Globacom’s Payment Service Bank (PSB), MoneyMaster Comes into Operation

The financial inclusion objective of the Central Bank of Nigeria (CBN) received a boost recently as the Globacom Telecommunications Network officially commenced operations in its PSB subsidiary, Licensed by the Central Bank of Nigeria (CBN) on 27 August 2020 . The CBN licensed the PSBs to provide financial services to many unbanked and underbanked residents in the country as well as about 79million bank accounts without registered BVNs . To bridge this gap, the CBN licensed the PSBs, and they commenced commercial operations on May 30, 2022.

Globacom’s Payment Service Bank (PSB), MoneyMaster Comes into Operation

The financial inclusion objective of the Central Bank of Nigeria (CBN) received a boost recently as the Globacom Telecommunications Network officially commenced operations in its PSB subsidiary, Licensed by the Central Bank of Nigeria (CBN) on 27 August 2020. The CBN licensed the PSBs to provide financial services to many unbanked and underbanked residents in the country as well as about 79million bank accounts without registered BVNs. To bridge this gap, the CBN licensed the PSBs, and they commenced commercial operations on May 30, 2022. Globacom joined other networks providers, MTN and Airtel, that have diversified their product stack beyond telecoms sources to include operations in the PSB subsector of the financial sector, for the benefit of the people and to deepen financial inclusion in the country.

The launch of the financial technology (fintech) services of the MoneyMaster PSB of Globacom came with the introduction of its G-Kala. The G-Kala makes it possible for all prospective customers with Glo lines or any other telecommunications lines to simply dial *995# and then follow the prompts for enrolment. It allows the customers’ phone numbers to be used as account numbers. In order words, the Globacom’s PSB accommodates customers with phone numbers registered with their BVN, in all telecommunications services in Nigeria.

The PSBs licence gives the operators the platform to facilitate payment and remittance services within Nigeria, accept deposits from individuals and small businesses, issue debit and prepaid cards, operate electronic wallets, inbound remittances, and carry out other services in line with CBN regulations. The difference between the commercial banks and the PSBs is that the PSBs are not allowed to grant loans. Because of their nationwide spread, telecommunication services companies provide veritable opportunities for extending financial services to the largely unbaked rural populations (housewives, farmers, petty traders, etc.)  in the different parts of the country, who have over the years been financially excluded. This PSB also introduces the company into a different avenue source leveraging their huge customer base.

 

With the launch of the PSB by Globacom, the four biggest telecommunications companies in Nigeria have all diversified their services along the line of fintech services. While MTN owns MoMo PSB, Airtel has SmartCash PSB. 9PSB, on the other hand, is the payments subsidiary of telecom firm 9Mobile. These moves towards further digitalizing the economy will help revolutionize the financial services ecosystem in the country.