The simple application process can be completed in-app in a matter of minutes, but perhaps it’s a little too easy...Customers are quick to create new accounts, but the majority don’t choose to switch over their main banking activities, such as income and savings. As a result, digital banks have created a number of new chargeable services to counter this and turn a profit from their services.
Premium accounts are one big trend we’ve seen develop. Revolut charges customers £16.99 a month to upgrade to their ‘metal’ account, which offers a range of added services including personal insurance and even commision free stock trading. The other is a reduction in standard service fees. Many challengers, such as Tandem, have stripped international spending charges from their cards.
Although the challenge is specific to the digital banks, the shift in services will create an overall change in consumer expectations. As spending abroad without charges and easy-to-use service integrations become the norm, banks who don’t keep pace risk alienating customers - a key example of how tech innovation can change an industry from the bottom-up.