What are Corporate Credit Cards? – Different Types of Cards
February 12, 2025
Businesses may all look the same when you look at the building in which they operate, the employees they hire and the product they sell. However, they can be very different when it comes to their legal structure. The legal structure determines the type of entity they are which in turn determines the rules that […]
Governments all over the world are fighting a war on cash. It is a known fact that the governments do not like cash. However, what is not clearly known is the reason behind it. What is it that makes governments all over the world unanimously abhor cash and pass legislation to control or even curb […]
Companies that file for bankruptcy also have a capital structure just like normal companies. This means that their capital structure is comprised of debt as well as equity. In the past few articles, we have been continuously talking about the interests of the debt holders i.e., how they will get paid in the event of […]
Entrepreneurs as well as people in the general market are often left perplexed about how investors decide to value any company. It is common for two companies with very similar asset bases and value propositions to receive a very different valuation from investor groups. This may seem confusing to common people and the entire valuation […]
Spain’s economy has been in an unprecedented decline since 2008. The average Spaniard found himself unemployed and had a huge mortgage bill to pay. An entire country has been bankrupted by the seemingly insatiable lust to acquire increasing quantities of real estate which drove the prices higher. This article will trace the beginning of this […]
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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