Banking group Absa is preparing to launch a mobile virtual network operator, making it the last of South Africa’s largest banks to enter the MVNO market.
Nick Nkosi, managing executive for transactional and deposits at Absa Group, told TechCentral in an exclusive interview on Friday that the bank has been conducting research with customers to determine what kind of value the bank would have to offer to get them to switch to an Absa-branded Sim card.
“We acknowledge that we are late to the party when it comes to MVNOs, but we have been intentional in not doing it just because other banks are doing it. It is about our customers; if someone already has a Sim card from an MNO (mobile network operator), then why would they switch?” said Nkosi.
“Our aim was not to be the first to market but rather to develop a unique offering based on customer insights.”
Absa in February advertised for the role of an executive specialist in MVNOs, listing the development of a business strategy as one of the key requirements for the position.
Nkosi said the research was conducted over the last six months via customer conversations through market research groups. Absa isn’t disclosing details regarding pricing and services yet, but Nkosi hinted at a family-orientated offering, where multiple Sims can be managed centrally by one customer through the Absa banking app. “We lead with the app because it is really about bringing safety and convenience to our customers,” said Nkosi.
Nkosi did not say which MNO – Vodacom, MTN, Cell C or Telkom Mobile – Absa is going to partner with to provide the infrastructure backbone that will help bring its MVNO to market. However, he said consistent network quality and availability anywhere in the country formed part of Absa’s key considerations in making that decision.
Late to the game
Although the South African MVNO market is booming in general, banking sector MVNOs are among the largest and most successful of any industry that’s launched them. Leading the charge is Capitec Connect, with more than 1.1 million active customers as of 31 August 2025.
Also doing well are Standard Bank Connect and FNB Connect. Nedbank is the most recent bank to enter the market with Nedbank Connect, launched in September.
Read: MVNO boom is reshaping South Africa’s mobile market
“We might be late to the game, but what is important to us is to provide a unique proposition based on research. We can assure our customers that our offering will be compelling, and we will update the market as we make progress,” said Nkosi. – © 2025 NewsCentral Media
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