ING bets on subscription model to lift fees amid growing digital-banking competition

By Mateusz Rabiega and Jakob Van Calster

June 10 (Reuters) - ING launched a caller subscription-based banking exemplary for clients successful the ‌Netherlands connected Wednesday, successful a determination aimed astatine diversifying income ‌streams and protecting its marketplace share.

The Dutch-based slope expects the model, which is to ​be rolled retired crossed its markets by mid-2027, to present a "meaningful" publication to its interest income, Global Head for Private Individuals Sali Salieski told Reuters.

Salieski said the strategy was partially driven by increasing contention from digital-only ‌neobanks. Rapidly expanding Revolut, ⁠for instance, is reportedly considering an archetypal nationalist offering that could worth it astatine up to $200 billion.

The exemplary ⁠would regenerate pay-per-product banking with tiered monthly subscriptions that bundle banking, security and different services specified arsenic streaming into a azygous package.

The exemplary has ​previously been ​rolled retired successful Belgium, Romania and ​Poland. Salieski said the remainder ‌of ING's markets, including Spain, Germany and Italy, would travel suit.

ING expects subscriptions to enactment continued maturation of fee-based revenue, peculiarly by lifting income linked to mundane banking services, Salieski said.

The banking radical has prioritised expanding its nett interest and committee income implicit the past years, ‌seeking to offset the easing net ​windfall from precocious involvement rates post-COVID.

"I deliberation (the ​subscription model) volition besides springiness ​more breadth crossed each markets, due to the fact that we've had immoderate ‌markets which are traditionally debased ​fee oregon nary fee," ​Salieski said.

ING has been signaling dependable double-digit maturation successful interest and committee income implicit the past 2 years, which successful the ​first 4th stood ‌at €1.24 cardinal ($1.43 billion) and accounted for 21% of its full ​revenue.

($1 = 0.8655 euros)

(Reporting by Mateusz Rabiega and Jakob Van Calster ​in Gdansk, editing by Milla Nissi-Prussak)