Standard Bank Connect to offer internet deals

Standard Bank Connect will add prepaid products and home internet packages to expand its offering to customers following its move to MTN’s network.  

A unit of South Africa’s biggest bank, Standard Bank Connect roams on MTN’s network to offer its banking customers data and voice on post-paid or contract at lower prices compared to some offered by mobile network providers. 

“The next iteration would be a prepaid product that we’re bringing to the market. In terms of home internet, we used to offer fixed wireless access [but] because of our platform, we paused it. So, there’s an intention to reintroduce it back into our product portfolio, that is in our roadmap. We also want to design a product that makes sense to our mission of keeping our community connected,” said Kartik Mistry, head of Standard Bank Connect.

There are other parties available to do it. Before, a customer walking into a bank would never have considered that I can walk into a bank to get a voice and data product. But that’s shifting, and the business case is stacking up on that.

—  Kartik Mistry, head of Standard Bank Connect

The unit operates as a mobile virtual network operator (MVNO) and started its services roaming on Cell C. In June last year, it signed a new wholesale contract with MTN, and is in the process of migrating its subscribers from Cell C to the MTN platform. 

Mistry said over the past few months they have added “a whole bunch of features” to their products. “Now you can upgrade and downgrade at any point in time, so really nice flexibility for customers. And what we are focusing on now is, how do we ensure that our customers experience that value. So we are very pleased with the growth that we’re seeing, and how customers are perceiving our product. And we think the opportunity is great in the future.”

There are about 20 MVNOs, including Shoprite, TFG, Mr Price, FNB and Capitec, which have integrated telecoms products and services into their loyalty and incentive programmes in a bid to retain and attract customers. The MVNO market is estimated to be about 5% of the total telecoms, sector and this is expected to increase to 12% in the next five years.

The pace at which the market and technology are shifting has enabled the growth in MVNOs, said Mistry. “The regulator has a part to play in that. So that has definitely opened up the opportunity for MVNOs. So the market is beginning to understand that I don’t necessarily need to go to my traditional network operator to get access to data and voice services,”  he said.

“There are other parties available to do it. Before, a customer walking into a bank would never have considered that I can walk into a bank to get a voice and data product. But that’s shifting, and the business case is stacking up on that,” said Mistry. 

He said over time, the company will look at offerings for its small, medium, enterprise and business customers.