Loading

Other

January 21, 2021 — 4 Min READ

Why the banking industry needs to offer more than just enticing perks and subscription services

Subscriptions in the banking industry

“While using a subscription model may be beneficial to financial institutions, it is also their responsibility to protect their customers and ensure they are educating them on their finances. All banks, including neobanks should build and maintain consumer trust and have their interests aligned and provide complete peace of mind knowing that their funds are fully protected.”

Josipa Majic, Revuto CEO

With consumers dealing with so much uncertainty, one aspect they do want complete control over is their finances. Research has found that more than one in four people in the UK are not happy about their financial situation following the COVID-19 pandemic, banks should be supporting their customers and guiding them on their financial journey, whether it’s by including more transparent chargeback features and policies, as well as helping consumers to proactively cut costs for any unwanted products or services.

Our CEO Josipa Majic also said that subscriptions and recurring expenses are increasing 100 percent year-on-year and that banks have the opportunity to become a crucial source of transparency and education in helping their customers to better understand hidden fees, such as free trials that are almost impossible to cancel and other forms of expenses that consumers don’t fully understand yet, and that banks should be doing more to advise consumers on how to better manage their money.

Josipa Majic, Revuto CEO

Maintaining trust and transparency

“A large part of where both traditional and challenger banks are going wrong is that they get wrapped up in strategizing and lose sight of what matters, and it all boils down to having a true understanding of their customer base. Understanding this means it helps them to better understand their customers’ needs and allows them to implement the fundamental building blocks to create authentic, meaningful relationships.”

Josipa Majic, Revuto CEO

Part of building strong relationships with consumers is personalisation and providing a tailored service. Research has found that 90 percent of consumers appreciate a personalised service, and, with this in mind, banks should be monitoring their customers’ spending habits and providing advice on best practice, particularly when it comes to subscriptions. Nearly a fifth of people never review their subscriptions and as a result, half of them are paying for a service that they either don’t use or get value for money. Majic also said that consumers will most certainly benefit from a personalised service from their bank that provides complete transparency and allows them to review their subscriptions and easily manage them – whether it is simply approving, snoozing or blocking and canceling a payment.

 “Banks and many other financial institutions must remember that they have the responsibility to care for their customers, this must be put first before profiting off bad decision making. Banks, in particular, stand between the individual and the economy, they should advise their customers on how to look after their money and help them become financially secure through genuine guidance. Once banks decide to prioritise their customers, they will then be able to offer alternative services that will benefit their customers, such as perks e.g. travel insurance, free international ATM withdrawals, and discounts at selected retail stores and restaurants.

While there’s no denying that we are going to see the financial services industry move to a subscription model, it’s vital that banks adapt their strategies to focus on building consumer trust, improving their customers’ financial health and offering more personalised value propositions. But what should be at the heart of their strategy is providing a financial wellness service that allows their customers to easily manage and control their payments, as well as complete transparency over their finances and regular communication from advisors who can provide smart financial advice.”

Josipa Majic, Revuto CEO

Coming soon!

The Revuto app will be available in March which will allow you to:

  • Block or Snooze or Approve each subscription or recurring payment in seconds
  • Share/split costs with friends in a safe and secure way
  • Swap unused subscriptions with friends
  • All payment information and passwords are tokenized

Sign up: https://revuto.com/ and stay tuned! :)