Why South Africa's banks are becoming telecom companies

It's a chilly winter morning in the bustling streets of Johannesburg, and the sounds of the city are alive with the hum of mobile phones and the chatter of pedestrians. Amidst this vibrant backdrop, a quiet revolution is unfolding in South Africa's banking sector. FNB, one of the country's largest banks, has been quietly building a mobile virtual network operator (MVNO) business, FNB Connect, over the past decade. This shift has implications that go beyond the financial sector, forcing us to rethink what it means to be a bank in modern South Africa.

South Africa's biggest banks are no longer just competing for deposits, loans, and payments. They're now battling for something more valuable: the digital infrastructure that powers customers' everyday lives. Over the past decade, lenders including FNB, Capitec, Standard Bank, and Nedbank have built mobile virtual network operator (MVNO) businesses, while Absa is preparing to join them. This move marks a significant shift in strategy, as South Africa's banks increasingly see connectivity as a way to win a larger share of customers' daily digital lives.

For FNB Connect, the bank's MVNO, telecom has moved far beyond selling airtime and data bundles. Under the leadership of Sashin Sookroo, CEO of FNB Connect, the business has evolved into a trusted, customer-centric value driver that innovates within FNB's broader ecosystem. Today, the bank views its MVNO as a customer engagement platform, a data-driven business, and a contributor to non-interest revenue. Sookroo emphasizes that connectivity now sits at the centre of how the bank attracts and retains customers.

FNB Connect plays a dual role within the ecosystem: as a customer acquisition channel, attracting customers seeking affordable access to the latest devices and integrated banking benefits, and as a relationship deepening tool. According to Sookroo, FNB data consumption on its network grew 98% year-on-year between July 2025 and May 2026, with customers using more than 40 petabytes during the period. Device sales exceeded R600 million ($36 million), and Sookroo revealed that customers who use both banking and telecom services are significantly stickier. Multi-product customers show higher retention, lower propensity to switch, and greater lifetime value.

The South African experiment with ecosystem-led banking could offer an early blueprint for how banks across Africa deepen customer loyalty and grow beyond traditional financial services. With South Africa's MVNO market projected to more than triple from 4.4 million active SIMs in 2025 to 14.4 million by 2030, driven largely by banking MVNOs, the country's shift raises a bigger question. Why are banks suddenly behaving like telecom companies? The answer may lie in the power of connectivity to drive customer engagement and loyalty.

• FNB, Capitec, Standard Bank, and Nedbank have built mobile virtual network operator (MVNO) businesses over the past decade.
• Absa is preparing to join them.
• South Africa's MVNO market is projected to more than triple from 4.4 million active SIMs in 2025 to 14.4 million by 2030.
• FNB data consumption on its network grew 98% year-on-year between July 2025 and May 2026.
• Device sales exceeded R600 million ($36 million).

As I reflect on the quiet revolution unfolding in South Africa's banking sector, I'm struck by the implications of this shift. Banks are no longer just lenders; they're now players in the digital ecosystem, using connectivity to drive customer engagement and loyalty. This is a development that will have far-reaching consequences for the financial sector, and one that will be worth watching in the years to come.