Fidelity bank card banner Camano banner
MTN delves into insurance business, eyes R270bn in three years

By News Express on 10/07/2019

Views: 320


Africa’s largest mobile operator, MTN, is eyeing R270bn in revenue in the next three years through a plan to offer life insurance products in partnership with Sanlam, the JSE’s biggest insurer by market capitalisation.

The two listed companies said on Tuesday they will be working together to target people who do not have insurance as MTN tries to grow its financial services revenue and Sanlam looks to expand into Africa.

MTN group CFO Ralph Mupita said MTN had identified an opportunity for R90bn in revenue each year for the next three years across their markets.

He said the companies are partnering to leverage Sanlam’s financial services capabilities and capital base while taking advantage of MTN’s significant distribution network with 29-million subscribers in SA.

Specific details are yet to be given about the products to be offered by MTN and Sanlam, as well as how they will work, their costs, time frame and how the revenue will be split.

MTN has been on a strong push in recent years to diversify its business, pursuing new revenue streams in mobile data, enterprise ICT services, wholesale network services, fintech and digital services.

The last few years have seen the rise of fintech on the continent, most famously with Safaricom’s Mpesa. SA banks have entered the fray with FNB’s eBucks offering, Standard Bank with Snapscan, and new digital players like Discovery and Tyme.

The big opportunity is mobile data and mobile money in Africa given relatively low fixed-line and formal banking penetration in most markets, Peter Takaendesa, portfolio manager at Mergence Investment Managers, said.

Mupita said 6% of MTN’s services revenue comes from fintech, but the company’s aim is to get this up to 15% across the group.

MTN has financial services products in 14 of its 21 markets and aims to add another four. ,

Mupita added that fintech was much less capital intensive than their voice and data business.

Sanlam group CEO Ian Kirk said Sanlam had invested a lot in “insure tech” and sees this partnership as a good way to expand its footprint, starting in SA and moving into the rest of Africa.

Kirk said MTN’s dominance on the continent is what made the partnership attractive.

This comes as a competitor, Liberty Group, is scaling back its Africa business to focus on SA to regain lost market share locally.

With the ever-changing disruption to businesses brought on by technology, Kirk said Sanlam had to evolve the way it operates to keep up with the changing times and attract new clients.

Felix Kamenga, MTN SA chief officer for mobile financial services, said the partnership’s first life insurance product will be delivered in the fourth quarter of 2019 with a “digital twist”.

The companies plan to launch the product in SA first before moving into other markets. Funeral cover will also be offered.

Mupita, a 20-year insurance industry veteran and former CEO of Old Mutual’s emerging markets unit, said he has been personally involved with the product’s development.

Kamenga said MTN planned to target mainly “mobile savvy” youth and young adults.

The telecoms sector is in transition, says Takaendesa, but it is still too early to tell if financial services will give operators the revenue growth needed in the face of a declining voice business. (Business Day SA)

Source News Express

Posted 10/07/2019 12:27:55 PM

 

 

CLASSIFIED ADS

 

You may also like...
42 candidates to miss 2018 SSCE at Bayelsa...

Dogara hails IDP students for exceptional performance in...

INEC, APC have struck deal to rig today’s...

How Ex-Chief of Air Staff acquired properties with...

Rivers Govt. announces restriction of movement as monthly...

The biggest problem confronting Nigeria and Africa

One killed, 12 trapped as shopping complex collapses...

Troops nab satanic Alhaji who leads Boko Haram...

Benue State: Is same-sex marriage a priority? asks...

I wan do my birthday party

Buhari and the Ruga malcontents

Abam-Arochukwu Road to be ready in December, Gov....

 

Latest News Special Force detects location of missing aid workers, arrests Boko Haram Informants Okowa greets Ondo Governor Akeredolu at 63 Four killed over witchcraft allegations Pastor beaten in church by members COZA saga: Why we invited Timi, Busola Dakolo – Police Oyegun slams Oshiomhole: Stop disgracing APC, Edo NYSC to involve ICPC in mobilisation of Corps members Buhari shuns Aso Rock hospital Nigerian Army trains 259 officers on counter-terrorism operations Ministerial nomination in Akwa Ibom set to hit stalemate Buhari condemns killing of 37 villagers by cattle thieves Declare your assets too before dipping hands into LG funds – Suspended chairmen tell Gov. Dapo

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (510,929 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (431,820 views) Shameless Genevieve Nnaji exposes breasts in public (373,882 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (316,993 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (282,772 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (247,391 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (239,604 views) 10 cars more expensive than Jets (224,503 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (221,469 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (209,036 views) Lagos plane crash: Journalist releases victims’ names (188,584 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (187,169 views)

 

NLNG Job Vacancy

CBN banner advert

UBA Wise Savers Promo

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (97) Business & Economy (4,359) Business Verdict (76) Columnists (1,075) Complaints & Requests (95) Enterprise & Opportunities (211) Entertainment (636) Features (781) Global Business Monitor (396) ICT Monitor (54) International (3,734) Interview (194) Live Commentary (30) Love Matters (164) Maggie's Blog (342) News (48,904) Opinion (1,293) Pidgin (17) Politics (11,177) Religion (1,052) Sports (2,106) Stock Watch (39) AMA & Al Jazeera Global Update

 

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera