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Around the world, banks are embracing e-SIM technology as a fast and flexible way to include mobile plans with their premium bank accounts and credit cards.
Mobile is a surprisingly strong fit with banking. Banks typically launch mobile plans to complement their existing services and extend their brand into more of their customers’ lives.
To help you understand this opportunity, we have explored several recent examples of banks seeing success with mobile services.
As we shall see in the following examples, with some clever strategy mobile can be used to win high-value customers, upsell low-value users, and deepen the utility of travel cards and other banking products.
The US-based digital bank Zolve launched its own Zolve Connect mobile service in August 2023 targeting expat and migrant communities.
More than one million people relocate to the United States every year. Zolve enables migrants (primarily those coming from India) to setup US banking, insurance, and telecom services ahead of their move, so everything is sorted by the time they fly out.
Building on their existing Zolve banking brand, Zolve Connect is a clever bundle play which fits neatly into the needs of global migrants. It solves a key pain point for migrants coming to the US, where getting a mobile plan is usually difficult without a local bank account.
With Zolve, customers can kill these two birds (banking and mobile) with one app.
Moreover, Zolve can leverage their own first-party data to offer a better customer experience. They already have all the requisite customer details (gathered as part of onboarding) – and can sign up new mobile services in minutes using this data.
Distribution is another important part of the Zolve customer experience. Typically migrants would have to wait several days to purchase and activate a mobile service. However, with Zolve e-SIM, customers can download their mobile service today, and activate once they land. Alternatively, they can have a SIM card delivered to their door for free (India only).
Meanwhile in the United Kingdom, neobank Revolute launched eSIM as part of their premium ‘Ultra’ plan – providing reliable mobile connectivity for their globally connected customer base.
Revolut is a software unicorn that has taken a large share of the travel cards and money transfer market. Its’ customer base are digital nomads and corporate travellers who rely upon the Revolut app for day-to-day payments and banking.
The addition of eSIM is a clever way to upsell free or low-value subscribers to higher value plans. The Revolut app is free to use (with some limits) but a range of paid subscriptions are available, adding extra features and functionality.
The eSIM inclusion allows Revout users to quickly enable international calls and data while they travel. Revout is already focused on international payments, so adding international calling feels like a natural extension of their core job-to-be-done.
Given their UK base is largely pan-European travellers, we believe eSIM is the perfect feature delivered at the perfect time (while customers are planning for travel).
Revolut specifically position their eSIM offer as an add-on. The Revolute eSIM is separate to the users’ primary mobile service. It is used for a time while the customer is travelling, with a feature set and pricing that are targeted to this use case.
While Revolut are making inroads into their customers’ phones, they are not (yet) trying to become their main telecom. Instead, they have a adopted a very targeted approach, positioning their eSIM offer to increase the utility of their core ‘travel money’ solution.
Following the approach of Revolut is Brazil’s Nubank – which has also launched it’s own eSIM offer for global travellers. Nubank have tied this inclusion to their premium ‘Ultravioleta’ membership, which is exclusively available to high-net-worth customers.
We see Nubank’s approach as a modern twist on credit card marketing, with eSIM as a cornerstone perk. While the ‘Ultravioleta’ plan is a pitched as a membership, it includes a premium credit card, which is likely where the real money is made.
To incentivise sign-up, the card is bundled with a range of rewards and benefits with high perceived value. Once again, this mobile offering and inclusion is tightly fitted to the customer profile. Likely, wealthy Brazilians who travel regularly for work and leisure.
Ultravioleta includes an international currency account, enhanced fraud protection when booking hotels, and crucially - an eSIM with 10GB of roaming data across 130 countries.
In addition to offering a global SIM service, Nubank is chasing a slice of its domestic market too. The company was recently approved by the Brazilian regulator to become a MVNO, in collaboration with a local mobile network. We will watch this product with interest when it launches.
The above examples show how banks, especially digital banks, can become innovators and early movers in the booming eSIM market.
For banks, adding mobile services offers a range of commercial benefits from recurring revenue, to increased customer loyalty, product diversification, and differentiation.
The prime targets are digitally savvy customers who are comfortable buying a mobile service without going into a physical store or receiving a physical SIM. Chances are, these are the same people who subscribe digital services in other industries, such as digital banks.
While no Australian banks have (yet) announced plans to add a mobile product, we believe it is only a matter of time. If the high rates of bank app adoption are any indication, Australians are tech savvy and willing to move to a digital-first customer experience.
Australian banks and card issuers would do well to consider how eSIM might fit with their product offering. Contact us if you’d like to discuss this opportunity in more depth.
