What are Corporate Credit Cards? – Different Types of Cards
February 12, 2025
“Valuation” or the process of assigning a fixed numerical value to the present and potential of a business is considered by many experts to be the most important part of corporate finance and financial markets. The most coveted and highly paid jobs in the financial markets are in this domain. The reason for this is […]
In the previous few articles, we have already seen that the valuation of a sports franchise is heavily influenced by the value of its human assets i.e. the players. This is because sporting franchises do not generally own a lot of assets. Hence, player contracts are one of the biggest contributors to the overall balance […]
The retail industry is unique in many ways. There are several financial and operational concepts which are more relevant to the retail industry than to other industries. Shrinkage is one such concept which has more relevance in accounting for the retail industry. In this article, we will have a closer look at the concept of […]
For any startup financing to be successful, the startup company and the investors need to be on the same page about a lot of issues. This is because, in the absence of this understanding, valuation divergence can be a quagmire of ever-escalating tensions between the two parties. One major source of conflict between these two […]
Financial modeling has become an essential part of most real estate transactions today. This is because of the fact that real estate deals today are complex are undertaken not only by individuals but by corporations who specialize in such transactions. Take the case of Real Estate Investment Trusts (REITs), for example. These trusts are organizations […]
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.
Your email address will not be published. Required fields are marked *