New report highlights opportunities and challenges of Super Apps for banking sector
Global payment specialist BPC and strategy consultancy firm Fincog have launched a new report to give banking providers key insights on Super Apps and the critical factors that could make them a future threat to traditional banking providers.
Super Apps provides a concise overview of the international ecosystem as well as the relevant regulatory factors and their role in Super App traction.
Existing Super Apps have achieved widespread adoption by combining services into a single digital interface. While Super Apps originated in Asia, they have recently been on the rise in western countries - with 67% of consumers in the United States reporting an interest in them.
According to the report, Super Apps are distancing banks from their customers. Those that have entered the financial services space, such as WeChat and Alipay in China, are starting to offer customers a range of essential products.
A great superpower of Super Apps is to leverage their data richness to enhance services and processes. By gaining significantly more knowledge about their users compared to standard apps due to the extensive collection of customer data, they can use this data to refine their propositions and deliver a superior customer experience.
Super Apps are building trust and reputation in financial services, the report sags. While currently, most of these financial services, such as payments, are still flowing through traditional banking and card infrastructure, Super Apps are embedding them into their convenient and carefully designed user experience, allowing them to build trust and a reputation also in the financial services space.
The report says newcomers and smaller fintechs should know that building a fully-fledged financial Super App incorporating sophisticated functions, such as lending on top of a basic wallet proposition, involves significant risk.
However, established institutions such as banks and payment players could see Super Apps as an opportunity to improve customer engagement, while opening new growth and revenue streams. To stay relevant in the evolving market, established financial institutions could either partner with Super Apps, providing the back end for all embedded financial services or could develop their own to improve customer engagement, while opening new potential growth and revenue streams.
"We are thrilled to share the findings of this report which illustrate why there is growing global interest in Super Apps," says Oleg Patsiansky, Head of Digital Banking and Super Apps at BPC.
"Staying ahead of the game means predicting where tomorrow will take us, as well as recognising where things currently stand. Super Apps are fast becoming increasingly attractive to a broader set of players such as banks and payment players, with more consumers starting to look positively at them and becoming willing to embrace the idea of a single app for their digital needs."
Jeroen de Bel, Founder, Fincog, adds, This joint report highlights the importance of recognising Super Apps as a significant and growing component of the broader digital financial ecosystem.
"We hope our insights will help businesses better understand that while Super Apps are mainly designed for their consumer audience, the merchant side is just as relevant," he says.