The Central Bank of Nigeria recently added regulation to allow Telecommunication companies to apply for mobile banking licenses and roll out mobile money. This is big. Previously, only banks were allowed to apply and own mobile banking licenses. And banks basically just prevented the Telcos (MNOs) from beginning any mobile money operations. Any rollout of mobile money would have eaten into the banks market. It was more profitable for banks to serve a smaller segment, than worry about trying to reach the broader market.
But MNO’s have a different strategy. Their game is distribution and market share. The profit of MNOs rises as their market share goes up. It’s not a niche market they’re after. They want the whole thing.
So I’m excited when I hear the largest market in Africa is opening up to mobile money. GDP is estimated at $373 billion dollars, with 45 million people still unbanked, and mobile phone penetration at 84%. Those variables all point to a market ready for mobile money. It’s going to be a game changer, and I can’t wait to see the fintech companies that grow up in that space in the next couple years.