As technology continuously reshapes consumer expectations, digital banks are not just participating in the innovation race – they are leading it by diversifying their offerings far beyond traditional banking services. This strategic expansion positions digital banks as prime candidates to dominate the super app category, integrating everything from financial services to mobile data plans and streaming subscriptions into one seamless platform.
Why Digital Banks are ideal for the super app evolution
- Broad service integration: Digital banks leverage their agile, digital-first infrastructures to integrate a wide array of services, including wider array of services beyond financial service. This not only enhances convenience for users but also solidifies the banks’ role as an essential service provider in their customers’ digital lives.
- Countering tech giants: By offering an expansive suite of services, digital banks position themselves as formidable competitors against tech giants like Google and Apple, who are also vying to capture more of the financial services market. Through their super apps, digital banks can retain control over customer interactions and data, ensuring they remain at the forefront of their customers’ financial ecosystems.
- Beyond traditional affiliate programs: Traditional affiliate programs and the use of gift cards or coupons often result in banks handing off customers to other service providers. In contrast, the Digital Vending Machine® enables direct connections with subscription brands, enhancing user engagement by keeping all interactions within the bank’s app. This approach not only maintains customer engagement but also ensures transactions continue to route through the bank’s systems, deepening customer loyalty and trust.
- Enhanced engagement and revenue opportunities: Digital banks can now with the Digital Vending Machine® incorporate hundreds of subscription services directly into their platforms. This capability allows them to launch creative marketing campaigns and super bundles tailored to diverse demographic groups, maximizing both engagement and revenue. The ability to rapidly test and scale offerings provides banks with flexibility and significant bargaining power, ensuring they can adapt to market demands and consumer preferences quickly.
Real-life examples of Digital Banks embracing mobile services
Revolut’s Ultra Plan: A prime example of how digital banks are expanding into mobile services is Revolut’s Ultra Plan, which offers customers 3GB of roaming data in over 100 countries. This service not only caters to the needs of international travellers but also integrates seamlessly with their financial services, providing a holistic banking experience that enhances customer loyalty.
Nubank and Claro partnership: Similarly, Nubank’s move to launch a Mobile Virtual Network Operator (MVNO) in collaboration with Claro illustrates the strategic integration of telecommunications into banking services. This venture not only broadens Nubank’s service offerings but also positions it strongly in a competitive market where digital convergence is key.
The strategic advantages of subscription partnerships
The integration of subscription services via a SaaS product like Digital Vending Machine® from Bango is more than just an added benefit – it’s a strategic enhancement that transforms digital banks into comprehensive lifestyle managers.
These partnerships allow banks to:
- Offer a broader array of services, increasing their utility and appeal.
- Gather comprehensive data for better customer insights and personalized service.
- Build a super app that becomes the trusted point for discovery and purchase.
- Support customers with their overall financial health management
Maximizing customer loyalty through customization
Digital banks that utilize subscription partnerships can personalize offerings based on individual customer data. This personalization extends from choosing which services to bundle in a subscription offer to creating bespoke discounts and promotions based on usage patterns. This level of customization not only improves customer satisfaction but also enhances retention rates by making each user feel uniquely valued.
Conclusion
Digital banks are setting new standards for what customers can expect from their banking providers. By adopting a super app strategy and integrating a wide range of services, these banks not only meet the current needs of their customers but also future-proof their business models against increasing competition from tech giants.
For more information on how Bango can help your bank harness these opportunities and rapidly deploy integrated services, please contact our sales team at sales@bango.com. Let us empower your journey towards becoming a central hub in your customers’ digital and financial lives.