Nedbank, one of South Africa’s largest banks, has quietly launched its own mobile network, Nedbank Connect, exclusive to its customers. This service offers month-to-month plans starting from $9.59 for unlimited calls, SMS, and 3GB of data.Â
This comes days after the bank acquired iKhokha, a local fintech startup, for over $93 million. This deal was finalised to strengthen Nedbank’s digital offering and SME banking edge. Now, in partnership with MTN South Africa, Nedbank has joined the ranks of banks that have crossed into the telecoms territory.
This is not just a side hustle. Nedbank is tightening its digital ecosystem. In an era where users are on the lookout for seamless digital services, Nedbank is betting that mobile connectivity can keep customers closer, while opening a new stream of revenue.Â
MVNOs are a trend in the banking sector. Nedbank is not the first bank to add connectivity to its offerings. Nedbank follows FNB Connect, FirstRand Bank’s mobile virtual network operator (MVNO), Standard Bank Connect, another MTN-powered MVNO, and Capitec Connect, South Africa’s biggest MVNO.
Why do banks go this route? The South African telecoms market size is valued at $10.43 billion. Although it’s not as valuable as the South African banking industry, it’s a promising sector. The South African MVNO market saw a jump in subscribers from 2.5 million in 2022 to just under 5 million in January 2025.
MVNOs may not fully rival traditional telecoms operators, since they depend on their network infrastructure. But they do compete in consumer ownership, bundling, and loyalty. Nedbank bets that with its 7.6 million users, it can tie airtime, rewards, and banking system into one ecosystem, making it harder for them to look elsewhere.