How Fintech MVNOs Create Recurring Revenue

Fintechs already have something that many new mobile providers need to build from the ground up: an established digital customer base.

Customers may already use a fintech for payments, banking, lending, subscriptions or other digital financial services. Adding branded mobile creates an opportunity to offer another paid service through channels customers already know and use. A fintech is a technology-driven financial services company that delivers services through apps and online platforms. Through a Mobile Virtual Network Operator (MVNO) model, a fintech can add mobile connectivity under its own brand without owning a radio network.

The opportunity is straightforward: use an existing digital platform to introduce mobile plans and connectivity services, while the technology and operational foundation behind the service is provided through an MVNO platform and supporting partners.

For the broader reasons financial brands are moving into mobile, read Why Fintechs and Banks Are Entering the Mobile Market.

A fintech can create recurring mobile revenue by offering branded mobile plans and services to customers it already serves. These may be sold as standalone subscriptions or connected to existing financial products.

The commercial advantage is that the fintech can introduce mobile through an app, account or digital service customers already use. Monthly plans, data services and add-ons can then sit alongside the fintech’s existing products as another paid service.

The exact proposition will depend on the customer base, pricing and the role mobile is expected to play within the wider business. The aim is not simply to sell connectivity, but to add a service that fits naturally within the fintech’s existing offer.

A fintech MVNO can offer branded mobile plans, data services and add-ons as part of its customer proposition. For some fintechs, mobile may be a standalone subscription. For others, it may sit within a paid account, travel service or broader digital package. Additional data or roaming-related services can also be included where they are relevant to the customer base.

The proposition should remain simple and connected to what customers already value from the fintech. A travel-focused financial brand, for example, may see a clearer fit with mobile data and roaming than a fintech built around a different customer need.

The strongest offers are therefore not necessarily the ones with the most services. They are the ones where mobile has a clear role within the existing proposition.

Fintechs often manage their services through apps and digital platforms, giving them a natural channel for introducing branded mobile. A customer could manage a mobile plan alongside other services offered by the fintech, depending on how the proposition is designed and integrated. Mobile can therefore become part of an existing digital experience rather than requiring a separate customer journey.

The brand remains at the centre of the experience while the telecom technology and network access sit behind the service. This is where the MVNO model becomes particularly relevant: the fintech can focus on the proposition and brand while relying on technology and service partners for the telecom capabilities needed to operate the service.

Launching an MVNO requires more than access to a mobile network. The service also needs the technology and operational capabilities required to manage customers, services and revenue. Depending on the chosen operating model, this can include billing and charging, subscriber management, service provisioning, customer care, integrations and the systems required to manage the mobile proposition.

A fintech does not need to build all of this internally. An MVNO platform can provide the foundation needed to connect the financial brand with mobile network services and support the day-to-day operation of the proposition. The amount of responsibility the fintech takes on depends on whether it chooses a Reseller, Light or Full MVNO model. For a detailed comparison, read Which MVNO Model Is Right for a Fintech?

Enghouse Networks provides the technology and operational foundation needed to support branded mobile services across different MVNO operating models.

This includes the systems required to manage subscribers, billing and charging, service activation, customer care and integrations with the wider business environment. The objective is to give fintechs the telecom capabilities behind the service while allowing them to concentrate on the customer proposition and brand.

That means a fintech can approach mobile as an extension of its existing business rather than as a completely separate telecom operation.

The result is a clearer division of responsibilities: the fintech brings the brand, customers and proposition, while Enghouse provides the technology and operational capabilities needed to support the mobile service.

For fintechs with an existing digital customer base, branded mobile can provide another recurring service within the wider proposition.

Download MVNO Revenue Models That Fit Fintech Growth for a closer look at how fintechs can approach mobile revenue models and the commercial considerations behind them.