From Minutes to Money: Telecom Firms Bank on Financial Services

The mobile phone’s increasing penetration into global markets is helping blur the lines between telecom and financial services, where digital banks, and especially neobanks, are moving into communications and mobile payments, and telcos, in turn, are branching more fully into finance.

At the end of 2022, PYMNTS Intelligence profiled a trend wherein partnerships with FinTechs or financial institutions (FIs) and telecommunications companies were transforming and boosting financial inclusion in both emerging and industrial economies. The smartphone has been the gateway to access all manner of activities, and PYMNTS surveys showed that more than a quarter of individuals were interested in using banking offerings provided by telecom firms.

More recently, the PYMNTS Intelligence report “How the World Does Digital: A Global Benchmark of Consumer Digital Transformation,” which focused on 11 countries, found that the infrastructure for digital banking and telecom is pervasive, as most populations surveyed have access to and use mobile phones.

Separately, the Global System for Mobile Communications Association estimated that 4.3 billion people have smartphones in hand, but the greenfield opportunity is significant, as 3.4 billion people remain untapped.

Cross-Selling Opportunities

Drilling down a bit, PYMNTS found that Brazil (an emerging market) is a standout, representing the most digitally connected country in our pantheon, with the most “activity days” spent online — 361 days compared to the overall sample of 281. The outsized digital momentum included mobile banking, used by 63% of local consumers in Brazil, as measured weekly.

Last month, Nu Holdings, the company that owns digital bank Nubank, said in a fourth-quarter earnings release that it increased its customer base by 22% overall and estimated that it became the third-largest FI in Brazil, while boosting its customer count in Mexico by 91%.

Its NuCel mobile phone service, which launched in Brazil late last year, is “a mobile phone service designed to transform customer experience and expand the company’s portfolio beyond financial services.” As 2025 dawned, Nubank said NuCel customers would have access to a savings feature, with yields of 120% of the certificate of deposit on customer-deposited amounts, up to 10,000 Brazilian reais (about $1,700), for at least one year.

The Nubank efforts show how cross-platform and cross-company efforts can forge personalized interactions, with the mobile phone at the center, particularly for everyday saving and spending activities.

In another example, Lyca Mobile integrated Revolut Pay into its payment systems. The companies said the joint efforts enable automated payments for subscriptions and bills, and January announcements said most Lyca customers using Revolut have opted to use the automatic top-up feature.

Earlier this month, Verizon launched a long-term partnership with Santander’s U.S. digital banking platform. The cross-selling initiative offers a high-yield savings account on Santander’s Openbank platform to Verizon’s mobile and 5G customers in the United States.

The Verizon + Openbank Savings Account has a rate 10 times the national average and offers customers the ability to save up to $180 a year on their Verizon bills. The partnership “enhances Verizon’s financial service portfolio with added benefits for customers,” according to a March 18 press release.

As part of the portfolio, the company offers its Visa rewards card through which users accrue “Verizon Dollars” as a percentage (up to 4%) on everyday spending categories.