Banks and financial institutions often have a complex fee structure. As clients, we frequently work through financial jargon to understand the multi-page fee booklets. This brings me to the parallel I wish to draw: the automobile industry and its increasingly common subscription fees.
Cars have become more of a maze of fees and hidden costs—quite like banks. A car is no longer a one-time purchase; it comes with ongoing subscription fees. My personal experience revealed the extent of this issue. After three years, I needed to repurchase certain services in my car.
Tik-Tok star?
Sadly, I missed the deadline and had to relearn how to parallel park. I felt compelled to renew the subscription to avoid appearing on a TikTok channel. However, even with features like the “driving assistant,” I failed to see any significant improvements that would justify ongoing subscription fees without major enhancements. It’s like dining at a restaurant, only to find out later that they bill separately for air conditioning and restroom visits.
This trend of monetizing features that used to be standard is alarming. Clients feel frustrated by these emerging extra fees in banking and the auto industry. Clients should not feel like companies constantly nickel-and-dime them with unnecessary subscription fees.
Take Tesla, for example. While I am not alluding to Tesla in this instance, I might be more tolerant of their subscription fees. The consistently visible upgrades, advanced technology, and superior performance, all at a reasonable cost, justify a subscription fee. However, not all companies provide such value for their subscription fees.
Banks and auto manufacturers must reconsider their approach to subscription fees. They need to provide clear, valuable benefits to justify these costs. Clients deserve transparency and value, not a constant stream of hidden fees.
My take? This trend of subscription fees in banking and the auto industry must be addressed. Clients should feel confident that their financial decisions include all necessary services without being surprised by additional charges.
Source: LinkedIn
