AIB may switch to sub­scrip­tion model in dig­i­tal over­haul

State-con­trolled bank look­ing ‘very closely’ at drop­ping charges regime

Sunday Independent (Ireland) - Business & Appointments - - FRONT PAGE - Michael Cog­ley

AIB is “closely” con­sid­er­ing in­tro­duc­ing a new sub­scrip­tion model for its on­line ser­vices in a bid to help fend off com­pe­ti­tion from fin­tech ri­vals.

The bank is de­vel­op­ing a range of im­prove­ments to its dig­i­tal of­fer­ing, in­clud­ing changes in per­son-to-per­son lend­ing that could al­low users to send money us­ing some­one’s phone num­ber.

AIB’S head of dig­i­tal chan­nels devel­op­ment, Sean Jevens, said the bank was look­ing at the elim­i­na­tion of fees in place of a monthly sub­scrip­tion model.

“There is a view that bank­ing should be free. Peo­ple have no prob­lem pay­ing for their cable TV, no prob­lem pay­ing for their util­ity bills be­cause they see the value of it,” he said.

“We’ve got a par­tic­u­lar model and cer­tainly we would be con­sid­er­ing a sub­scrip­tion-based model. We will cer­tainly con­sider it. Whether we roll it out or not is the key de­ci­sion point that will come in time as the guys close out on their pro­posed ap­proach.”

Jevens said the bank had “un­der-sold” some of the value it de­liv­ers and in­sisted that de­vel­op­ments in its mo­bile app, voice ID, and other dig­i­tal in­no­va­tions “don’t come for noth­ing”. He said that “if we were to go with a sub­scrip­tion-based model it would likely be some­thing like what the other banks have of­fered as well.

“Some of the ‘neo-banks’ are of­fer­ing where you get a cer­tain amount for X-amount a month. If you look at Revo­lut you can go pre­mium and pay €7.99 a month and they throw in travel in­sur­ance.

“Again, it’s ‘to-be-agreed’ spec­u­la­tion at this stage. It would likely be some­thing where there is a reg­u­lar charge and there might be cer­tain things that are ex­tra.”

Jevens said the bank was also look­ing “very closely” at its fee model where cus­tomers pay per trans­ac­tion on credit and debit cards. Jevens said AIB was open to drop­ping card fees en­tirely, putting it in line with some prom­i­nent fin­tech com­pa­nies.

It fol­lows a sig­nif­i­cant in­vest­ment in vo­cal bio­met­rics, by AIB which al­lows cus­tomers to ver­ify their iden­tity by us­ing their voice in­stead of the tra­di­tional steps of an­swer­ing se­cu­rity ques­tions.

Jevens said that by the end of March next year there will be more than a mil­lion cus­tomers log­ging on to the AIB mo­bile-bank­ing app on a daily ba­sis.

AIB also added Fit­bit Pay to its sta­ble of smart pay­ment ser­vices last week.

Newspapers in English

Newspapers from Ireland

© PressReader. All rights reserved.