Neobanks are pushing beyond banking, and now they’re going mobile, quite literally. A growing number of digital banks are launching mobile virtual network operator (MVNO) services, essentially becoming telecom providers without owning the infrastructure. Nubank is the latest to enter the race, announcing its MVNO pilot in Brazil. The idea is to boost customer loyalty, cut churn, and deepen user engagement by bundling financial services with mobile data plans.
Nubank’s move mirrors what Revolut and N26 have been exploring in Europe: a convergence of connectivity and finance that redefines “super app” ambitions. The MVNO route can increase revenue per user, but also gives neobanks access to rich behavioral data, allowing for smarter underwriting, better fraud detection, and hyper-targeted offers. That’s a data game incumbents struggle to play, especially as legacy banks often lack real-time touchpoints with their users.
The commercial logic is clear. In emerging markets, where mobile connectivity is a gateway to financial inclusion, offering telco services can be a customer acquisition lever. Brazil, for instance, has over 250 million mobile lines, more than one per inhabitant, and prepaid plans dominate. For Nubank, offering low-cost data plans paired with cashback or loyalty perks could be a powerful wedge to onboard millions outside the formal banking system.
Still, profitability remains a question mark. MVNOs operate on razor-thin margins, and few have cracked the code without scale. Revolut’s partnership with 1GLOBAL and N26’s experiments haven’t made headlines for profitability but for experimentation. Some analysts warn this could distract neobanks from tightening their core business models, especially as funding dries up for fintechs globally.
Still, the play isn’t just about margin today, it’s about ownership of the digital wallet of tomorrow. As digital ID, banking, payments, and now connectivity start blending into one app, neobanks see a chance to become the default interface of daily life. If they succeed, telco banking could be the next phase of platform finance. If not, it may just be another expensive experiment in the quest to “super app” the West.
