AMSTERDAM —In a model certain to cross the ocean to the U.S., ING has launched a subscription-based banking model for customers in the Netherlands as the banking giant seeks to diversify revenue sources and defend its market position against growing competition from digital-only banks, according to the company.
The new model replaces traditional pay-per-product banking with tiered monthly subscriptions that bundle banking, insurance and other services, including streaming offerings, into a single package.
ING said it plans to roll out the subscription model across all of its markets by mid-2027 after previously introducing it in Belgium, Romania and Poland. Additional markets slated for implementation include Spain, Germany and Italy, the company said.
‘Meaningful Boost to Income’
Sali Salieski, ING’s global head for private individuals, said the initiative is intended to provide a meaningful boost to fee income while responding to changing competitive pressures.
According to ING, the strategy is partly a response to increased competition from digital banking providers, including rapidly growing fintech firms such as Revolut.
The bank said subscription packages are expected to support continued growth in fee-based revenue, particularly from everyday banking services. ING has been working to increase net fee and commission income as higher interest-rate-driven earnings begin to moderate following the post-pandemic rate cycle.
“I think (the subscription model) will also give more breadth across all markets, because we’ve had some markets which are traditionally low fee or no fee,” Salieski said in a statement released by ING.
Double-Digit Growth
According to the bank, fee and commission income has posted steady double-digit growth over the last two years. During the first quarter, fee and commission income totaled €1.24 billion ($1.43 billion), representing 21% of ING’s total revenue.
The subscription model is expected to become a key component of the bank’s strategy to expand recurring revenue streams while offering customers broader service packages, ING said.
