Bharti Airtel runs a wholly owned subsidiary in India called Airtel Payments Bank. The company paid good returns to Airtel as it is now profitable. Rarely do we see banking or finance companies in India become profitable as quickly as Airtel Payments Bank.
Airtel Africa, which is mainly owned by Bharti Airtel, recently launched SmartCash Payment Service Bank. It is a wholly owned subsidiary of Airtel Africa’s banking.
The SmartCash Payment Service Bank can issue debit and prepaid cards to consumers, and facilitate payments and other banking services within Nigeria. The newly established bank subsidiary has received its license from the Central Bank of Nigeria and is headquartered in Lagos.
What will Airtel Africa – owned SmartCash payment service bank do?
According to Ogunsanya, CEO, Airtel Africa said this new bank will offer consumers both banking services as well as mobile financial services which will lead to the last mile connection with the people who are financially excluded. According to data shared by the Financial Services in Nigeria, 36.8% of the adult population is without a bank. This is an opportunity for Airtel Africa to intervene and make an impact with its financial services.
Airtel Africa can certainly learn from the business model of Airtel Payments Bank which led to the company becoming profitable within a very short period of time.
There are many things that SmartCash Payment Service Bank will have to do if it is to make an impact. First, the company will have to communicate how it is a more convenient option than the traditional banks. Second, the company will have to tell consumers how safe the mobile experience would be. Thirdly, in Nigeria, offline retail presence will play a big role in rapidly expanding the brand and business. Airtel Africa can definitely make the SmartCash Payment Service a profitable entity just like the Airtel Payments Bank if the company can do things the right way.
