Super-apps empower users to new heights as they allow them to conveniently perform a plethora of tasks in one single app on their phone including payments and investing, so could banks’ concerns regarding fintechs and neobanks have been misguided?
Whether it’s paying bills or ordering food, super-apps thrive as they help improve the lives of millions of people by being a single point in which services and online products come together.
With banks’ proprietary apps no longer looking that appealing to many, competition between traditional finance and super-apps seems to be at an all-time high.
The fact of the matter is that if banks simply accept this newfound market dynamic and solely focus on their own channels, they’ll most likely be stifling their growth.
So, before looking into what banks can and can’t do, let’s start with the basics and understand what super-apps are, what their capabilities are, and what their goal is.
Super-Apps in Asia: China Leads the Way
China’s Alipay and WeChat have completely reframed the way daily payments are made in the Asian continent by connecting with both consumer behavior and consumer life.
These platforms work much like a Swiss army knife, being a “one-stop shop” which allows users to go about their online activities such as texting messages, booking tickets, making plans, and so forth.
The premise is simple, and the delivery is seamless. In fact, it has even inspired people like Elon Musk who might even have his sights set on building something similar (maybe even with Twitter).
Paytm is another example of a trailblazing super-app. The Indian powerhouse boasts bill-payment capabilities and other handy features, such as booking events, QR-code payments, and so forth.
Moving on to Southeast Asia, Grab is helping users by integrating package delivery services, food ordering services while also offering forex investing, loans, and many other payment services.
Some super-apps are already offering insurance, so who really knows where the limits are for them… The fact of the matter is that:
Banks Worried About More Than User Pain Points
This branching out to payment systems, loans, and investments is exactly what banks should be worried about as super-apps can easily slide into what was once traditional finance’s territory with absolute ease.
In fact, by being there at every stage of their users’ lives, it might even be easier for super-apps to gather client behavior data and patterns, and customize financial services accordingly, something which banks often struggle to do.
Super-apps aim at solving a wide range of needs in users’ everyday lives, so it will only be a natural step to provide them with financial solutions even for those without a bank.
Super-Apps and the Unbanked
Super-apps can also be a perfect way of circumventing known problems for the unbanked, namely the lack of access to financial offerings from conventional banks and traditional finance.
From Bank Apps to Banks in Super-Apps
The fact of the matter is that banks are apparently pondering whether to provide “banking as a service” within the super-app ecosystem itself.
The reasoning behind this is simple: super-apps can deliver financial services in an incredibly efficient way and with unparalleled reach.
Thus, open-banking can power the super-app ecosystem and take it to new heights as it allows them to:
- Empower users through personalized experiences derived from their own data or via leveraging AI technology to deliver products or services perfectly in tune with the clients’ needs.
- Do several tasks like checking their account balance, making payments, and performing traditional banking operations without ever having to leave the app.
Super-Apps and Banks: Friend or Foe?
As super-apps seem to be branching out into banks’ territory, the competitive threat grows.
Given how many products and services come together in super-apps, how could banks incentivize anyone to use their proprietary app?
The best possible course of action seems to be bolstering their reach via partnerships and collaborations within the financial service industry. Not only will it strengthen the bank’s relevance, but it will also help to leverage its own brand within the app and fintech industry altogether.
Moreover, by modernizing themselves, banks will be able to peer into new technologies like machine learning and artificial intelligence.
So, should banks be worried about super-apps or welcome them as a potential way of unlocking new avenues for business? Time will certainly tell.
Super-apps empower users to new heights as they allow them to conveniently perform a plethora of tasks in one single app on their phone including payments and investing, so could banks’ concerns regarding fintechs and neobanks have been misguided?
Whether it’s paying bills or ordering food, super-apps thrive as they help improve the lives of millions of people by being a single point in which services and online products come together.
With banks’ proprietary apps no longer looking that appealing to many, competition between traditional finance and super-apps seems to be at an all-time high.
The fact of the matter is that if banks simply accept this newfound market dynamic and solely focus on their own channels, they’ll most likely be stifling their growth.
So, before looking into what banks can and can’t do, let’s start with the basics and understand what super-apps are, what their capabilities are, and what their goal is.
Super-Apps in Asia: China Leads the Way
China’s Alipay and WeChat have completely reframed the way daily payments are made in the Asian continent by connecting with both consumer behavior and consumer life.
These platforms work much like a Swiss army knife, being a “one-stop shop” which allows users to go about their online activities such as texting messages, booking tickets, making plans, and so forth.
The premise is simple, and the delivery is seamless. In fact, it has even inspired people like Elon Musk who might even have his sights set on building something similar (maybe even with Twitter).
Paytm is another example of a trailblazing super-app. The Indian powerhouse boasts bill-payment capabilities and other handy features, such as booking events, QR-code payments, and so forth.
Moving on to Southeast Asia, Grab is helping users by integrating package delivery services, food ordering services while also offering forex investing, loans, and many other payment services.
Some super-apps are already offering insurance, so who really knows where the limits are for them… The fact of the matter is that:
Banks Worried About More Than User Pain Points
This branching out to payment systems, loans, and investments is exactly what banks should be worried about as super-apps can easily slide into what was once traditional finance’s territory with absolute ease.
In fact, by being there at every stage of their users’ lives, it might even be easier for super-apps to gather client behavior data and patterns, and customize financial services accordingly, something which banks often struggle to do.
Super-apps aim at solving a wide range of needs in users’ everyday lives, so it will only be a natural step to provide them with financial solutions even for those without a bank.
Super-Apps and the Unbanked
Super-apps can also be a perfect way of circumventing known problems for the unbanked, namely the lack of access to financial offerings from conventional banks and traditional finance.
From Bank Apps to Banks in Super-Apps
The fact of the matter is that banks are apparently pondering whether to provide “banking as a service” within the super-app ecosystem itself.
The reasoning behind this is simple: super-apps can deliver financial services in an incredibly efficient way and with unparalleled reach.
Thus, open-banking can power the super-app ecosystem and take it to new heights as it allows them to:
- Empower users through personalized experiences derived from their own data or via leveraging AI technology to deliver products or services perfectly in tune with the clients’ needs.
- Do several tasks like checking their account balance, making payments, and performing traditional banking operations without ever having to leave the app.
Super-Apps and Banks: Friend or Foe?
As super-apps seem to be branching out into banks’ territory, the competitive threat grows.
Given how many products and services come together in super-apps, how could banks incentivize anyone to use their proprietary app?
The best possible course of action seems to be bolstering their reach via partnerships and collaborations within the financial service industry. Not only will it strengthen the bank’s relevance, but it will also help to leverage its own brand within the app and fintech industry altogether.
Moreover, by modernizing themselves, banks will be able to peer into new technologies like machine learning and artificial intelligence.
So, should banks be worried about super-apps or welcome them as a potential way of unlocking new avenues for business? Time will certainly tell.