When you walk into a Capitec branch or open the FNB app, you might now see a new kind of product on the shelf, a mobile SIM that is sold only to the bank’s own customers. The two banks are not fighting over the same piece of the market; they are running almost identical mobile virtual network operator (MVNO) models. An MVNO is a company that offers mobile services but does not own the radio network, it rents capacity from a traditional carrier, in this case Cell C.
Both Capitec Connect and FNB Connect sell the SIMs exclusively to their banking clients, finance the handsets, and even lend airtime. Their success is measured by “true active” users, customers who either pay for a service or generate traffic over a three-month period, rather than the number of SIMs that have been issued. According to TechCentral, FNB Connect reports just over one million true active users, while Capitec Connect logged 1.5 million for the three-month period ending 28 February 2026.
The similarity in strategy means the real competition is not between the two banks but between their host network and the traditional telcos, Vodacom, MTN and Telkom. When Capitec cuts data prices or makes on-net calls free, the pressure lands on those carriers, not on FNB. The banks’ MVNOs exist to make the banking relationship stickier, not to become a major source of connectivity revenue.
Why the banks care about mobile
Both CEOs framed the mobile offering as a loyalty tool. FNB Connect chief Sashin Sookroo told TechCentral that the goal is to be the SIM that gets used, not one that sits in a drawer. The bank hopes a customer will take the SIM, earn rewards, spend those rewards on more data or a new phone, and stay within the FNB ecosystem. Capitec Connect head Dalene Steyn echoed the same sentiment in a 2024 interview, saying the primary metric is active usage, not income.
Scale matters, however. Capitec serves roughly nine million customers, while FNB’s base is about 26 million. Even with a smaller base, Capitec’s active users are about half again as many as FNB’s, showing that a bank with a tighter, app-native audience can achieve higher penetration.
Products that blur the line between banking and telecom
Both banks have moved beyond simple SIM sales. FNB launched an airtime-advance product with Optasia that lets customers borrow airtime at the point of need. The credit risk holder was not disclosed. Capitec has been offering similar advances for a year, with the portfolio reaching R97.3 million in the year to February.
Device sales are also part of the mix. FNB’s handset business is growing at more than 18 % a year, with options ranging from refurbished phones to high-end models, all payable in eBucks or on 3- to 36-month terms. About 30 % of its digital sales now happen on eSIM, a technology that allows a SIM to be programmed without a physical card. Capitec began selling devices in October 2025 with zero-deposit finance and free monthly data, and it plans to roll out eSIM later this year.
What the future could hold
Both banks are eyeing home broadband, but neither has committed to a launch date. Sookroo declined to comment on fixed-wireless access, a segment MVNOs are watching as mobile data markets saturate. The bigger question is what happens when the closed-loop model, a bank-only SIM, reaches the point where every interested customer already has a device. Capitec’s model relies on a larger, lower-margin base, while FNB’s wealthier, app-native audience may sustain higher-margin services.
For small business owners and entrepreneurs, the immediate impact is limited. The MVNOs are not competing on price to win new customers; they are a value-add for existing banking clients. However, the presence of bank-run SIMs could influence how telcos price wholesale capacity, which may trickle down to business data plans.
In the longer run, the banks’ ability to bundle financial services with connectivity could create a new kind of customer lock-in. If a small business relies on a bank’s mobile offering for payments, data and communication, switching banks could become more costly than simply changing a telco contract.
For now, the two MVNOs are more alike than different, and the real competition remains with the traditional network operators. The banks’ next moves, whether into home broadband, fixed-wireless or deeper integration of financial rewards, will determine if the model can keep growing after the low-hang-over of early adopters.
Read more about the tech landscape in South Africa at Tech & Telco.
