Diversifying Fintech Services with Embedded Connectivity

A recent YouGov survey found that one in ten would consider switching to a neobank in the next six months. Of those willing to switch, 64% indicated they would pay a premium fee if their bank offered additional services, such as eSIM and mobile data for international travel. 

Neobanks are on track to surpass UK legacy banks in Android app downloads by the start of 2025, according to a recent study by SplitMetrics. With over a billion global users, customers are turning away from brick-and-mortar banking and towards a complete digital experience. But can that experience be enhanced further, to offer even more digital services? 

Here, Hamish White, CEO of embedded connectivity provider Mobilise, explores why fintechs should consider diversifying their services with eSIM.

Streamlining banking and mobile services for global users

eSIM makes sense for digital banking services because the technology can help fintech companies to extend their service offerings by integrating connectivity directly within their mobile apps. 

“This capability enables users to purchase data packages and stay connected globally without leaving the app environment. Here, we can see benefits for both the customer and the service provider,” Hamish states. “While fintech unlocks another revenue stream, the same YouGov survey reveals that over a third of respondents feel it’s important to merge their banking and mobile services onto a single app — highlighting the desire for a streamlined user experience.”

Hamish is already seeing success in the field. Revolut, a leading UK-based neobank, has successfully implemented eSIM technology, offering its customers mobile data services in over 100 countries. This move eliminates the hassle and cost of traditional roaming, providing a seamless travel experience.

eSIM revolutionises travel

Unlike the conventional SIM card, which requires physical insertion and swapping, an eSIM is embedded directly into the device. This digital SIM connects users to mobile networks by downloading network credentials over the air, removing the need for a physical SIM card. The advantages of this technology become especially apparent for users who frequently travel internationally.

“Travellers typically face several challenges when trying to stay connected overseas,” Hamish continues. “Roaming with their existing provider can lead to exorbitant fees, and relying on public Wi-Fi networks often means sacrificing security and experiencing inconsistent connectivity. Purchasing a local SIM card in a foreign country can be a complicated and frustrating process, especially when dealing with language barriers and unfamiliar systems.”

The introduction of travel eSIMs addresses these pain points by offering a straightforward, digital alternative. Travellers can effortlessly download an eSIM profile onto their device, enabling instant access to local networks without the need to hunt for a SIM card vendor. 

“Furthermore, many modern devices support multiple eSIMs at the same time, allowing users to maintain both domestic and international numbers — a feature particularly valuable for frequent flyers and business travellers,” he adds.

eSIM technology offers seamless connectivity

For fintech companies, the integration of eSIM technology represents a strategic opportunity to enhance their service portfolio. Neobanks and fintechs are already central to the financial lives of many travellers, as it’s often more expensive to withdraw cash than simply pay via card and budgets can be easily monitored via the bank’s app. 

“By adding eSIM functionality to their apps, these companies can provide an all-in-one solution that not only manages finances but also ensures reliable connectivity worldwide,” Hamish continues. 

Mobilise simplifies the process of implementing eSIM technology through its comprehensive software development kit (SDK). This SDK allows fintech companies, regardless of their telecom expertise, to integrate eSIM capabilities into their apps with ease. The existing digital infrastructure within fintech platforms makes the deployment of eSIM services swift, usually taking just a few weeks.

“Consider a hypothetical scenario: a user travels from the United States to Europe. Instead of dealing with the complexities of roaming charges or finding a local SIM card, they can instantly switch to a European carrier by downloading an eSIM profile directly through their banking app. This not only offers significant savings but also ensures uninterrupted access to financial services. Fintech companies can market this feature as a premium service, attracting customers who value convenience, cost-efficiency and cutting-edge technology,” Hamish concludes. 

As fintech continues to push the boundaries of innovation, eSIM technology offers a forward-thinking solution that enhances customer experiences and sets companies apart from the competition. 

By embracing eSIM, fintechs can offer seamless connectivity as part of their core services, driving customer loyalty and solidifying their position as industry leaders.

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