?? Market Opportunity for 2025: Subscription Business Model
Vacuumlabs
Product development services with a focus on fintech - encompassing strategy, design, engineering, and data science.
Did you know that over the past decade, the subscription economy has grown 4.6 times faster than the S&P 500??
It’s time for your #FintechRoundup. Let’s jump in!
Streaming services, fitness apps, car lending, or aircraft maintenance subscriptions, this model is used in nearly every industry. And let’s be honest, we’re all signed up for at least one.?
Is the subscription model a valuable opportunity for your business?
??Useful data first:
?? Subscription-Based Banking
Today’s decision-makers are Millennials and Gen Z, these groups are used to subscriptions for everything from music to meal delivery.
They want the same simplicity when it comes to bank charges. And that’s where subscription-based banking steps in—a model that offers clarity and transparency by replacing multiple per-use fees with a single, predictable monthly charge.?
Financial institutions, like Revolut, offer subscription with premium benefits like free currency exchange, travel insurance, cashback, airport lounge access, or cryptocurrency trading.
An example of a wealth management service is Betterment, which offers a plan that provides automated investing, access to financial advisors and tailored financial advice.?
Companies such as Experian CreditWorks provide advanced credit monitoring, identity theft protection, and FICO score tracking for subscribers.
These were just a few examples, but there is more to offer. And here’s where it gets interesting.
?? Would you consider a car subscription instead of buying or leasing?
In our #MondayPulseCheck series on LinkedIn, we asked if you’d prefer a car subscription over buying or leasing a car. 32% of you said “Yes, definitely” and 34% answered, “Maybe, it depends on the offer”.?
This is where banks, car manufacturers, leasing and rental companies can step in to offer vehicle subscriptions or add car leasing as part of their package. It’s an opportunity to capture this growing market and bring in new customers looking for flexible solutions.
Our team prepared an insightful whitepaper so you can get started.
In this quick guide you’ll learn:
?Who is the car subscription model for
?The key differences between car subscription and operational leasing
?How to build your own car subscription service
?And much more…
?? Fintech Highlights?
?? Klarna payment is now a part of Apple Pay.
Klarna is available to users checking out with online Apple Pay and in apps with iPhones and iPads. Users in the U.S. and UK can choose Klarna’s flexible payment options, including pay later in three or four installments with no interest, or over longer periods with APRs starting at 0%.
?? Wise gets direct access to Japan’s payment network.
Wise has become the first foreign financial company to gain direct access to Japan’s bank?
payment clearing network. Access to the "Zengin" system will allow Wise to bypass intermediary banks that process and settle funds in Japan, lowering fees and processing times.
?? Shein launched its first branded credit card.
Shein is launching a credit card through a partnership with Mexican fintech Stori. This move aims to help both companies grow in Mexico and boost credit access while attracting online shoppers to Shein’s affordable products.
?? AI Patents at BofA Increased by 94% Since 2022.
Today, Bank of America has nearly 1,100 AI and ML patents and pending applications in its portfolio, with more than half having already been issued. The company spends more than $12 billion annually on technology, of which approximately $4 billion will be invested in new technology initiatives in 2024.
A ??digital bank for the Africans in the UK
We are happy to announce that Vacuumlabs helped Afin Bank create a digital bank designed for the African diaspora in the UK.
"Working with Vacuumlabs we have accelerated Afin Bank’s software development lifecycle, which enables rapid iteration and continuous deployment with a robust, scalable infrastructure. This means we will be responsive to our customers’ changing needs,” said Monica Velasquez, Chief Technology Officer, Afin Bank.
?? Read more about our partnership here.
?? Klarna Became Europe’s top fintech founder factory
Klarna has become Europe’s top fintech founder factory, which moves Revolut to second place.?
The total number of ex-Klarna employees turned founders nearly doubled from last year’s 32. (For comparison, Klarna has around 3,800 employees, while Revolut has more than 10K.)
When we look at Europe’s most productive fintech hub for startup spinouts, London is at the forefront, with 234 startups founded by ex-employees of the 24 fintech unicorns based in the UK capital. Second is Stockholm, with 96 spin-outs from 4 unicorns, and Paris comes third with 70 spin-outs from 10 fintech unicorns.
?? Meet us There:
?? DABF2024 (DIGITáLNí AKTIVA PRO BANKOVNICTVí A FINANCE): The event focuses on connecting traditional finance with digital assets—a theme that’s more relevant than ever. Our CEO, Tomas Masek, will discuss this intersection on Panel 02.
Alongside Roman Krska, Marian Hornak, Peter Liska, and Marcel Klimo, we’ll host a Crypto-Fintech (Trends You Haven’t Heard Before) workshop and discussion, where we’ll explore crypto-backed loans, business accounts in cryptocurrencies, and much more.?
Whether you want to talk about specific trends, ask questions, or have a one-on-one consultation, our experts will be there to guide you. (November 5, Prague)
?? DEVCON - SOUTHERN ASIA: Devcon’s mission is to make Ethereum accessible to everyone by introducing decentralized protocols, tools, and culture directly to people around the world. Our consultants Vladyslav Koryeshkov and Tomas Gally will be there. Let them know if you are coming! (November 12-15, Bangkok)?
?? FINTECH CONNECT: A leading conference and trade show that includes 180+ speakers across four key streams—Digital Innovation & AI, Payments, Web3, and RegTech, focusing on the latest trends. Get in touch with digital banking and fintech expert Nigel Sirett, who will also attend. (December 4-5, London)
See you inside!
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