MTN is using big data to increase financial inclusion

Mobile network operator MTN is revolutionizing the financial landscape in Africa by harnessing the power of big data. Stephen Frank-Kola, the Vice President for Digital Business, Data Analytics, and Business Development at MTN, recently shared insights on CNBC Africa about the company's innovative use of data analytics to drive financial inclusion in the continent. Frank-Kola highlighted that MTN has already embarked on projects in Ghana, Zambia, and Uganda, where big data is being utilized to facilitate financial services for individuals who have previously been excluded from the formal financial sector. Partnering with companies like Jumo, approximately 80% of the individuals seeking financial assistance are first-time users of financial services, indicating the significant impact of big data on expanding financial inclusion. The shift towards evidence-based decision-making and data-driven culture within businesses is crucial for the successful implementation of big data analytics. Frank-Kola emphasized the importance of fostering a data-driven culture within organizations to pave the way for utilizing big data effectively. Employing tools such as open-source systems like Hadoop enables businesses to process both structured and unstructured data in real-time, facilitating dynamic decision-making processes. While MTN has yet to fully monetize its data analytics initiatives, the company envisions a future where personalized services tailored to individual preferences and needs will enhance customer experiences. By leveraging big data, MTN aims to offer targeted promotions, upgrades, and notifications to customers based on their usage patterns and preferences. Addressing concerns about privacy and data protection, Frank-Kola emphasized the importance of regulatory compliance and user consent. MTN ensures that data usage is based on an opt-in basis, allowing customers to control the extent of data utilization for personalized services. By enabling customers to customize their data preferences, MTN strikes a delicate balance between providing valuable insights and respecting individual privacy. Furthermore, Frank-Kola highlighted the wide-ranging applications of customer data beyond telecommunications, including healthcare, insurance, and financial services. By leveraging the data available through mobile transactions and usage patterns, businesses can streamline processes such as loan applications and personalized services, enhancing efficiency and customer satisfaction. In conclusion, MTN's innovative approach to using big data for financial inclusion underscores the transformative potential of data analytics in driving economic empowerment and access to financial services across Africa. By harnessing the power of data-driven decision-making, MTN is paving the way for a more inclusive and personalized financial landscape in the region.