Fintech Super Apps – Everything You Need To Know
Fintech Super Apps There was a time when most of us, if not all, relied on banks to make our payments. Or we simply traded in cash.
All this changed when we ushered in digital transformation in finance.
These days, be it to book a taxicab or order a taco, we whip out our phones, pick the right app from the many, pay using our banking application, and we are good to go!
But, how many apps does a person need? If you were anything like us, you would say many.
Having a variety is a good thing. However, it can also get a wee bit confusing when you have too many apps to manage.
88% of the time people spend on their mobiles is spent on apps. Research also revealed that an average smartphone has about 80 apps installed in it, but close to 62% of these apps aren’t used every month.
With so many apps going unnoticed, what we need is an application that can satisfy our entire digital needs – something like a Super App.
What is a Super App?
The Super App concept has been taking over the world of technology like a storm. But with that said, the concept is still unclear and ambiguous. If you are in the West, you might have vaguely heard of this term, but you may be using one right now if you live in the East.
A Super App is a digital marketplace of services delivered using in-house technology and by integrating third-party applications. Imagine having to install just one app to get everything done – from booking cabs to buying clothes, chatting with your friends, to changing your investment plans.
Super Apps basically serve as a single window that offers a wide range of digital services and products. Like China’s Alipay and WeChat, the most popular Super Apps bundle together services like social media, eCommerce marketplace, essential services and online messaging, and more. Using this single application, users can gain access to all virtual services they might want.
Mainly due to the absolute versatility and convenience these apps provide, they have become a trending phenomenon in China – the place where it all started.
A Look at WeChat
WeChat was launched in China in 2011, mainly developed to serve as a messaging application. WeChat’s successful market penetration can be attributed to its unique payment service that allows users to pay for products and services in-store and online. When buying in-store, all you need to do is scan the barcode. When online, you can simply link up to a merchant using the app and complete the transaction as well. WeChat is not your usual mobile wallet – it is a marketplace in itself.
Are Super Apps a Threat for the Financial Sector?
While Super Apps seem like a new trend in the digital transformation of the finance sector, banks and the financial industry should exercise caution when dealing with them.
- Super Apps are Becoming Intermediaries
In addition to providing basic banking services, Super Apps also provides investment products and savings – products that the banks traditionally offer. When Super Apps take over these services, it undermines the bank’s control over these financial transactions. Banks are limited to regulating the transactions while not participating in customer communication.
Like the insurance sector, which gave up on its service to aggregators, banks may soon find themselves relegated to performing conventional banking activities if they don’t look out for a fintech app development company soon.
- Super Apps are Providing Personalized Service to Users
Since Super Apps already have access to a wide range of customer information, they can provide personalized, valuable services to customers. Super Apps are taking over the roles of a banker or an investment manager by using customers’ financial information available with them.
For instance, Super Apps are making use of transactional information or social media to access the financial strength of users. With this information, they are better able to risk-access loans and understand the credit score of customers.
- Super Apps are Building Brand Reputation
Super Apps are a marketplace of products and services with a robust payment mechanism. For now, most of the payments are routed through the traditional banking and card channels. However, many super big Super Apps link with their banking arms – WeChat has WePay and WeBank, and Alibaba has AliPay and Ant Financial. These Super Apps are now using their banking arms to reach out to new customers and establish a brand reputation among users.
Building a Fintech Super App
It might seem easy to brush off the Super App phenomenon as a passing trend, but it won’t be a prudent decision. The ground reality is that finance app development is laying inroads into every market. So, it is better to build Fintech Super Apps to cater to the market needs.
- Data Analytics
Any fintech app development company needs to invest in AI, big data analytics and other advanced technologies to change how banking services are provided.
It is now the time for the financial industry giants to partner and collaborate with other players to work off the strengths of one another. Banks need to project themselves as a platform and not only as a solutions provider.
- APIs and Open Data
The Super App success story relies largely on its ability to share vast amounts of data across channels and service areas to give businesses a better idea about their customers. Banks should invest in finance app development by looking at ways to use Open Data architecture and APIs that ensure seamless information flow.
So, as a fintech app development company, you should make sure that the Super App developed is able to share crucial information across verticals.
- A Vision for the Future
Before deciding to get into the finance app development process, banks have first to determine if they would want to be at the back-end of the Super App playing the role of a regulator. Or they would prefer to be at the forefront of the process. It will then become easier to start looking at investing and to reach out to a finance app development company.
With the digital transformation in the finance sector, banks can now deliver value through Super Apps if they have enough resources and respond to the changing customer demands. Fintech Super Apps can provide value by leveraging existing banking infrastructure and other APIs into a single app. Or cooperate with other industry giants to develop Super Apps specific to the market.