Superapps are basically a one stop customer service digital solutions. The convenience they offer is unique: imagine managing your money, ordering food, shopping online, booking travel and even using government services through a single mobile app!
The superapp model has proven incredibly successful lately. According to consulting and research firm Gartner, these 15 popular apps will be downloaded more than 4.6 billion times worldwide by 2023. The number of monthly active users is 2.68 billion.
The traditional banking model is becoming obsolete
The report compiled by Gartner also reveals that, according to forecasts, more than 50 percent of the world’s population will be active users of multiple super apps by 2027. Reinforcing this trend is also supported by the fact that in November 2021, about 67 percent of consumers were in the United States Interested in integrating multiple digital experiences into one superior application. Elon Musk may also have such plans with twitter. However, the increased demand is not only coming from consumers, but also from companies, including financial technology companies and companies operating in the banking sector.
This phenomenon can fundamentally change the banking sector. Traditional banks often focus exclusively on financial services. However, super apps with integrated digital wallets and financial services have reversed this paradigm and attract customers with convenience and a wider range of services.
What is the success of superapps?
Premium applications are preferred in customer acquisitionThey provide a number of services that connect users to the platform. The more times someone uses the app for different services, the more likely they are to use its financial services, which leads to a higher customer retention rate.
Superapps collect comprehensive data about user habits and preferences through the various services they offer. This huge data set can be used for personalized marketing, risk assessment and development of new services to meet changing customer needs.
By offering financial services digitally, super applications can reduce physical infrastructure and human resource costs. Cheaper operations result in lower fees, which is particularly attractive to the unbanked or unbanked population. This may also explain why it is becoming increasingly popular in developing countries.
The answer is from traditional banks
In the face of these developments, traditional banks must realize that they need to transform. They are also beginning to embrace digital transformation, either by developing their own digital services or partnering with financial technology companies to expand their offering. Some banks are even considering creating super app-like platforms.
Banks can use their extensive financial services management experience, regulatory knowledge and customer trust to their advantage.
Partnerships with fintechs and technology companies can help banks take advantage of the superapp model without having to build everything from scratch.
According to experts at Gartner, IT leaders in the banking sector should make it a priority to create an environment that facilitates the creation of superior application experiences for third parties and developers. This can be achieved by having a comfortable development experience and convenient development tools – Such as APIs and SDKs – shown.
The competition is getting intense
The superapp phenomenon represents the fusion of technology and financial services, setting new standards in terms of customer convenience and variety of services. Superapps are not only a challenge, but also a serious opportunity for companies, including traditional banks.
By redefining and personalizing the user experience, super apps can save businesses time and money.
By embracing digital transformation, traditional banks can position themselves to thrive in the evolving financial environment and provide an enhanced and holistic customer experience that meets the needs of the 21st century.
The future of banking life may be a battle for dominance between super apps and digitized traditional banks. Only time will tell who will emerge victorious at the end of the race.
The author is a consultant to Peak.
This Sponsored Content is a file fintech.hu done with his help.
