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57% would pay extra monthly bank fee to receive additional services

Theo Osborn | 16:57 Wednesday 14th November 2018

Nearly half of Brits (45%) would pay an extra monthly bank fee if it included media services, such as Netflix and Amazon Prime, according to the latest research.

The survey conducted by CitizenMe with Zuora found that despite 24% of Brits having never switched banks, they would be willing to do so in return for extra services.

The report found that 57% would be willing to pay an extra monthly fee in order to receive additional services, with 40% choosing cash back, 37% interested in overdraft facilities and 22% opting for travel insurance.

John Phillips, managing director for EMEA at Zuora, said: “We’re seeing the potential for a significant shift in UK banking due to the rise of the subscription economy.

“Up until this point, consumers have been historically hesitant to switch banks, mainly due to the fact that there wasn't a noteworthy difference between one account and the other. 

“But with the evolution of available subscription services and increasing customer demand for them, banks are in a unique position to capture the interest and long-term business of consumers – even those who have [previously] been reluctant to make a change.”

The report also found that 72% of consumers did not currently pay a monthly fee to their bank, but of those who did, smartphone insurance (16%), travel insurance (15%) and free overdraft facilities (13%) were provided.

“Beginning with software over 20 years ago, then with publishing and entertainment, now transportation, retail and banking – consumers want to be given the flexibility to choose without the burden of ownership,” added John.

“In an era of pro-consumer regulations, such as the EU PSD2 directive and Open Banking, this is a huge opportunity for banks to evolve and move towards a new model in which they partner with their customers to provide real value and – as a result – realise new sources of revenue

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