In the past few years, financial apps that offer single-use services have been rapidly increasing. Now, there is a new type of application from Southeast Asia that has entered the Western market, and it’s gaining momentum while also capturing market share. Super app in finance have the potential to cause significant disruption to the digital financial services industry. However, this raises the question: should lenders be concerned? Are super apps a threat or an opportunity for digital lending businesses and the overall financial industry? Let’s find out.
A financial super application is a collection of customized tools and services tailored to meet the user’s individual needs, presented in a user-friendly and seamless manner. The core element of this application is a smooth and uninterrupted user experience, enabling easy and efficient access to all available features. These features include a joint wallet, reminders for bills, automated bill payments, subscription management, investment opportunities, savings accounts, and budgeting utilities.
Super apps refer to mobile applications that offer a wide range of digital services integrated into a single, all-encompassing ecosystem. These apps create a unified platform that enables users to access various services like social media, e-commerce, banking, entertainment, and travel, among others. Generally, super apps incorporate third-party marketplaces within the ecosystem, and they utilize big data to engage users while providing diverse experiences and services. Originating from Asia, super apps have now become popular worldwide, providing a seamless and convenient user experience by consolidating multiple services into one application.
Super-apps are integrated with other apps, giving a seamless experience across the device. They’re contextual – aware of things like your location and status. SuperApps are apps that once you start using them, you wonder how you ever previously lived without them.
– Mobile World Congress 2010, Blackberry CEO Mike Lazaridis.
Here is a step-by-step guide to the super app development process:
Before you start developing a super app, conduct thorough market research to identify user needs and business opportunities. Plan your business strategies and make sure that your super app development is inclusive and can cater to a diverse range of users.
Consider partnering with third-party online service providers to enhance the functionality and growth of your super app. Collaborate with other market aspirants and allow your partners to grow with your business to create a long-term profitable business relationship.
Determine the core features and functionalities that will make your super app thrive in the marketplace. Start with integrating functions with wider use cases and higher open rates, and offer prime services to make your super app development decent.
According to Accenture research, the essential super app feature groups include:
Payments and financial services | Retail services | Other functions |
Mobile payments | Event ticket bookings (e.g., movies, theater, sporting events) | Cloud storage |
Cashless payments | Restaurant and grocery ordering | Job search |
Insurance | Transportation ticketing (e.g., bus, train, flight) | News and media content |
QR code payments and rewards | E-pharmacies | Entertainment (e.g., music, videos) |
Credit and loans | Hotel bookings | Real estate and rentals |
Investment platforms | Other e-commerce | Calling and messaging |
Prioritize easy navigation and conduct market and user behavioral research to know what kind of UI helps the best to attract and retain more app users. Consider color scheme, typography, placement of important app services for easy navigation, eye-soothing effects and transitions, and more.
Choose the best technology stack to meet your native and cross-platform development requirements, considering code space consumption, code loading time complexity, development complexity, resource availability, and budget.
Front-end | ReactJS, VueJS, HTML, CSS |
Back-end | Node.js, Python, Goland, Laravel |
Mobile Platform | Swift, Kotlin, Java for Native, Flutter, React Native |
Database | MySQL, PostgreSQL, MongoDB, Redis |
Cloud Services | AWS, Google Cloud, Microsoft Azure |
Server | NGINX, Apache |
Payments | Paypal, Braintree, Stripe, EWallets |
Push Notifications | Push, Twilio, Firebase Cloud Messaging |
Find Location | Google Places API, Google Maps, CoreLocation Framework |
Analytics | BigData, Hadoop, Spark, Apache Flink |
Test the build in all situations and make it bug-free and crash-free for the initial release. Conduct functional, usability, compatibility, performance and load, security, installation, localization, and manual testing.
Refactor the code and ensure the resiliency of your super app architecture before deploying it in the public app registries or hosting platforms like Google Play Store and Apple App Store.
Keep your users happy by releasing new features, bug fixes, and security patches, and more frequently to ensure resilient super app performance and a higher user base retention ratio.
The emergence of the super app has transformed the financial services industry, providing consumers with unprecedented access to financial management tools and services. By placing power back in the hands of the consumer, the super app has revolutionized the traditional banking process, making it more flexible and responsive to user needs.
Contrary to popular belief, open banking is also now an essential ally that can benefit both banks and businesses. In this section, we will explore why finance super apps are beneficial for both consumers and financial institutions.
Super apps for finance are beneficial not only to consumers but also to financial institutions, who can benefit from the data insights and customer engagement opportunities provided by the app.
Super-apps are changing the landscape of financial services, offering a more seamless and engaging experience for customers. Here are some ways by which super apps are affecting traditional banks:
Finance super-apps utilize open banking technology that helps these apps to extract data from multiple sources. This enables the creation of user-centric products and services that are designed with the end user in mind.
By utilizing open banking technology, these apps can provide a seamless and personalized experience while also complying with regulatory requirements and maintaining data privacy and security. Open Banking technology provides several benefits to super-apps:
These super apps can utilize the expansion of open banking into open finance and open data to connect with more partners, launch new products quickly, and expand their customer base.
