On April 11, 2018 the Nigerian banking group Ecobank and the South African MTN telecommunications giant signed a partnership. Their aim was to increase financial inclusion in Africa and provide banking to Africa’s unbanked population through mobile money.
According to a close source, they aim to do this by offering mobile money and digital banking to their users. This includes “leveraging each other’s assets that will ultimately offer more value to their respective customers across the continent.” They equally said in a statement:
“The use of network will enable the link between MTN’s large subscriber base and Ecobank’s trail-blazing digital banking products to provide instant bank accounts and remittances through Africa’s largest bank”.
Furtheremore, they aim to leverage their assets to “digitise international remittance and foster product innovation in the field of mobile saving and lending. As well as offer digital payment solutions to consumers, merchants and corporates”.
Rumours have it that the partnership could just be one of MTN’s many strategies to extort money from its customers. In reaction , Ecobank’s Group CEO withsays the rumours and states that the partnership is for the benefit of their customers in Africa.
Benefits of the Mobile Money Partnership
This also allows them – Ecobank and MTN Mobile Money customers to transfer money between mobile money wallets and bank accounts.
Furthermore, Africa will need to digitize financial services to rapidly scale up client acquisition and patronage. As such, MTN and Ecobank are taking the big step today at this grand event to support this agenda.
Therefore, MTN Mobile Money customers will transfer money between mobile money portfolios and bank accounts. The new partnership will allow, among other things, to digitize international remittances.
It will equally encourage product innovation in the field of mobile savings and credit. As well as offer digital payment solutions to consumers, merchants and businesses.