MTN's BankTech finds appetite for credit

MTN’s digital lending arm issued $592 million in the first quarter of 2025 according to its Q1 report. “The surge highlights growing demand for microloans and the rising role of telcos in closing Africa’s credit gap,” notes TechCabal.“The lending platform is MTN’s strategic push into banking-as-a-service, offering APIs that enable fintech startups, businesses, and digital platforms to integrate financial services, such as lending, savings, and insurance, directly into their ecosystems. Loans are primarily issued to individuals and small businesses through MTN’s BankTech platform.” The growth was driven mostly in Ghana, Cameroon and Uganda. In Nigeria, MTN operates under the Payment Service Bank rules, and is not able to offer credit. Some observers were surprised that MTN Nigeria did not spin off its fintech arm into a separate company. Its “lending” is currently constrained to Xtratime which allows users to acquire airtime on credit. MTN has ambitions towards digital entertainment and streaming services, which now looks like a new area of competition between banks and telcos.