Fintechs and neobanks must offer enduring everyday value to justify subscription fees 

For neobanks that run all their services and operations digitally, the onus is on optimizing the value of monthly subscriptions. Customers weighing up a premium banking-as-a-service plan expect to see compelling benefits, both in terms of the banking basics and some complementary perks. As with other kinds of fintechs, this approach is used to acquire new customers as well as to retain the loyalty of existing ones.

Hence it’s not uncommon to see preferential savings rates and generous credit allowances packaged up alongside free insurance coverage and even discounted gym memberships and the like. Outside of their own service delivery, financial institutions tend to favor ancillaries that underscore safety, security and peace of mind – hence personal and travel insurance is particularly popular, though some of the other extras you come across (coffee subscriptions, pet grooming services, etc.) appear not to follow any particular rationale.

Fintechs rely on connectivity, just like their customers 

Fintech customers experience and interact with their subscriptions predominantly via mobile devices. The latest research shows up to three-quarters of under-35s prioritize mobile-first banking experiences, compared to less than one-quarter of over-55s. As these demographics shift even more in mobile’s favor over time, the mobile device experience – and the cellular connections that mobile apps need to underpin it – becomes increasingly critical.

Mobile data therefore becomes a logical addition to incremental subscription value, allowing neobanks and other fintechs to maintain customer relevance. This is especially the case whenever ‘upwardly mobile’ fintech customers choose to travel – seeking the peace of mind that they can data-roam like they’re at home with complete ease, either at cheap or discounted rates, or potentially without incurring any costs at all.

This approach also presents potential synergies between a fintech’s data strategy and the ability to gain enhanced insights that allow for greater customer personalization. Consumer research shows this is a crucial opportunity: based on a survey of 30,000 respondents as part of Bain & Co’s “Customer Behavior and Loyalty in Banking” report, more than 70% said they are interested in having their primary bank use their personal data if it means their banking experiences will be more personalized. 

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The trend for offering a mix of core finance products alongside non-finance partner products is set to continue in the fintech space, and we can expect to see eSIM-enabled mobile data playing a part in this. Again, this attracts customers in the first instance, but also contributes to loyalty and retention over the longer term.

Want to know more about eSIM Go’s work in the fintech space? Get in touch with an eSIM Go expert to explore the options and use cases in this rapidly evolving sector.