The subscription economy is booming. According to Dyme, people in the Netherlands have 14 subscriptions each on average. That’s everything from energy, mobile and insurance bills to streaming services. So it’s easy to see why many recurring costs roll over or carry on longer than they should – meaning many people are unwittingly wasting money they could have saved. That’s where Dyme is stepping in.
After creating and selling a bike sharing platform that let people find the nearest rental in a matter of minutes, the founders decided to create something new that would have a much larger impact.
‘Our CTO discovered he’d been paying a gym membership for four months that he’d forgotten to cancel,’ said Dyme founder Joran Iedema. ‘We both had technical backgrounds and thought we could easily create an algorithm to monitor subscriptions, but unfortunately the data wasn’t available at that time. Then we heard about PSD2 and could see how financial services would open up – Dyme was born.’ By the end of 2019 Dyme had completed a funding round and acquired a PSD2 licence from the Dutch Central Bank, which is when things really started to take off.
Dyme in action
Today, Dyme is a leading subscription service in the Netherlands that’s already saved its 200,000 users €3 million collectively – and is now set to rocket across Europe. So how does it work?
Users go into the app and seamlessly connect their bank account, so Dyme can analyse their transactions and show them what subscriptions and recurring costs they have. Dyme then automatically shows users if they could save money by letting Dyme switch their service to a better value deal, or lets users cancel their contract in one click, doing all the hard work in the background. ‘We want to give people a clear overview of their regular outgoings, and take away the tedious tasks that they don’t have the time or energy to do,’ said Joran.
Connecting the banks
‘In the Netherlands we had built the API connections to the banks ourselves’, he added, ‘but we knew that wasn’t scalable across Europe – we would need a whole company just focusing on that – which is where Tink comes in’. Dyme is now partnering with Tink for account aggregation technology, initially in the UK and Germany, with other European countries to follow. This way, Dyme can launch new markets at speed, letting them concentrate on the core services of their app, rather than building out bank connections to access data.
‘Tink allows us to scale much more quickly than we would be able to on our own,’ said Joran. To integrate banks in the UK and Germany would take us half a year alone, so Tink enables us to go to market much faster, and with a good product right away. Because our algorithm is powered by the categorisation of transactions, and Tink already supports that in those markets, it's much easier for us to launch the whole product, at a better quality than if we’d tried to implement the bank connections ourselves.’
Better money management
When Dyme started out, there were three main problems the founders wanted to help solve – the fact that people don't always know what they're paying for, that people want to cancel a contract but forget or find it too much effort, and people staying in the same contract with the same provider because it's more convenient than switching. ‘People can save €800 per year just by reviewing their energy, mobile and insurance suppliers, said Joran. ‘We want to make it possible for many more people to tap into those potential savings – without having to lift a finger.’
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