Subscription-based Neobanks are on the rise. Numerous banks that have previously used the pay-once, use-forever model are now switching over to the subscription business model. Even direct-to-consumer (D2C) digital financial services companies are successfully attracting consumers with this pricing strategy. It is clear that the introduction of subscription models in the banking industry will be a central step in the realization of modern business models. In the consumer sector, analysts even assume that 75% of products will be available on a subscription model as early as 2023. While many customers have gained experience with subscription services in other areas of life such as entertainment, shopping or mobility, it poses major challenges for established financial companies and often also for a fintech. This is due to the fact that subscription services are not only a matter of new pricing but also require a serious rethinking of almost all business processes. At the same time, the subscription model provides a structure to follow for the necessary business transformation.
The classic banking app solutions allow businesses and customers a variety of features. Unfortunately, most of the proposals are quite narrow and suffer from a lack of flexibility and transparency. The systems most often base their income on applying fees to customers' actions. The tools provided by such solutions usually do not allow to control and track users efficiently and do not help to gather the necessary data to provide a better experience to end-users.
For the successful implementation of a subscription-based banking platform it’s important to keep the following in mind:
The subscription price model makes income planning more controllable. This key advantage must be not overloaded by complicated, hard-to-find cancellation options.
Neobanks should ensure that new subscription-based solutions actually create genuine customer benefits and do not overload customers with additional services because they want their needs to be taken into account entirely.
The data protection regulations are strict, but they offer enough room for the development of personalized services. In a complex financial ecosystem where different providers and products come together, the processing of personal data can be a delicate balance. Despite this, customers should always be 100% sure that data privacy is guaranteed.
Velmie's subscription-based banking platform allows a smooth transformation and creation of the banking business model:
Numerous integrations with payment providers, ERP solutions, financial accounting software, business intelligence, and marketing software make subscription management a simple process from the very beginning. The REST API puts no limits on how you can develop your own ecosystem.
Manage recurring billing: whether it’s consumption billing, upgrades, credit notes or cancellations. Velmie’s solution automates these recurring processes in a customer-friendly way and maps them correctly in financial accounting.
Customer self-service: change of address, order management and invoice archiving. Velmie’s platform includes configurable templates tailored to a bank's corporate identity.
Velmie’s platform includes all the necessary features in one place. It allows the utilization of different tools to manage Neobank’s system and enhance customer experience, creating, managing and offering new solutions based on customers' needs.
The convenient admin platform allows to monitor users actions within the system and track their transactions.
Predictable control over revenue
Acquisition of payments on a regular basis is what makes revenue more predictable.
Management and customization of subscription plans, adding new ones, enhancing. existing ones
Gather statistics to enhance an offers
Collecting and analyzing the information to know customers in the best way possible.