
Customers of telecommunication company, Airtel Africa, will soon be able to request for loan from Ecobank after the network provider and the lender reached an agreement. Such partnership is not the first of its kind as Diamond Bank (now Access Bank) and MTN Nigeria also have a partnership.
The partnership between Airtel Africa and Ecobank Transnational Incorporation (ETI) is for the network provider’s Airtel Money service which the company is also planning to offer in Nigeria after the Central Bank of Nigeria (CBN) approved the operation of the telecoms firm as a mobile money operator. MTN Nigeria has already started its Mobile Money service in Nigeria, called MoMo. According to a statement on the Nigerian Stock Exchange (NSE), which was seen by Nairametrics, the partnership is still subject to regulatory approval. This partnership opens both companies to a wider audience as Airtel Africa currently operates in 14 countries, while Ecobank operates in 33 countries across Africa as well.Airtel : More financial opportunities for those in need of capital
The deal is expected to create more access to financial opportunities for those in need of capital, and also provides a payment platform for both companies’ customers. In Nigeria alone, Airtel has about 47.7 million users. Although, the customer size of Ecobank in Nigeria is not publicly stated, the lender is spread across a number of locations across Africa, while Airtel has a large customer base across Africa as well. Aside the access to funds, the partnership will enable the customers perform various mobile transaction between them, including product savings, international and domestic transfers. It was also stated that Ecobank account holders will be able to make bulk disbursements, such as payroll payments, directly into Airtel Money customer wallets. Also, Ecobank will issue both virtual and physical debit and pre-paid cards to Airtel Money customers. The partnership comes at a period banks are being tipped to lose their position and customers in banking to Fintech companies. The partnership between Airtel and Ecobank shows that two organisations cannot do without the other if the CBN is to deepen financial inclusion within the country.