South African banks launch MVNOs to boost digital engagement

South Africa's biggest banks are moving beyond traditional banking by launching mobile virtual network operators (MVNOs) to bundle connectivity with financial services. FNB Connect reported a 98% year-on-year increase in data consumption between July 2025 and May 2026, with customers using over 40 petabytes of data and device sales exceeding R600 million (about $36 million). Absa is evaluating an MVNO launch, Nedbank is bundling connectivity with its Greenbacks rewards and digital banking, and Standard Bank now treats connectivity as core infrastructure rather than a peripheral product. Analysts note the projected growth of South Africa's MVNO market—from 4.4 million active SIMs in 2025 to 14.4 million by 2030—is being driven largely by banking-led MVNOs. Banks hold structural advantages: strong brands, deep customer bases, detailed financial histories, established distribution channels and robust customer-service operations, allowing them to bundle handset financing, rewards and credit-linked data packages in ways pure telecoms cannot replicate. By treating data as a loyalty currency, banks are boosting retention and cross-selling of credit, investment and other products. For Nigerian banks facing similar pressures to deepen digital engagement and diversify revenue, the South African experiment raises the question: should they pursue own MVNOs or form strategic partnerships with existing telecom operators to embed connectivity into their ecosystems and improve customer stickiness?

SOURCE: https://techcabal.com/2026/06/24/south-africa-bank-becoming-telcos/