Absa Group is gearing up to launch its own mobile virtual network operator (MVNO), positioning itself as the final major South African bank to enter the increasingly competitive telecom space. This move follows in the footsteps of rivals such as Capitec, Standard Bank, FNB, and Nedbank, all of which have already established MVNO services.
Nick Nkosi, Managing Executive for Transactional and Deposits at Absa, emphasized that the bank’s approach has been deliberate and research-driven. “We’re aware that we’re entering the MVNO space later than others,” Nkosi said. “But our decision wasn’t based on industry trends, it’s rooted in understanding what our customers truly want. If someone already has a SIM card from a mobile network operator (MNO), we need to offer compelling value for them to consider switching to an Absa-branded SIM.”
Rather than rushing to market, Absa has focused on developing a differentiated offering informed by customer insights. In February, the bank advertised for an executive specialist in MVNOs, with responsibilities including the development of a comprehensive business strategy, signaling its serious intent to build a robust telecom proposition.
Over the past six months, Absa has conducted extensive market research, engaging directly with customers to explore their needs and preferences. While specific details around pricing and service features remain under wraps, Nkosi hinted at a family-oriented solution. This would allow multiple SIM cards to be managed centrally through the Absa banking app, offering users enhanced convenience and security. “Our app is central to the experience—it’s about making mobile services safer and more accessible for our customers,” he explained.
Absa has yet to reveal which mobile network operator it will partner with, options include Vodacom, MTN, Cell C, and Telkom Mobile. Nkosi noted that consistent network quality and nationwide coverage are key factors in the bank’s selection process.
South Africa’s MVNO market has seen rapid growth, particularly among banks. Capitec Connect leads the pack with over 1.1 million active users as of 31 August 2025. Standard Bank Connect and FNB Connect have also gained traction, while Nedbank recently joined the fray with the launch of Nedbank Connect in September.
Despite being a late entrant, Absa is confident in its strategy. “We may be late to the game, but our focus is on delivering a unique and compelling proposition,” Nkosi said. “We’ll continue to update the market as we make progress.”
