Nearly half of young adults aged 18 to 34 say they would switch banks for better subscription bundle offers, a new study from digital payments company Bango PLC (LSE: BGO, OTCQX: BGOPF) reveals. The research, based on a survey of more than 5,000 U.S. subscription users, highlights how the demand for subscription bundling is becoming a powerful factor in customer loyalty and engagement for financial institutions.
Bango’s Loyalty pays report shows that 29% of all subscribers would consider leaving their current bank or financial provider for improved subscription bundling options. Among 18–34-year-olds, that figure rises significantly to 48%, signaling a clear appetite for financial providers to move beyond traditional banking products and serve as a central hub for managing monthly subscriptions. Notably, 17% of younger respondents already have at least one subscription service bundled through their bank.
What exactly is subscription bundling in this context? It refers to multiple subscription services, such as streaming media, bundled together on a single bill managed by the bank. This model not only offers cost savings but also reduces administrative hassle by consolidating payments. The study found that 68% of subscribers pay for at least one subscription indirectly, through third parties like banks, neobanks, or digital wallets. For many, easier billing is more appealing than just lower prices, 35% pointed to convenience as a key driver, while 31% cited better pricing.
The data also reveals a sense of subscription overload among consumers. With an average of 5.4 subscriptions per person, 63% want a single platform or hub to manage all their subscriptions from one place. This simplicity creates loyalty, with 57% saying they would be more faithful to providers offering such a subscription hub, and 62% more likely to recommend them.
This trend matters greatly for banks facing a competitive landscape where customers can switch providers with ease. Traditional incentives like generic cashback or points programs are no longer enough to hold customers. With nearly half of subscribers regarding their subscriptions as essential, and about 70% claiming to have a “forever subscription” they would never cancel, banks see an opportunity to leverage this behavior. By embedding subscription bundles into their offerings, they can deepen regular engagement, differentiate paid tiers, and create additional fee income.
Paul Larbey, CEO of Bango, explained that acquiring customers is only the first hurdle for banks. With competitors just a click away, the challenge is maintaining ongoing engagement. He pointed out that subscription bundling introduces a monthly interaction point, encouraging customers to regularly check bank apps or websites for new offers. These digitally engaged clients are more likely to purchase additional financial products such as loans or financial health tools, boosting all areas of the business. Larbey emphasized that bundling is not simply an acquisition or retention tactic but a catalyst for broader engagement that can activate dormant accounts.
Bango’s technology platform, the Digital Vending Machine®, powers this subscription bundling ecosystem by enabling banks and other providers to combine and manage multiple subscriptions efficiently and at scale. The platform has earned the trust of major global content providers, including Amazon, Google, and Microsoft.
In financial results released earlier in the year, Bango reported 21% growth in annual recurring revenue and a 15% increase in subscription bundling revenues, underscoring real commercial momentum. The company has also seen its active subscription numbers double year-on-year, demonstrating growing consumer adoption.
As subscription fatigue and administrative complexity rise for consumers, banks that can successfully bundle and simplify subscriptions stand to gain a competitive advantage by creating a more indispensable relationship with their customers. For the younger demographic in particular, bundles aren’t just a perk, they are becoming a must-have factor influencing banking choices.
Bango’s latest research offers a snapshot of evolving consumer expectations and a blueprint for banks to build stickier, more engaged customer bases through smart subscription bundling strategies.
