Nearly half (44%) of UK consumers would consider switching to a bank with a subscription model in return for personalised service bundles.
Over half (52%) would be enticed to switch if banks if their subscription included an entertainment bundle. In addition, 33% would be tempted to switch for smartphone insurance and 31% would consider it for utility services.
This is big news for banks’ switching rates considering that 35% of all UK consumers have never switched their bank. However, tailored offers could change this and 60% of UK customers would allow analysis of their purchasing data to get this.
Nearly six in ten respondents wants to bundle their subscription payments and regular outgoings, and were willing to share transaction details to do so. Furthermore, 26% would be willing to pay between £5 and £10 for their bank account if it included these services.
This is according to a UK-wide study from CitizenMe and Zuora. Results also showed that 70% of consumers already subscribed to entertainment services, followed by insurance (52%) and grocery services (29%).
“Just like Netflix created new ways to consume television, the time is now for the financial services industry to shift to a subscription-based model. As younger fintech companies continue to disrupt the financial services industry banks need to re-establish their roles as trusted financial advisers. It’s clear the tides are turning and the survey results are evidence that banks will have to do more to earn loyalty now,” said Zuora Managing Director for EMEA, John Phillips.
“The interest from respondents in additional services shows the opportunity for these banks to invest in subscription services to secure recurring revenue stream, which serve not only to retain existing customers but also draw in those willing to switch. In return for loyalty, customers expect more value added services that are delivered in a personalised way, and the research shows they’re willing to pay for it,” added Phillips.