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Fintech Friday: Subaio

Publish date: 19 June 2020
Author: Subaio

Thomas Laursen, CEO and Co-Founder of Subaio, spoke with Efma’s Boris Plantier about his company’s white label solution that enables customers, via their bank, to get rid of their unwanted subscriptions.

What led to the creation of Subaio?

Subaio was founded at a hackathon in 2016. Prior to the event I had found an odd payment on my family’s monthly bank statement. I didn't recognize it and thought “What is this?” After some research I found that it was a payment for a US online newspaper I had only used once and then forgot all about. I thought I only bought access to one article, but suddenly I was paying for a monthly subscription. This was the beginning of Subaio. And this is why we want to give users back control of their subscriptions.

Could you present Subaio's offer?

Subaio is a white label subscription management service for banks. This means that we deliver our service to the bank, and they then present it to their customers in their online banking environment. Here the customer basically gets three things: An overview of all their recurring payments, the ability to cancel unwanted subscriptions with just a click from their online bank, and a notification every time the recurring payment changes.

Studies from YouGov have shown that 60% have a subscription they rarely use or have forgotten, while 42% find it difficult or impossible to cancel a subscription according to creditcards.com. And the issue is not going away soon. According to McKinsey the subscription economy has grown more than 100% each year for the last five years, so it's only going to get worse. Users need help in this space, and they want to do it from their bank interface, which is the service that we provide.

From the bank's perspective, they gain increased retention from these users, while there are also a lot of unique cross-selling functionalities in the feature. For instance, you can recommend a better loan, a better insurance policy, or better services to your own customers when you can see that they are getting these financial products from the bank's competitor. We give banks these types of insights.

What's coming next for Subaio?

Good question. We've launched with three different banks over the last month alone. So now we're live with more than six banks across the Nordics. Soon we will also go live with a bank outside of the Nordics as everything is ready to be launched. Subaio's next step is thus to expand to all of the European countries. We've proven that our setup is scalable. So now we can very quickly integrate with a partner and launch into a new market. In the banking sector that normally works a bit slow, the speed that we can provide for our partners is one of our secret sauces. That is what is going to drive our innovation as well as we can see more and more use cases being built upon our services. The current state is just the beginning. There's much more to come.

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