Finding better mobile deals
According to research from Sky Mobile, one fifth of UK mobile phone users (19%) have never changed their mobile network provider and over a quarter more (28%) haven’t switched provider for more than five years. This 'switching inertia', coupled with the perceived hassle of changing contracts and networks, keeps many customers locked into pricey contracts.
Open banking-powered money management apps such as Snoop, Emma, and Little Birdie already offer consumers the opportunity to keep track of their finances, flag contract renewal dates, review, and compare pricing. In some cases, consumers can even switch providers within the app.
Consumers and SMEs are set to be the big winners as open banking helps both to manage their mobile service costs. By leveraging open banking frameworks, telecoms providers can offer more agile and flexible payment options that align with actual usage patterns. In short, customers will only ever pay for the services they actually need.
Streamlined pricing models
Hyper-personalised payment options could be extremely valuable in a sector where traditional pricing models often result in consumers paying for services they don’t fully utilise, especially those with fluctuating monthly needs.
The same is true for SMEs which could avoid overpayments during slower periods by scaling their mobile service expenses in line with their business activities. For example, many small seasonal retail businesses experience significant fluctuations in customer demand throughout the year. During peak seasons, these businesses hire extra staff who require mobile devices to manage inventory, process sales, and communicate with suppliers, increasing the retailer’s mobile service needs.
During off-peak periods, these same businesses scale down operations, meaning their additional mobile lines and data plans go unused. However, because traditional telecoms contracts are often based on fixed plans, they still need to pay for these unused services.
By leveraging the hyper-personalised capabilities enabled by smart data, such as those facilitated through open banking, retailers can scale their mobile plans up or down in line with current business activities, ensuring they only pay for what they need when they need it.
Case study
Vodafone partners with Moneyhub to simplify access to affordable tariffs
Social tariffs were introduced in the UK to help low-income households access affordable broadband and phone services during the COVID-19 pandemic, and regulator Ofcom has also promoted these tariffs to help address digital exclusion. The importance of these tariffs has grown as more providers began offering them, aligning with government efforts to make essential telecom services more affordable for vulnerable groups.
Vodafone’s ‘VOXI For Now’ social tariff was launched in 2020 to support individuals impacted by unemployment during the pandemic. Its early success prompted Vodafone to expand the tariff to people receiving certain government benefits, including Jobseeker’s Allowance and Universal Credit.
To manage increasing demand, Vodafone integrated an open banking solution and partnered with fintech firm Moneyhub.
Moneyhub’s technology allowed applicants to give one-off consent to verify their benefit status in real-time, without affecting their credit score. This meant eligible customers were able to access their affordable tariff more quickly.
The partnership also gives VOXI customers free access to Moneyhub’s money management app to help them budget, save, and manage their finances more effectively.
Since its launch in January 2024, customer feedback has been positive, with users reporting significant improvements in financial management, including an increase in savings within six months.
