Business banking startup Azlo moves into subscriptions

BBVA-backed digital bank Azlo launched a subscription-based service called Azlo Pro, which includes invoicing, and automated budgeting for payroll and taxes.

Why should we care?
Azlo, like other digital banks serving small businesses, experienced growth during the pandemic. With a Pro subscription for $10 a month, Azlo intends to diversify revenue sources beyond deposits and card interchange fees, though it’s not dropping its free account. The subscription plan is a bet that customers will want to take advantage of additional features -- a model that’s also followed by fintechs Majority, MoneyLion, N26, and others. Many fintechs are pushing Netflix-style ‘all in’ memberships, but it’s yet to be seen whether they will generate significant revenue gains over time. Azlo says it’s hoping business customers will use the account to streamline their accounting processes. “What Pro does is it helps automate a lot of those back-office tasks that you may not know about or may not have time to do,” CEO Cameron Peake told Banking Dive.