Bango said it expected to see a surge in the range of subscription services offered by Britain’s biggest banks, as the AIM-listed business posted a jump in half-year revenues.
The Cambridge-based firm, which offers subscription bundling services to major telecoms firms, said it saw many banks turning towards offering subscription packages themselves as they look to further monetise their relationship with account holders, currently a low-margin business.
CEO Paul Larbey told UKTN: “The banks are a little behind the telcos in terms of innovation but we see a general trend towards moving from offering free current accounts to paid services, and subscriptions will be a vital component in that transition, by for example including free Netflix subscriptions.
“We recently partnered with a bank in Brazil [and] we are in discussions with a number of banks about partnering with them.”
London fintechs have already ramped up their subscription bundling offers, with neobanks such as Revolut partnering with firms like Deliveroo, the Financial Times and Airbnb to offer discounts to customers, a strategy which many high street banks are looking to emulate.
Bango’s sales rose 18.6% to $24.1m for the first six months of the year, led by a 60% rise in revenues from its subscription bundling services.
Pre-tax losses fell by $1.5m to $3.4m over the period, while net debt rose by $1.2m compared to the end of last year, to $5.1m.
Bango shares rose 8% to 119p on Monday morning before dipping to 111.66p.