Beyond Banking: The Emergence of Banks and Fintech as Telecommunications Providers

We could be seeing one of the clearest indications of ‘technological convergence’ in action today, with digital banking and fintech players blurring the lines between finance and telecommunications.

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Finance firms, especially digital banks and fintech firms are increasingly offering mobile connectivity services primarily through the Mobile Virtual Network Operator (MVNO) model. This way financial businesses can create seamless, integrated experiences combining both finance and telecommunications that improve customer engagement and open up diverse new revenue streams.

The finance industry’s shift towards MVNOs is quite timely, as the global MVNO market is experiencing significant growth. According to a report by Grand View Research, the global mobile virtual network operator (MVNO) market size was estimated at USD 88.06 billion in 2024 and is projected to grow at a CAGR of 7.7% from 2025 to 2030. This growth is driven by factors such as the increasing demand for personalized mobile services, the proliferation of Internet of Things (IoT) devices, and the expansion of 5G networks.¹

Meet The Banks Who Are Offering MVNOs

Many of the finance players who are leading this shift are digital banks or fintech firms who can leverage their existing tech and app-savvy user bases. Around the world, tech-savvy users already use banking apps to pay telecommunications bills while also having active cross-border lifestyles. Some digital banks spotted these opportunities and now offer low-cost data and roaming packages while providing loyalty points rewards for digital bank users who pay for the bank’s MVNO services through their account.

This marks the expanding role that the banking industry is playing in reshaping both the financial industry and the telecommunications industry. Partnerships between banks and telcos can now go beyond loyalty rewards and perks and now extends towards introducing mobile connectivity as a legitimate part of their financial offerings.

Here are some banks who have successfully launched their mobile connectivity offerings:

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Drivers and Synergies: Revenue, Efficient Acquisition, and Loyalty

The digital bank MVNO examples above show that there are real business results to be gained from offering mobile connectivity.

Revenue Diversification

By bundling telecom and financial services, banks can create innovative offerings that attract and retain customers, generating new revenue beyond traditional banking fees. Additionally, cross-selling opportunities multiply: a bank-MVNO can upsell insurance plans for mobile devices, financing options for new smartphones, or instant micropayments for telecom services, boosting profitability.

Lower Customer Acquisition Costs

A major expenditure for any new telecom operator is customer acquisition. Banks meanwhile already possess a large existing base of customers who trust them. This existing base could lead to savings from cross-selling plans to them compared to the cost of acquiring new customers from scratch.

Capitec has potentially millions of existing bank app users they already serve that they can cross-sell their MVNO offering.¹⁰

Enhanced Customer Engagement and Loyalty:

Capitec and N26 have shown that customers’ existing behaviours related to both digital banks, telcos, and even their regular travel habits are opportunities for improved customer experiences. 

If users are already purchasing data and air time via the bank app, there is an opportunity to sell connectivity straight within the digital bank app. If users are dissatisfied with existing roaming options in Europe, providing generous roaming options can be a profitable differentiator.  

The Challenges of Banks Transitioning to MVNOs

However, integrating mobile connectivity services poses several challenges for banks which need to be carefully navigated:

Conclusion

Banks’ expanding involvement in telecom is redefining the boundaries between financial services and communications. By harnessing their trusted customer relationships, technological capabilities, and regulatory experience, banks are positioned to disrupt traditional telecom models while enhancing their core offerings. 

This convergence fosters new revenue streams, deeper personalization, and broader financial inclusion. Success for banks in this space will depend on strategic partnerships, technological innovation, and a focus on integrated, customer-centric experiences.

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Curious about how we can help you?

Circles provides a telecom SaaS platform that simplifies the launch, management, and scaling of digital telco brands. It integrates with OSS/BSS systems, CRM tools, and billing solutions, helping banks streamline telecom operations and reduce time-to-market for MVNO services. 

Circles supports banks in monetizing their telecom offerings through personalized, data-driven service packages and financial product bundling, unlocking diversified revenue sources while driving customer loyalty.

This combination of innovative technology and industry expertise makes Circles a strategic partner for any bank aspiring to become a telecom provider and thrive in this emerging hybrid arena. If you are looking for a partner to help transform your business, contact us today or sign up for a demo.