Lately, there has been a growing trend that has seen several telecom operators launching into the Fintech space. These companies diversify their product stack and go beyond telecoms into a different avenue leveraging their huge customer base.
Recently, Nigerian multinational telecommunications company Globacom, commonly known as ‘Glo’, has launched a banking payment service platform called ‘MoneyMaster PSB’ to serve both the unbanked and underbanked.
In a statement made by the company, it disclosed that the aim of launching the payment service platform was to empower Nigerians by providing them with unlimited opportunities.
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The Statement reads, ‘’MoneyMaster will be leveraging Globacom’s pan-Nigerian spread and pervasive agents’ footprint in the rural and urban areas as it begins its massive rollout.
‘’To open an account, all the customer needs to do is dial *995# then follow the prompts from a Glo line or from any other telecommunications network as MoneyMaster PSB is network agnostic.
‘’MoneyMaster PSB is poised to redefine the payment service banks’ landscape while driving financial inclusion in Nigeria,’’ it said.
According to Glo, one key feature of the MoneyMaster product is that the customer’s phone number will be used as his or her account number.
It further stated that the company was grateful to the Central Bank of Nigeria (CBN) for granting the opportunity to deepen financial inclusion in Nigeria, using its cutting-edge technology and vast network.
Glo stated that the platform became necessary because there were 133.5 million bank accounts in Nigeria as of December 2021, according to figures released by the Nigeria Inter-Bank Settlement System (NIBSS), with only 54 million BVNs registered as of April 10, 2022.
Also, the company further disclosed that PSB commenced commercial operations on May 30, 2022, while MoneyMaster PSB was granted a payment service bank license by the CBN on August 27, 2020.
Glo joins the likes of MTN and Airtel that have launched fintech services in Nigeria. There is no disputing the fact that a financial revolution is taking place around the globe, with telecom companies among the significant players thriving in the financial technology (fintech) space.
These telecom companies no doubt have broader customer reach and distribution capabilities compared to traditional financial services. Thus, with the development of smartphones and the ability to access banking facilities and capabilities on the go, telcos prove their greater relevance in the financial services segment.
The recent entry of telcos in the fintech space will no doubt heighten competition in the sector, as they get to compete with other telecom companies as well as other fintech companies.