Up bank to introduce a subscription fee – but customers are not impressed

A cult Australian digital-only bank says “the days of monthly banking fees are over” after offering customers the chance to pay for their services via subscription.

Up, which calls itself Australia’s first mobile bank, is offering “interested customers” the chance to try out subscription packages, which “automate finances” and give access to merchandise and “special events”.

The subscription product, called Up High, has been met with skepticism on social media, but Up claims it is the future of the banking model.

“Rather than imposing a monthly fee on all our customers, we want to give them the choice,” an Up spokesperson told the Daily Mail Australia on Wednesday.

“They can continue with a great free offering, which we continue to invest in, or opt for a monthly subscription to access that next level of functionality and control.”

The bank did not disclose how much the monthly subscription will cost at the request of Daily Mail Australia.

Those who sign up will receive an “exclusive merchandise package.”

So far, Up said it was still in the “early access” phase, testing ideas to “shape the offering.”

“Up High will eventually be available for a low monthly subscription,” the bank said, saying it would be rolled out as an option to all of its 700,000 customers.

The bank claims the move has been enthusiastically received.

“We are overwhelmed by the early interest,” the Up spokesman said.

“Introducing an optional paid tier into an offering that was previously free for all Upsiders is something we know should be done thoughtfully and respectfully. That said, we couldn’t have had a more positive answer so far.’

However, no such positivity was reflected on social media after an Australian revealed that Up had sent them a request to join the subscription service.

They said the plan offered additional accounts with a separate payment ID, debit cards, and cost sharing with other banks.

“They also had a survey at the end asking if I would be interested in this,” they said.

Up claims its customers have been very excited about the trial version of a subscription option

“I personally said no because I don’t want another subscription in my life.”

While they thought the features were good, he didn’t think it was “worth paying extra for it, especially since Up isn’t already offering the best interest rate right now.”

Another said, “If they start charging fees, I’ll go back to a physical bank where people work.”

Many more were largely unconvinced by the idea.

“Sounds like a fee for keeping an account under a different name,” one commented.

“Well, a separate payment ID already exists and is not a new feature,” another commented.

‘Up has its place in the market, but for a subscription, no. I suspect they are trying to create a typical American atmosphere instead of targeting the local market.’

Another said the bank was looking for new sources of income.

“They will do this primarily through home loans, but are in principle quickly looking for new ways to maximize income. This subscription offering is just one of them.

“They’ve boxed themselves in a bit because the existing app already has quite a lot of features, so most of the things they plan to offer just won’t add much value.

“I hope they can just innovate in other areas, instead of locking fun or existing features behind a paywall.”

One added: ‘Up is nearing the end of their proposed feature tree (you can see it in their ‘tree of up’) and are now under pressure to monetize their user base.

On its website, Up describes itself as “an all-digital, completely reimagined banking experience. It lives on your phone and has acquired cult status.’

It was founded in 2018 as a partnership between Bendigo Bank and fintech firm Ferocia.

Ferocia founders Dom Pym and Grant Thomas, a former head coach of AFL side St Kilda, sold their share of Up to Bendigo and Adelaide Bank in 2021 for a reported $116 million.

Former St Kilda AFL coach Grant Thomas is a co-founder of Up bank, which he left in 2021 as part of a $116 million buyout