What are Corporate Credit Cards? – Different Types of Cards
February 12, 2025
Banking activity is generally considered to be risky. Banks earn money by borrowing money from people and then lending them to other people at a higher rate of interest. However, commercial banking activity is considered to be even riskier. This is generally because of the huge dollar value of the transactions in commercial banking. Hence, […]
Fundamental analysis is considered to be the holy grail of stock investors. Warren Buffet claims to have amassed his fortune thanks to it. People who consider him to be a role model swear by the effectiveness of this method. The media also cannot stop singing praises. However, ask any Forex trader whether they follow fundamental […]
It is common for sporting franchises to create an internal system so that young players with high potential can be identified and groomed at an early stage. Such players form the backbone of any successful football franchise since they are cost-effective. It is common for such players to help create a disproportionately high value in […]
Financial models were widely used by corporations, even in 2008. However, the severity of the 2008 crash forced financial institutions to rethink their approach towards modeling. Many assumptions which are inbuilt in a financial model were being changed to imbibe the lessons learned in the great recession. One such lesson learned was about risk management. […]
In the previous few articles, we have already studied the concept of automation as it related to retail warehouses. However, it is important to realize that warehouses are not the only place in the retail sector where automation is possible. Over the past few years, the usage of technology in the retail space has rapidly […]
In the previous articles, we have learned about what subscription-based banking is. We also know the various advantages that this revenue model brings for banks as well as for corporate customers. However, there are several commercial banking experts who believe that the subscription banking model also has its own fair share of problems. Hence, in order to have a well-rounded opinion on the topic, it is important to also be aware of the various shortcomings of subscription-based banking.
In this article, we will have a closer look at some of the disadvantages which are commonly associated with subscription-based banking.
Here too, corporate customers are forced to subscribe to several of the bank’s services at one go when they decide to upgrade. As a result, many corporate customers are hesitant to upgrade from the freemium model. The conversion rates from the free to the premium subscription remain quite low.
Therefore, it often becomes difficult to convince customers to settle for an off-the-shelf product bundle instead of a customized bouquet of services. Many commercial banks have introduced varying degrees of personalization in the subscription-based model. However, it goes against the basic principle of having a few pre-determined subscriptions which the user gets to choose from.
Commercial banks have to be on a constant course of self-improvement if they adopt this revenue model. However, having the need to continuously innovate may not necessarily be a bad thing.
The bottom line is that there are definitely many advantages to implementing a subscription-based revenue model. However, commercial banks also face several disadvantages in doing the same. Hence, the transition from traditional banking to subscription-based commercial banking needs to be well thought out after weighing all the pros and cons.
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