By John Reynolds on Friday 8 April 2022
Lloyds Bank partnered with Swedish fintech Minna Technologies and Visa in 2020 to launch its subscription management service, which allows Lloyds Bank customers to view, manage or amend their subscription services through the app.
A Swedish fintech is powering technology which had led to customers of Lloyds Bank axing over 1m subscription payments since the summer of last year.
Lloyds Bank partnered with Swedish fintech Minna Technologies and Visa in 2020 to launch its subscription management service.
The fintech's technology allows Lloyds Bank customers to view, manage or amend their subscription services through the app.
Some fintechs are introducing subscription-management features as a way of differentiating themselves from their competitors.
Minna Technologies, founded in 2016, claims to have saved millions on behalf of its users.
The fintech, which is authorised by the Swedish Financial Supervisory Authority (FSA), operates as both a Payment Initiation Service Provider (PISP) and Account Information Service Provider (AISP).
The data, compiled by Lloyds Bank, found that 1.2 million subscription payments have been stopped since summer 2021.
Popular TV, film and music streaming services made up almost half (47.1 per cent) of regular payments cancelled, with households taking further stock of their discretionary spending, as the cost of living climbs.
Marketplace subscriptions – where people buy or sell goods online - also got axed, with 17.6 per cent of cancellations, since June last year.
Regular payments for weight management clubs and gym memberships made up 7.6 per cent of contracts ditched.
These latest findings follow an earlier spike in people taking out subscriptions during the pandemic, where new regular subscription payments increased by 70 per cent between January 2020 and March 2021.
The data appears to suggest people are now doing a ‘subscription audit’ following the lifting of pandemic restrictions, and a rise in day to day costs.
The insight also shows that Monday is the busiest day for subscription management, with those aged between 30 and 39 the most likely to be using the mobile app to manage payments.
Philip Robinson, director, payments, Lloyds Bank, said: “People are looking to take control and budget household spend. The subscription management service within our mobile app makes it easy for customers to see what they are making regular payments on, with cancellation just a few clicks away.
"Our customers have stopped over a million subscription payments to date, with streaming services by far the most popular stop.”
Joakim Sjöblom, CEO and co-founder of Minna Technologies said: “By going to where customers are already managing their finances, we help an ecosystem of banks, merchants and consumers by creating a supportive infrastructure for the future of the subscription economy.”