Airtel set to deploy for full PSB operation after licence from CBN
WITH A TRACK RE CORD ACROSS AFRICA AND IN ASIA FOR MO BILE BANKING OPERATION, Airtel Africa is expected to spend little or no time before deploying for full Payment Service Bank (PSB) operation following clearance and full licensing by the Central Bank of Nigeria (CBN), it has emerged.
It is expected that the telecom giant will piggyback on its experiences and expertise in other jurisdictions to quickly get into play recognising that its licence from the CBN is to set up and operate a mobile money unit as a subsidiary of the group in Nigeria to be known as SMARTCASH Payment Service Bank, affording the group the opportunity to deliver a full suite of mobile money services into Nigeria.
The company, already basking in the euphoria of the approval weekend told the investing public through the Nigerian Exchange that the new licence will enable it to expand its digital financial products and reach millions of Nigerians who do not currently have access to traditional financial services, and in also deepen the financial inclusion pursuit of the CBN and the Nigerian government.
The PSB licence allows operators to open mobile money wallets, accept deposits from individuals and corporates and also carry out payments and remittances which are inclusive of inbound cross-border and foreign currency remittances, personal remittances to authorised FOREX dealers,
Aims to drive Nigeria’s financial inclusion strategy
among other capabilities as stated in supervisory frameworks from the apex bank.
PSBs are also permitted to issue debit and prepaid cards in their name as well as investment services such as investing in FGN and CBN securities.
The mobile money campaign in Nigeria has been spearheaded by deposit money banks and this bank-led strategy has achieved some positive results and helped to boost the inclusion rate.
But Nigeria’s financial penetration rate remains considerably below potential with one of the worst rates of financial exclusion in the world. In a 2020 study by Efina on financial services in Nigeria, over 36 percent of Nigeria’s adult population was reported to be financially excluded. This compares with seven percent in South Africa, while the likes of Kenya and Namibia were 11 percent as of 2019, and 22 percent as of 2017.
The foray by the telecoms companies into the mobile money space has been described by experts as a laudable one, and they see the move as a big step toward driving financial inclusion and achieving the CBN’s financial inclusion target, especially with the knowledge that in several other countries telecommunication networks have been at the forefront of increasing mobile money penetration.
In the same vein, given the unparalleled reach of GSM network operators across the country, and with MTN Nigeria and Airtel Nigeria covering over 90 percent of the nation’s population, their active engagement in the mobile money space will help increase financial access.
An apparently elated Airtel said in the statement, “More details regarding the commencement of operations will be presented with our full year results announcement in May 2022.”
Segun Ogunsanya, chief executive officer, Airtel Africa, said: “I am very pleased that Smartcash has been granted approval for a full PSB licence to operate a service bank business in Nigeria and we are now working towards the commencement of business. This licence enables us to expand our digital financial products and reach the millions of Nigerians that do not currently have access to traditional financial services. We are delighted to be able to pursue our shared agenda with the Nigerian Government, the CBN and traditional financial institutions to further deepen financial inclusion in the country for the benefit of all citizens and the Nigerian economy.”