If you are a service provider of telco, you might want to consider merging with FinTech companies by creating a mobile wallet for telcos. Making a telco mobile wallet is not an effortless task. You would need to research the current trends in telecom business. If you want to create a mobile wallet for your Telcos, it is possible.
This blog will explain why the merger between FinTech and Telcos can be a win-win scenario. We will also give you an overview of the FinTech and Telco partnership on the global market.
Why should FinTechs and Telecoms combine?
Telcos have many things in common with FinTech firms. Both are intermediaries within their respective sectors, namely. Finance and communication. FinTechs, as well as Telcos, are quite similar.
Telcos identify their clients with their phone numbers, while FinTech companies use account numbers. FinTechs and Telcos are able to leverage the power of their customer base in order to increase revenues and expand their business.
The digital payments segment is also growing rapidly around the world. Statista estimates that digital payments will increase at 12% per year (approx.). By 2025, digital payments will grow at a rate of 12% (approx.). This is the best opportunity for Telcos to grow their businesses by integrating digital payments. Telcos and Fintechs can also expect many other benefits as a result of this merger, including the change in their business models.
Benefits of telcos
Global Market Insights estimates that the mobile wallet market in global will exceed $350 billion (approx.). By 2026. Telcos may want to consider partnering with FinTech providers in order to meet this high demand. Fintech companies can earn additional revenues by creating a mobile wallet for the Telecom Industry.
1. Boosts Financial Inclusion
Telcos are able to build creditworthiness if they provide financial banking services for the unbanked. The growth of smartphones could also support the expansion of financial services. Now, telecom companies can no longer limit themselves to just providing data plans or telecom services but also contribute to financial inclusion by using innovative technologies and data science.
2. FinTech Tools – Latest FinTech tools
In partnering with FinTech companies, telcos can not only gain extra support from the other business sectors but they will also have access to the robust financial technologies used by FinTech service providers. Telcos are able to provide their customers with a hassle-free and safe experience by partnering with FinTech companies.
3. Telcos can use their customers’ data
The company’s costs of maintaining clients will be reduced because customers who are bound to more products won’t change service providers as often. The company’s cost of maintaining customers will decrease. Data sharing is important.
Telco companies can use existing customers to gather valuable information about their spending habits and other financial products. Telecom companies can improve their customer service by using these data.
FinTech firms can also track metrics that are based on customer feedback, which helps them improve their service.
4. Easy to provide value to customers
It is the best part of the merger that telcos will be able to reduce the financial burden on their customers. They can do this by offering them free current accounts, lower interest rates, cashback and other offers. Telcos can offer value to customers with these features.
You should always put the customer’s convenience first, whether you run a business or provide services. Telcos could offer greater convenience to their customers along with the above benefits by allowing them the ability to track and manage payments from anywhere.
Telecom and FinTech Collaboration in International Markets
The collaboration between FinTech and Telcos has been limited until now to the development of mobile technologies and payment services. The scope of their offering has increased, as can be seen by the following examples.
Samsung, a telecom service provider, has launched a mobile payment system called Samsung Pay to offer their customers payment services. Orange, a French telecom company has also launched Orange Money to offer payment services to their customers. T-Mobile, a German company, has started offering payment services to its customers in addition to providing telecommunications services.
Here are a few examples where telecom companies and payment service providers have merged. There are many other telecom companies that are generating great revenue by merging with FinTech service providers.
Final Words
Answer to the question above is that banks and telcos should join forces as integrating financial services can help telcos explore new business sectors apart from providing recharge and telecom services.
FinTech companies can reach out to a larger customer base through a merger with Telcos. Make a telco solution for your company today and partner with a FinTech success story.