Telecom Banks in Oman the likelihood and posterior, usually such alliances are DNA'd for alternative revenues, since after 2015 the local telecom operators are facing tight growth options due to high penetration and negatively affected ARPU, which has been falling since then, resulting in low profits according to TRA 2017 report. Similarly the local retail banking segment is facing fair share of struggle too, to lead the channels market while coexisting with Fintech start-up's, further more the liquidity ratios of the domestic banks are not at par with the international banks, as international banks are enjoying a much bigger and diversified market.

With the local Banks facing liquidity crunch and losing the digital race against FinTech and telecom operators with negative ARPU, both industries are striving for revenues. A long-term partnership can be established among both industries to overcome the shortage by increasing the existing client base and subsequently increase profit per client. Such merger or acquisition would allow both entities share their know-how and decrease the risk of entering new ventures independently. At the moment, most of the alliances have focused on enhancing payments and increasing usability of payment-related technology. at the same time the scope of offered services is increasing, and is still far from a complete product portfolio of a typical retail bank.

The acquisition of a telecom operator or vis versa, should not only aim to produce distinct products but rather to aim for a comprehensive business model. Both entitles if merged in an alliance, resources, people and knowledge should be streamlined in an efficient way that could be managed more comprehensively creating substantial synergies. such business model will changes the way, in which financial and telecom services are delivered. Customers will be offered a wider range of indispensable services for everyday use by only one provider.

The question is how can local banks leverage from such alliance's, both industries can utilize their resources, that once enabled them to serve their own clients to provide services to clients acquired by such merger's, thus reducing the average costs of maintaining clients. Also the costs of acquiring new clients will be defiantly lower comparing to an acquisition of a norther bank, bearing in mind a telecom acquisition should yield in cost effective client base information.

On the other hand telecom companies can leverage from such alliances by extending their existing portfolio of products by financial services, which leads to additional profit and an increased average ARPU. Strategically such alliance's ensures additional bounding's to offered products, which results in reduced migrations to other providers causing a reduced average churn rate. The telecom sector is enriched with specific customer behavioural data, that allows to dig for more accurate target and risk profile of potential bank clients, that might be useful while offering telecommunication-related products. Telecom sector can leverage from such collaboration by using current distribution resources in form of a POS network for increasing its efficiency.

Such mergers are no good without customers , what advantages can such alliances give to customers:

1- Free virtual current accounts,
2- High interest rate on virtual savings accounts.
3- Cashback features for mobile payments or transfer from another bank.
4- Exclusivity of such offer to tele bank clients.

in conclusion such mergers or alliances can be tailor made for different scopes and aims, the is mature enough for such, strategic alliances. There are several indications from the global market to back my argument :

- The commitments of market leaders to introduce a comprehensive product portfolio.
- The possibility of seeing wider range of mass market products from new industries.
- New business model are emerging on revenue sharing or telecom attempts to acquire banking licences.
- FinTech currently is transform the retail services market.