Bango, a Cambridge-based fintech firm, has recently announced a significant rise in revenue, highlighting an upward trend in the banking sector’s adoption of subscription services. The AIM-listed company reported an 18.6% increase in sales, reaching $24.1 million in the first half of the year, with subscription bundling services accounting for a 60% rise in revenues.

Paul Larbey, CEO of Bango, discussed the evolving landscape in banking services: “The banks are a little behind the telcos in terms of innovation but we see a general trend towards moving from offering free current accounts to paid services, and subscriptions will be a vital component in that transition, by for example including free Netflix subscriptions. We recently partnered with a bank in Brazil [and] we are in discussions with a number of banks about partnering with them.”

The surge in revenue also reflects the broader shift among high street banks and London fintechs towards more lucrative subscription models, including partnerships with firms like Deliveroo, the Financial Times, and Airbnb. This strategy seeks to monetize customer relationships more effectively, transitioning from low-margin business models.

Despite the revenue increase, Bango’s pre-tax losses narrowed by $1.5 million to $3.4 million, and net debt increased slightly by $1.2 million compared to the end of last year. The company’s shares saw significant fluctuation, rising 8% in the morning trading session before settling at 111.66p.

Bango is a technology company that provides services to manage payment and subscription models for businesses. Specifically, Bango focuses on subscription bundling services, which allow major telecommunications and other service providers to offer bundled packages that include subscriptions to various digital services, such as streaming platforms like Netflix, or apps and services related to entertainment, productivity, and more.

Image by Pete Linforth from Pixabay