neo banking

Neo telcos are the new disruptors in Australia. Just like neo banks, neo telcos operate exclusively online and do not have any physical branches.

Australia has one of the most competitive and mature telecommunications markets in the world, and recent research reveals MVNOs (Mobile Virtual Network Operator), an operator that does not have its own network – have seen significant growth over the last 12 months.

In many ways, this progress is similar to the one banks have gone through.

Telcos in Australia can learn from the digital transformation success stories from other industries, such as digital banking and financial services. In Europe, digital-only banks such as N26, Monzo and Revolut are growing rapidly and taking market share from traditional banks.

Completely digital offerings with no branches, these neo banks provide a range of banking services through their smartphone apps. Customers are made to feel like a part of building the future of banking, with public roadmaps and extensive beta-testing and feedback loops.

While neo banks are still in their infancy in Australia, the success of ME Bank, 86 400, and Up show that these challengers are starting to make their mark.

Like neo banks, neo telcos are built to deliver a mobile-first experience. The term ‘neo’ refers to businesses that leverage technology to offer a customer-centric experience, predominantly targeted at a younger, digitally savvy audience. Neo telcos, by definition, move fast and innovate at a rapid pace.

Without the weight of costly brick-and-mortar operations, these digital players keep an ear to the ground and offer services tailored to what consumers actually want.

Speed, agility and lower operating costs are at the centre of their business models. Targeting young Australians – the digital natives – as they are pushing for innovation in the industry.

Also Read: Threat or opportunity? boosting digital banking in Asia

Now more than ever, the pace of technological change is putting pressure on traditional players to transform the way they structure their business to more effectively deliver what their customers really want.

The progression of digital transformation has raised customers’ expectations for services, where personalisation and transparency, such as visibility of their data usage, are critical factors.

Being the world’s first fully digital telco allows Circles.Life to focus on the customer’s wants and needs. Through our app, we are delivering a frictionless, more digitised experience. For example, as we saw the need for data increase during the pandemic, we improved the app to allow customers to upgrade their plans themselves without having to wait on hold or even log on to a website.

Just by clicking a few buttons on their mobile they could get more data. We believe that great pricing is what our customers want so with Circles.Life more data doesn’t mean a hefty price tag.

To roll out upgrades like this is a slow and cumbersome process for most of our competitors, but we did it in a few days. At the end of the day, our business model is built on customer satisfaction and our tech is designed to support that goal.

For telcos to appeal to digital natives in Australia, embracing and investing in modern, digital architecture is fundamental. The Circles.Life customer experience means an account can be activated in just a few minutes, and mobile plans are flexible and affordable with generous amounts of data.

We are following in the footsteps of successful disruptors. The ones who are defined by the agility of their operations and progression of their business model to truly offer innovative services to their customers.

The global telecommunications industry is changing rapidly, and by always putting our customers first, building features based on their feedback and not locking them into long and expensive contracts, we believe we are different in a good way.

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Image credit: mejikyc

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