to operate a payment service bank (PSB) across the country, as the regulator pushes to deepen further financial inclusion in Nigeria.” Are we going to expect those bank charges to disappear because new species of innovators are coming.
The Nigerian financial industry has newcomers that are likely going to stir disruption. The Central Bank of Nigeria (CBN) has granted approval in principle to MTN and Airtel to operate a payment service bank (PSB) across the country, as the regulator pushes to deepen further financial inclusion in Nigeria.
Three years ago, the CBN said it would allow non-financial companies to apply for mobile banking licenses – either as PSBs or Mobile Money Operators (MMOs). The decision was drawn up from the push to increase Nigeria financial inclusion that has for years been limited to financial companies.
Nigeria has a huge financially underserved population of about 38 million adults as of 2020, mostly scattered across rural areas where banks and other financial companies are not operational. Giving telcos license to offer financial services means that rural dwellers will hence have access to adequate financial services.
But before you get carried away, all the valuations of fintechs have not changed much in the GDP of Nigeria. Why? We are just moving the little value from one person to another. It used to take 3 days but now it could go in seconds. MTN and Airtel will join the fray but who will do the really hard work? I have no answer because even myself has no answer! Why? It is really TOUGH.
Nigeria needs a bailout for its future to come because most things are happening at the base of the innovation pyramid. I welcome these new species of banks but I will continue to hope the real builders will emerge. Hope dey.
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Nigeria’s Central Bank Approves PSB License for MTN, Airtel to Offer Financial Services
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