**Telecommunications Products Receive Highest Net Sentiment Ratings Among Banking Products in South Africa**
Telecommunications products have emerged as the highest net sentiment-rated products among banking offerings in South Africa, according to the DataEQ South African Banking Sentiment Index for 2024. This achievement can be attributed to the positive responses to mobile data and bundle options.
**Mobile Virtual Network Operators (MVNOs) Drive Positive Sentiment**
MVNOs, which operate on another network’s infrastructure and spectrum, have been instrumental in driving the positive sentiment towards telecommunications products. These services have gained significant traction, with many banks introducing their own MVNO offerings.
**Capitec Connect Leads the Way**
Capitec Connect has been the most significant driver of conversation, with over 1.2 million active subscribers as of August 2024. The service has seen rapid growth, with the number of subscribers increasing to 1.4 million in just a few months. This has made Capitec Connect the largest banking MVNO in South Africa, surpassing FNB Connect.
**Standard Bank Connect: A Strong Contender**
Standard Bank Connect has also made significant strides, with over 300,000 customers since its launch in 2018. The service has been rebranded as part of June 2024 and has introduced new data and voice packages, while ending its partnership with Cell C and moving to MTN.
**The MVNO Market: A Growing Trend**
The MVNO market has gained significant momentum in recent years, with subscribers almost doubling from just over 2.5 million to under 5 million since 2022. According to a report from advisory firm BMIT, the market is expected to grow to between 11 million and 12 million by 2029, yielding a compound annual growth rate of 18% and outpacing the mobile operator market.
**New Market Dynamics**
The MVNO market has shifted its focus from solely focusing on subscriber numbers to building sustainable businesses from existing customer bases, driving retention for its core business. This has led to new market dynamics, with banking MVNOs competing among themselves and with mobile operators.
**Measuring Customer Value Beyond Price**
The evolution of the MVNO market has led to a shift in how customer value is measured, going beyond merely comparing price per gigabyte. This new market structure is exciting and presents opportunities for banks and financial institutions to innovate and adapt to changing customer needs.
