Over 1.2 million subscription payments have been stopped since summer 2021, as technology puts customers in further control of their spending, according to new data from Lloyds Bank*.
Popular TV, film and music streaming services made up almost half (47.1%) 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 the chop, with 17.6% of cancellations, since June last year.
Regular payments for weight management clubs and gym memberships made up 7.6% of contracts ditched.
With Brits spending more than ever on subscription services, the subscription management tool within the Lloyds Bank app means customers have an easy way to manage these regular outgoings.
Customers can view and stop subscriptions in a few simple clicks, with almost a fifth (17%) of customers using the service on a monthly basis.
These new findings follow an earlier spike in people taking out subscriptions during the pandemic, where new regular subscription payments increased by 70% between January 2020 and March 2021. The data suggests 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.”
“I forgot I was paying a TV subscription!”
Lloyds Bank customer Rebecca Woodman, a supply manager from Somerset, used the service through her mobile banking app as she had been looking at ways to tighten her household outgoings.
Miss Woodman, 39, said: “I am a busy mum to my three children Liam, Isobel and Isla, but I do try to keep an eye on what is going in and out of my bank account. When I looked at the subscriptions I had, I forgot I was paying £20 each month for an additional TV subscription as it is not something I’ve had time to sit and watch in a while. It was so easy to go through and cancel! With how expensive everything is becoming I am glad I have managed to cut back without having loads of hassle on something that isn’t essential. I couldn’t believe that’s nearly £240 a year that I was spending on something I had totally forgotten about. The money I have saved will go towards my children on things like new school uniform and the clubs they attend.”
Lloyds Bank partnered with Swedish fintech Minna Technologies and Visa in 2020 to be the first in the industry to launch the subscription management service. Minna provides the technology which allows customers to view and manage their subscriptions, helping them to manage their finances as the cost of living rises. The technology has won awards including Best Bank Tech 2021 and Top European FinTech 2021.
Joakim Sjöblom, CEO and Co-founder of Minna Technologies said: “It is great to work with Lloyds Bank, as part of our partnership with Visa, to provide customers with an innovative, digital solution to controlling their subscriptions. The technology accessed through the customers’ mobile banking app provides a seamless service, enabling customers to manage their subscriptions at the click of a button. 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.”