Bango is poised for growth with anticipated banking subscription expansion.
- The firm recorded an 18.6% increase in half-year revenue, reaching $24.1m.
- There is a shift in banks moving from free accounts to subscription-based models.
- Bango’s partnerships pave the way for new subscription service collaborations.
- Market responses saw Bango’s share prices fluctuate following the announcement.
Bango, a company specialising in subscription bundling services, foresees significant growth in the number of subscription services offered by major UK banks. This comes on the heels of a notable 18.6% increase in Bango’s half-year revenue, amounting to $24.1 million. The majority of this gain is attributed to a 60% rise in subscription bundling revenue.
The company’s CEO, Paul Larbey, highlighted a trend in banks shifting towards monetising their current account holders through subscription services. “The banks are a little behind the telcos in terms of innovation but we see a general trend towards moving from free current accounts to paid services, and subscriptions will be a vital component in that transition, by for example including free Netflix subscriptions,” Larbey commented.
This strategic shift is evident as London-based fintech companies, including neobanks like Revolut, have already integrated such models by partnering with companies like Deliveroo, Financial Times, and Airbnb, offering various customer discounts. These efforts are being mirrored by traditional high street banks, seeking to diversify their service offerings.
Moreover, Bango’s strategy includes securing strategic partnerships, such as their recent collaboration with a bank in Brazil. They are actively engaged in discussions with several banks, aiming to extend similar collaborations globally.
In terms of financial performance, Bango’s pre-tax losses were reduced by $1.5 million, settling at $3.4 million during the reporting period. However, their net debt increased by $1.2 million to $5.1 million compared to the prior year. Following the announcement of these financial results, Bango’s share price exhibited volatility, initially rising by 8% to reach 119 pence before dipping to 111.66 pence.
Bango’s anticipated growth in banking subscriptions signals a strategic shift in the financial sector’s approach to value-added services.
