In the plight of implementing positive changes, Nigeria’s telecom companies are getting banking licences to support the development of the financial service sector in the country. Analysts believe that the move will become a major competition to banks whose essential prerequisites for ordinary financial exchanges are depicted as exorbitant.
Over the years, it has been quite difficult for Nigerians to process some financial transactions across the country but with the latest development, the process will now be a bit easier.
It could be recalled that on 5th November 2021, Airtel and MTN confirmed that they have gotten the Approval-In-Principle(AIP) by the Central Bank of Nigeria(CBN) for the Payment Service Bank(PSB) license. It is believed that this approval is a big step forward towards fulfilling positive changes in the financial sector.
Reports stipulated that beforehand, the telcos have always shown their interest to be fully involved in financial services in the country. Their large number of subscribers is a good potential to invest in corporate banking operations in the Telecom industry. They plan to actualize these through Airtel Smart Cash and MTN MoMo Agent.
For clarity, the AIP granted implies telcos can overcome any issues in financial consideration and develop their hands in the financial area. The telecom financial service process is improved by making individual sim cards the essential requirement for partaking in the service since many people have access to mobile networks.
Over the years, Nigerians have been persevering through the tedious course of making accounts, lines at banks, administration costs, administration disappointments and so forth since there are no choices.
It is projected that Telcos will play an indispensable role in lessening the gap between financial consideration and guaranteeing sufficient strategy execution.
Nigeria now has five payment service banks, as MTN and Airtel join Glo and 9Mobile, also mobile network operators, in obtaining the license.
