Will our fintechs become our mobile service providers?

Looks like finance and connectivity will come together soon in our devices.

Recently, UK fintech Monzo has been looking to enter mobile services, exploring the launch of its own digital SIM, subsequently positioning itself as a Mobile Virtual Network Operator (MVNO) by leasing network capacity from an existing operator.

Bundling finance and connectivity does makes sense. Unlike traditional MVNOs that compete mainly on price, fintechs can bring together mobile services directly into their financial apps.

The move reflects a broader trend among fintechs. Apart from Monzo, fintechs like Revolut, Klarna, Nubank and N26 have also declared similar plays in the last year, indicating that fintechs view telecoms as ripe for disruption.

Bundling finance and connectivity does makes sense. Unlike traditional MVNOs that compete mainly on price, fintechs can bring together mobile services directly into their financial apps. A single platform for money management and connectivity strengthens customer lock-in and opens the door to innovative bundles. We can expect discounted international calls tied to travel cards, or data allowances linked to spending behavior.

At the same time, MVNOs complement host operators instead of threatening them. Carriers like Vodafone and EE use MVNOs to target price-sensitive, mass-market customers, while they focus on premium and enterprise subscribers. This means these fintechs won’t be competing directly with the host networks, but rather with other low-cost MVNOs, where their robust brand recognition and digital-first distribution gives them a clear advantage.

Moreover, demographics and trust are on the side of the fintechs. Traditionally, MVNOs succeed with younger, budget-conscious consumers, a crowd that fintech apps already attract. By layering mobile services onto existing banking relationships, fintechs can outspread the trust they’ve built in financial services into telecoms. This overlap can help them to capture share in what is otherwise a highly competitive, low-margin market.