Why bundling is back en vogue, FS's actively creating them, why streaming services could be vital to retaining banking customers, and the technology driving this trend
Thanks for the thorough analysis. And it's interesting to see how rebundling is now in full motion - this was a key example which caught my eye recently, with Disney Plus adding Hulu and Max (as an option for a higher tier so to speak):
Streaming was the anti-cable and now with this rebundling things are getting a bit closer to how they were just within a different platform. Perhaps it was always inevitable... Plus ça change, plus c'est la même chose!
Regarding Mozo. I really liked their first iteration of Plus, where it was possible to mix and match various benefits. But obviously this more pick and mix approach didn't quite cut the mustard as they didn't stick with it for too long. Eventually banks and many fintechs like to put customers in one of three buckets and keep it relatively simple. But perhaps someone else will try to give users more options to build the account benefits they want sometime?
Exactly Matt. The Disney bundling and parallel between fintech and streaming is really interesting.
With the Monzo tiered subscriptions it's always a tricky balance of provided increasingly valuable bundles that lure customers in the next tier up, offering interesting benefits but ensuring the packages are cost effective to put together. Like you said, they probably went too bespoke then pulled it back a little to make the economics work
This is a really interesting read. It's fascinating to look at the trends from unbundling to rebundling, and I like how the TV examples are relevant to Fintech. Think out loud: Does bundling help make sense of a bank's proposition as it becomes more product and services rich?
I think it probably does the opposite. It makes the core offering of a bank more (accounts, mortgages, loans, investments etc) ,more homogenous to a degree. What bundling does is bring some of those core products together and makes targeting specific demographics a lot clearer. Overall it gives a richer customer facing offering in a time where banking with a single institute is becoming less and less prominent
really inspiring piece, thanks Jas. perhaps in the future we gonna see really valuable personalized bundles with the help of AI lol
Thanks! As digital banking products get more complex, AI will start to creep in to make UIs easier to navigate and packages are more personalised
Thanks for the thorough analysis. And it's interesting to see how rebundling is now in full motion - this was a key example which caught my eye recently, with Disney Plus adding Hulu and Max (as an option for a higher tier so to speak):
https://press.disneyplus.com/disney-entertainment-and-warner-bros-discovery-announce-disney-plus-hulu-max-bundle
Streaming was the anti-cable and now with this rebundling things are getting a bit closer to how they were just within a different platform. Perhaps it was always inevitable... Plus ça change, plus c'est la même chose!
Regarding Mozo. I really liked their first iteration of Plus, where it was possible to mix and match various benefits. But obviously this more pick and mix approach didn't quite cut the mustard as they didn't stick with it for too long. Eventually banks and many fintechs like to put customers in one of three buckets and keep it relatively simple. But perhaps someone else will try to give users more options to build the account benefits they want sometime?
Exactly Matt. The Disney bundling and parallel between fintech and streaming is really interesting.
With the Monzo tiered subscriptions it's always a tricky balance of provided increasingly valuable bundles that lure customers in the next tier up, offering interesting benefits but ensuring the packages are cost effective to put together. Like you said, they probably went too bespoke then pulled it back a little to make the economics work
This is a really interesting read. It's fascinating to look at the trends from unbundling to rebundling, and I like how the TV examples are relevant to Fintech. Think out loud: Does bundling help make sense of a bank's proposition as it becomes more product and services rich?
I think it probably does the opposite. It makes the core offering of a bank more (accounts, mortgages, loans, investments etc) ,more homogenous to a degree. What bundling does is bring some of those core products together and makes targeting specific demographics a lot clearer. Overall it gives a richer customer facing offering in a time where banking with a single institute is becoming less and less prominent