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New report by Paymentology and Fincog highlights opportunities for telcos in financial services sector

June 21, 2023

New report by Paymentology and Fincog highlights opportunities for telcos in financial services sector

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Payments leader announces report exploring opportunity for telcos to provide innovative financial services across all regions 

21 June, London: Paymentology, the leading global issuer-processor, and strategy consultancy firm Fincog, today announce the launch of a new report highlighting significant opportunities for telcos to enter the financial services space by adopting new banking business models. Considering telco’s existing technical infrastructure and industry trend of diversifying product offerings, the report analyses the specific advantages for telcos of offering innovative financial services. 


Unlocking Financial Services for Telcos” provides an overview of a unique opportunity for telcos to diversify their revenue-generating services and enter a new market. It analyses the viability of telcos offering innovative financial products and services to a traditionally underserved customer base, explores the wide range of entry strategies available, and stresses the importance of a digital-first approach. 


Here are the key findings: 

  1. By leveraging their existing data and customer base and adopting new banking capabilities, telcos can generate new revenue streams and become facilitators for financial inclusion. 
  2. Telcos' marketing and customer relationship expertise and their established user base mitigates costly customer acquisition, one of the main barriers to entering the financial services market. 
  3. As demonstrated by successful projects from the likes of Safaricom, TrueMoney or Tigo Money, the diversification of revenue streams through innovative financial offerings will continue to be a key driver of growth and competitiveness for telcos in the years ahead. 
  4. There remains a significant gap between internet and mobile penetration rates especially in developing regions, resulting in a unique opportunity for telcos to address financial inclusion. 


Abe Smith, Co-CEO of Paymentology, said “We’re delighted to launch our report exploring opportunities for business expansion in the dynamic telco industry. We have extensive experience working with telcos and have identified a compelling engagement model that has enabled us to delve deeper into how we can drive financially inclusive offerings to meet the pressing need for digital-first banking products and services across the globe.”  


Bulent Dal, Global Director of Strategic Accounts at Paymentology, added “Extending financial services to the traditionally underserved is a key goal for Paymentology, as we strive to boost financial inclusion throughout the world. Our report demonstrates telcos can expand the services they offer to their customers without significant barriers to entry, improving access to crucial digital banking products and changing lives as a result. “ 


The report draws on extensive analysis of regional telecommunication markets and financial services across the globe, aided by input from leaders of recent telco financial services projects. It also explores the options available to telcos as they build their payments infrastructure, from partnering with an industry leader to developing a platform in-house. 

“Our findings outline the opportunity for telcos to differentiate their revenue generating products by offering financial services,” said Jeroen de Bel, founder and partner at Fincog. “Recent advances in technical infrastructure have enabled new and exciting banking business models for telcos in all regions to leverage. This report benefits those interested in expanding into the financial services industry and making the most of the opportunities presented by the global digital economy. 


Download the report "Unlocking Financial Services for Telcos"