A major Dutch financial institution has introduced a subscription-based banking service in the Netherlands as part of its strategy to compete with emerging digital banks and diversify revenue sources.
ING rolled out the new service model on Wednesday, with plans to implement it across all its operating markets by the middle of 2027. Global Head for Private Individuals Sali Salieski told Reuters the bank anticipates this approach will generate a “meaningful” boost to fee-based income.
According to Salieski, the initiative responds in part to increasing pressure from digital-only banking competitors. He pointed to rapidly growing Revolut, which is reportedly exploring a public stock offering that could reach a valuation of $200 billion.
The subscription approach replaces traditional per-service banking fees with monthly payment tiers that combine banking, insurance, and additional services like streaming platforms into unified packages.
ING previously tested this model in Belgium, Romania and Poland before bringing it to the Netherlands. Salieski indicated that other markets where the bank operates, including Spain, Germany and Italy, will adopt the system next.
The bank views subscriptions as a way to sustain fee revenue growth, especially from routine banking operations, Salieski explained.
Over recent years, the banking group has focused on expanding net fee and commission earnings to balance out declining benefits from the post-pandemic period of elevated interest rates.
“I think (the subscription model) will also give more breadth across all markets, because we’ve had some markets which are traditionally low fee or no fee,” Salieski said.
The bank has maintained consistent double-digit increases in fee and commission revenue over the last two years. In the first quarter, this income reached €1.24 billion ($1.43 billion), representing 21% of total company revenue.
