MTN Nigeria begins the dislocation of Nigeria’s banking sector. Yes, MTN MoMo Agency is expanding and banking will never be the same; Abuja, Lagos, Port Harcourt, Ibadan and Kano are done, with the beautiful Owerri next. There is something amazing about telcos – they know how to build a tribe. It requires a special capability and compensation model to have those airtime sellers diligently do their jobs across every part of Nigeria. If they deploy such know-hows in the mobile money domain, MTN will have more “banking” customers than all total unique bank customers in Nigeria combined, by 2025 (that number is less than 40 million today using BVN).
Change is coming and even fintechs will experience a new dimension of competition. MTN Nigeria begins with 61 million customers into MoMo agency – that is more than the population of South Africa. As Samuel reports, the agents came out in Kano because everyone hopes the airtime party model will continue into MoMo agency. They will not be disappointed because telcos are vertically amazing when it comes to taking care of their tribes and chains of command!
The launch witnessed a massive turn up of traders who were introduced to the platform; many were registered as MoMo agents, and there was a raffle draw that enabled attendees to win gifts of household items.
MoMo was launched in August 29, 2019, as part of MTN’s support to Central Bank of Nigeria’ drive for financial inclusion. Since then, it captured Abuja, Lagos, Port Harcourt and Ibadan, the Oyo State capital. MTN said that the next city MoMo will be launched in is Owerri.
Banks and fintechs – the beast has arrived, and you need new playbooks. The liberation (of customers) is here and a new basis of competition is playing. Your playbook must evolve, otherwise, it would be extinction.