Standard Bank has entered the airtime and data market with the launch of its first mobile virtual network operator (MVNO) service, Standard Bank Mobile, running on the Cell C network.
Stephen Bailey Standard Bank Mobile CEO, says SB Mobile is offering an integrated (rather than a stand-alone) service, which rewards subscription customers with free airtime and data for doing something they do every day – bank.
“Customers also earn free data every time they use their credit , cheque or debit cards,” he says. “We have also done away with data bundles, customers can select the data price that suits them, with no expiry. Data pricing is from 5c per mb.”
Funeka Montjane, CE for Standard Bank Personal and Business Banking South Africa, says: “We are not launching a new mobile network. We are extending our digital offering to our clients. As Standard Bank embarks on an extensive digitisation drive, mobile communication has become a key feature in modern financial services. It’s impossible to separate your phone, from you credit card, insurance or ability to transfer funds across borders. SB Mobile is an extension of our digital offering.
“Expiring data bundles are a thing of the past, customers can choose data pricing that is most relevant to them, they can simply add it to their monthly subscription and will then get more rewards the more they transact.” explains Montjane.
Customers signed up to SB Mobile will not be beholden to onerous terms and conditions to get their airtime or data. Rewards are tiered so that every time they transact they get something back – 1MB of data is given back for every R10 spent on all transactional cards, for instance, at a monthly fee of R39. Youth and inclusive banking clients will pay no fee.
Tiers are based on Elite (R105 free airtime), Prestige (R205), private and professional (R369) and Wealth & Signature (R469 in free airtime). All credit card transactions for signed up SB Mobile clients qualify for 1MB for every R10 and R100 free airtime for the R39 monthly fee.
“We are widening the digital banking experience for customers across the organisation and our intention is to significantly enhance the value they receive, says Montjane . “We are combining free voice and data with cutting edge financial services to deliver exceptional banking experiences and value.”
SB Mobile plans to provide handsets in the first quarter of next year and to add broadband services – like fixed LTE and fibre – shortly afterwards. The current service will provide a branded sim card with a new number, while existing cell numbers can also be retained.
Standard Bank is the 19th Mobile Virtual Network Operator (MVNO) launching through Cell C since 2006.
Björn Flormann, chief executive for Cell C’s wholesale business, comments: “Cell C has seen excellent growth in the MVNO space. It’s still early days, but we estimate the revenue market share of MVNOs in South Africa to be approximately 3%. The model is gaining momentum locally as big brands, like Standard Bank, come on board and more businesses seek new revenue streams.”
Key statistics since Cell C launched its wholesale business unit in 2014 include:
* 19 the total number of MVNOs.
* 1,7-million the number of subscribers added to Cell C via MVNOs.
* 16,3-million the total number of Cell C subscribers including those via MVNOs (as of June 2018).
* R486-million the revenue generated for Cell C from its wholesale partners in the first half of 2018. 51% year-on-year growth from R322-million in the first half year 2017.