MTN’s BankTech Gives Out $592 Million in Loans in Three Months as Credit Demand Rises
- MTN Group said its BankTech disbursed about $592 million in loans in the first quarter of 2025
- The telecommunication giant disclosed this in its financial statement, saying the figure is the highest since it launched the platform in 2023
- BankTech is the MTN’s strategic push into the BaaS sector, offering APIs to enable fintech startups, businesses, and digital platforms
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
MTN Mobile Money Unit, BankTech, said it disbursed about $592 million in loans in the first quarter of 2025.
The development is contained in the group’s financial statement, which is the highest since BankTech launched in August 2023.
Source: Getty Images
MTN’s BankTech offers APIs to fintech firms
The rise shows the growing demand for microloans and the rising role telcos play in Africa’s credit ecosystem.
The MTN Group’s digital lending arm is the company’s strategic push into the BaaS sector, offering APIs to enable fintech startups, businesses, and digital platforms to integrate financial services, such as lending, savings, and digital insurance into their ecosystem.
TechCabal reports that loans are issued to individuals and businesses via the BankTech platform.
The lending company shows the growing role of telcos in driving financial access.
MTN aims to compete in the digital lending space
Before MTN joined the digital lending ecosystem, platforms such as Safaricom’s M-Shawari, KCB M-Pesa, Airtel Mone Loan in East Africa and Vodacom’s M-Pesa in South Africa were already leading the charge for mobile-based consumer lending on the continent.
These platforms collectively represent a consumer lending marketplace estimated at $247 million, aiming to bridge Africa’s $782 million credit gap.
The MTN company’s growth shows a shift in consumer confidence, reflecting increasing users who embrace telecom-led financial service solutions as credible alternatives to traditional banks.
Top performance records in 2024
The platform began gaining traction in 2024 after disbursing $371.7 million in loans in the first quarter, followed by $359.9 million in the second quarter, $461.5 million in the third quarter, and $546.8 million in the fourth quarter.
The growth led to a record $731.6 million in loans disbursed in the first quarter of 2025.
MTN’s financial reports reveal that the surge was driven by strong performance in Ghana, Uganda, and Cameroon, where MTN’s financial technology services are rapidly growing and digital lending is becoming more entrenched.
MTN’s BankTech banned in Nigeria
Nigeria has yet to participate in the lending growth despite being MTN’s largest market by subscriber base.
MTN Nigeria operates under a Payment Service Bank (PSB) license, limiting it to the provision of basic financial services such as deposits, transfers, and mobile wallets.
The Central Bank of Nigeria (CBN) banned PSBs from offering credit products, limiting MTN’s lending ambition in Nigeria.
The development means MTN cannot operate its digital lending business in Nigeria, despite a surge in demand for credit.
MTN’s Xtratime’s adoption rises
However, MTN operates Xtratime, an airtime-based advance service, allowing subscribers to borrow airtime and repay on their next charge.
The service allows low-income earners and unbanked populations to access short-term value.
According to reports, Xtratime helped MTN generate massive profits in the first quarter of 2025.
Source: UGC
The company reported a 57.9% yearly increase in fintech earnings, hitting N36.1 billion, driven by the growth of Xtratime.
MTN sends a message on network fluctuations
Legit.ng earlier reported that several MTN subscribers in parts of experienced network glitches which affected their ability to browse the internet despite having active data plans.
Social media platforms were flooded with complaints from affected subscribers who expressed dissatisfaction over the unexpected service interruption.
Many of the affected subscribers took to social media to react to the network glitches.
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Source: Legit.ng