The future for super financial apps is bright as they continue to grow in popularity and functionality. As more people turn to digital banking and payments, super apps will become even more essential for managing finances on the go. Here are some potential developments we can expect to see in the future:
Finance super applications have enormous potential to offer convenience and value to users. However, they are facing significant structural obstacles, such as strict financial services regulations, legacy systems of traditional financial institutions and antitrust laws that limit their operation in many countries.
Finance super apps handle sensitive financial information, making them attractive targets for cybercriminals. Ensuring the security of the application and the protection of user data requires significant investments in technology and cybersecurity measures.
Finance super apps typically offer many services for free or at a low cost, which can make it challenging to generate revenue. Finding a sustainable business model that can support ongoing investments in technology and development can be challenging.
The primary concern with these banking apps is that they may result in monopolies and a concentration of economic activity in the hands of a few players, which has proven detrimental to the financial services industry in the past.
As a consequence, established players must find ways to adapt, which many of them are currently exploring. One such solution is Banking-as-a-Service, in which traditional banks continue to manage the back-end banking operations while new-age apps handle the front-end interface through APIs.
Consumers in US, Germany, and Australia trust their banks as the most reliable super app publishers, while UK users trust PayPal the most. Government is not a trusted provider, and 11-14% entrust Big Tech.
Early adopters of super apps are estimated to reach 98 million people with an annual spending of $3.25 trillion. The study was conducted in Australia, Germany, UK, and the US in January 2022.
Consumers trust a super app publisher mainly based on their overall reputation (25%) and data security and fraud prevention (50%). The survey was conducted in January 2022 in Australia, Germany, UK, and the US.
50% of consumers surveyed in January 2022 would be concerned about data security while using a super app. Access problems and providing too much personal data concern 40% and 38% of respondents, respectively.
Convenience benefits (66%), security benefits (61%), and coordination benefits (54%) are the most valued aspects of super apps. The survey was conducted in Australia, Germany, UK, and the US in January 2022.
70% of convenience-seekers desire to find and apply discount rewards in super apps, while 50% of financial wellness-seekers value the same. 6 in 10 convenience-seekers desire to suggest different merchants and set automatic nudges.
55% of UK and 50% of German consumers expressed interest in using super apps, while around 30% of US consumers showed either great interest or no interest. Australian respondents showed the least interest.
Minimizing the risk of losing sensitive information and coordinating different areas of one’s life in one place are the main benefits of super apps. The survey was conducted in Australia, Germany, UK, and the US in January 2022.
Ability to find and apply discounts and rewards, control which areas of life are integrated, and suggest payment method choices are the most desirable features in super apps. The study was conducted in January 2022 in Australia, Germany, UK, and the US.
Approximately 67% of US consumers showed interest in consolidating various digital experiences into one comprehensive super app. Among them, 20.38% were labeled as “information seekers,” who sought an app that unifies online shopping, travel, entertainment, and banking services. In addition, 18% of respondents were dubbed “financial wellness seekers,” showing interest in apps that integrate banking and payment services.
Source: Statista
Fierce is a new finance app that aims to provide a range of financial services all in one place.
When considering the development of a finance super app, you may have concerns about its future relevance and popularity. However, with the growing number of mobile users and the increasing demand for all-in-one solutions, super apps will continue to be in high demand.
At Idea Usher, we have successfully helped our clients create their ideal app integrated with advanced technologies that offer a wide range of on-demand services and entertainment options. Our expertise in mobile app development is also showcased in our portfolio, which boasts an impressive user interface and functionalities.
If you have ideas for your industry-leading super app, contact our IT experts at Idea Usher for a demonstration and comprehensive consultation on your project.
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A. The distinction between super apps and stand-alone apps is quite evident. Stand-alone apps are created to perform specific functions and are typically limited to designated platforms, such as VoIP apps (Zoom), entertainment apps, banking and finance apps, and others. In contrast, a super app is a digital ecosystem that combines multiple micro-programs and services. Paytm, MyJio, Gojek, and Tata Neu are some of the most popular examples of super apps.
A. Super apps are both space and time-efficient, making it convenient for users to access all the essential apps and services at their fingertips. Thus, having a super app that houses all the necessary features and functionalities can undoubtedly increase your user base and lead to a considerable return on investment.
A. The success factors of a super app include a superior mobile experience (providing necessary online services under one roof), a homogeneous marketplace, unbanked populations, and several others.
A. The development time for a super app may vary depending on its type. The development of an organization/employee-facing super app may depend mainly on the functionalities and security. Meanwhile, for a customer-facing super app, the user interface and experience are the primary considerations that can affect its development time.
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Rebecca is a multi-disciplinary professional, proficient in the fields of engineering, literature, and art, through which she articulates her thoughts and ideas. Her intellectual curiosity is captivated by the realms of psychology, technology, and mythology, as she strives to unveil the boundless potential for knowledge acquisition. Her unwavering dedication lies in facilitating readers' access to her extensive repertoire of information, ensuring the utmost ease and simplicity in their quest for enlightenment.
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