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Revolutionizing mobile banking: the power of SuperApps
As SuperApps continue to gain prominence, it is clear that the benefits for users are significant. But what does the market landscape look like in 2024, and how can financial institutions capitalize on the opportunities presented by this trend?
Originally developed in Asia, SuperApps are now also enjoying great popularity in the MEA region. SuperApps amalgamate various applications and services into a unified platform, streamlining the necessity to download and oversee multiple apps. A report by Gartner predicts that over 50% of the world's population will use multiple super apps by 2027.
A survey by Statista in Australia, Germany, the UK, and the US found that 66% of users favor super apps for convenience, 61% for security benefits, and 54% for better coordination benefits between services.
Mobile SuperApps: A game changer for consumers
Below are some standout examples of SuperApps that have already made a significant impact and garnered a large user base in their respective regions.
One of the largest communication apps on the market, WeChat boasts over one billion active users. The app allows users to send messages, order food, book rides and make doctor’s appointments, to name just a few functions. Launched in 2011 as a simple messaging app for smartphones, WeChat has become an effective replacement for top apps such as Uber, Venmo and Craigslist. The expansion of its services has allowed WeChat to establish itself as an indispensable tool in many people's daily lives.
Careem
Careem, developed as a taxi-sharing service, has significantly expanded its offering and now provides services in several categories. Today's services include car hire, taxi rides, bike sharing, food delivery, retail, payments, and top-ups. According to SimilarWeb, the majority of traffic on Careem.com over 25% comes from Saudi Arabia, followed by the UAE and Egypt. This positions Careem as the leading super app in the ride, order food and grocery segment.
Paytm
Paytm is one of the world's leading SuperApps, originally built with a financial services background. As one of the best payment apps, Paytm offers its users a wide range of financial technology features, including scan and pay, loans, pay later, cinema tickets, air tickets, and much more. Paytm is equipped with almost all the features one might need in daily life, making it one of the top banking super apps. Moreover, over 95% of Paytm's traffic comes directly from India, the main super app market.
There are few European providers so far, but individual providers such as Klarna, which has transformed itself from a payment method to a shopping app with a strong presence among customers, is just one of many prominent examples.
Maximizing convenience and personalized banking experiences
The adoption of SuperApps is already revolutionizing the landscape of customer engagement and business operations by enhancing customer experiences and increasing customer satisfaction.
SuperApps redefines the way users interact with services, creating a unified and immersive experience that fosters stronger connections. By consolidating multiple functionalities into a single platform, SuperApps offer convenience and accessibility, leading to increased user engagement and higher retention rates. Through intuitive interfaces and personalized features, users are empowered to navigate through various services, enhancing their overall satisfaction effortlessly.
1. Enhanced customer engagement
Integrating various services into a single SuperApp facilitates seamless data collection on user behavior, preferences, and interactions. This consolidated data enables companies to gain valuable insights into user trends, allowing for more informed decision-making and targeted marketing efforts. By leveraging this rich source of data, companies can optimize their offerings, personalize user experiences, and drive business growth effectively.
2. Cost-effective development
The consolidation of multiple applications into a single SuperApp also presents significant cost-saving benefits for financial institutions. Businesses can allocate resources more efficiently by streamlining development efforts and reducing the need to maintain multiple applications. This streamlined approach minimizes development costs and reduces ongoing maintenance efforts, allowing companies to optimize their budgets and focus on delivering exceptional user experiences.
3. Increased ROI and customer satisfaction
SuperApps cater to users' multifaceted needs, attracting a larger user base while also driving higher revenues, particularly through commission earnings from various transactions. By delivering value-added services and meeting the evolving demands of users, companies can enhance customer satisfaction and loyalty, ultimately maximizing their return on investment.
4. Enhanced brand visibility
By consolidating a wide range of services into a single app, companies can significantly enhance their brand visibility and market presence. SuperApps serve as a one-stop destination for users, capturing their attention and fostering brand recognition. Through strategic branding and seamless integration of services, financial institutions can effectively position themselves as industry leaders, gaining a competitive edge in the market.
An all-in-one SuperApp experience for financial services
For financial service providers, Super Apps offer the opportunity to combine traditional banking services, an open ecosystem, and a referral business under one roof. Services that are not commonplace today, such as lead generation through precise campaign data, can be an exciting business case for both sides.
For example, fulfilling a customer’s desire in the B2C sector, providing buy now, pay later solutions with added incentives for the bank, or enabling service mediation in the B2B industry such as bank insurance or facilitating leasing and logistics services.
Adopting the 'start simple, start now' principle is essential when venturing into the realm of SuperApps. It is crucial to understand that a Super App does not need to launch with an overwhelming array of 20 partnerships and 40 services from day one.
Hyper personalisation
The key to success lies in personalization. A 55-year-old has different needs than a 19-year-old. Therefore, it is imperative for the SuperApp to not only offer a diverse array of services but also have the capability to tailor them to individual needs - whether it be for e-scooter rides or incentives for solar thermal energy.
It will be crucial to find a balance between diversity and relevance. The applications should be able to intelligently curate a selection of options that offer the utmost value to each user.
Maintaining and developing partners
Cooperation with strategic partners will be a decisive competitive advantage. This prompts consideration of whether forging exclusive partnerships, such as with high-end car rental companies or luxury fashion brands, can enhance the appeal and exclusivity of a SuperApp.
This also raises the question of competition and to what extent is the ecosystem of a super app enriched or weakened by it. Striking the right balance between offering exclusive partnerships and cultivating a competitive marketplace that empowers users with diverse choices will be a crucial aspect of the development of SuperApps.
Regulatory issues
In a landscape where SuperApps hold the power to revolutionize the digital realm, strategic and regulatory hurdles are stepping into the spotlight alongside technological advancements.
Financial institutions will need to carefully navigate the intricate dance of managing user data as SuperApps are required to comply with regulatory standards and prioritize user privacy, especially when handling data analysis and sharing it in transactional procedures.
Next-level banking: Supercharging convenience with SuperApps
SuperApps offer a myriad of advantages and opportunities for banks and credit unions, ranging from enhanced customer engagement and cost-effective development to increased ROI and brand visibility. By embracing this innovative approach to service delivery, financial organizations can unlock new levels of success and establish themselves as leaders in the digital landscape.
However, while SuperApps are undoubtedly founded on technological advancements, their ultimate triumph hinges on a multitude of factors that extend well beyond the realm of technology alone. The future will show how these complex systems can keep pace with the fast-moving digital world, individual user needs, and strict regulatory requirements. Seeing how they evolve to meet these diverse and ever-changing challenges will be exciting.
Discover how ebankIT can take your services to the next level by downloading the ebankIT brochure.
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