What are Corporate Credit Cards? – Different Types of Cards
February 12, 2025
The use of incubators is fairly common in startup companies. Entrepreneurs across the world use the services offered by incubators. This is because many entrepreneurs feel that being a part of a group that has similar objectives increases their chances of success. The use of incubators is fairly common in high-tech industries. In this article, […]
We are now aware of how to use the basic single stage models for both free cash flow to the firm (FCFF) and free cash flow to equity (FCFE). It is now time to look into more advanced models which involve two or more stages for which cash flows will be predicted. Now, we need […]
Corporations all across the world make a wide variety of payments via checks. This includes statutory payments, payments to utility vendors as well as many other vendors who do not have access to electronically enabled payment systems. These checks are automatically issued using a digital signature. The process of creating and issuing these checks is […]
In the previous article, we have already studied about option pools. We now know the various advantages that they offer and why they are preferred by startup companies as a means to compensate their employees. However, some companies and investors are not happy with the concept of stock option pools. This is because they dilute […]
The past decade has seen a rapid increase in the number of start-ups. There are more companies which start up every year now as compared to a decade earlier! As a result, there are numerous new kinds of players which have come into existence in the start-up universe. One such type of company is called […]
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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