Feb 26, 2021
Telcos are the new banks, as telecom service providers in Europe and the US continue venturing into the financial sector.
Though mature telco banking endeavors are rare, some operators have identified banking as an opportune avenue for diversification, with differing methods and modes of approach, says GlobalData.
According to GlobalData analysis, telco banking offers are primarily meant to leverage and strengthen an operator’s incumbent connectivity-based business and brand identity, thereby reducing churn, improving customer loyalty and satisfaction, and increasing average revenue per user (ARPU).
There are also possibilities for new, complementary lines of direct revenue generation and opportunities for broader multiservice upsell and cross-sell – all of which build upon expanding service digitalisation.