The subscription model is becoming more common in virtually every sector, already generating $650Bn and driving 18% annualized growth according to UBS. Yet, the financial industry is lagging behind and is just starting to ride the "subscription growth wagon".
Of all the businesses in the financial services sector, corporate banks are in the best position to transition their business models to capitalize on the opportunities of the Subscription Economy.
For this paper, we studied some of the top-performing subscription-based businesses in the world to uncover the key lessons corporate banks can follow to succeed, like:
- Building long-term relationships with customers to create more predictable and sustainable revenues
- Imagining how Corporate Banks could concretely transform their offerings to embrace the subscription economy paradigm, with concrete examples from Guarantees and FX
- Shifting from selling products to offering services that help customers achieve their goals
- Using subscription-centric KPIs like ARR (annual recurring revenues) and churn
- Leveraging the new principles of pricing, packaging, and monetization