Third-party apps grow users faster than banking apps

As banks compete for mobile-centric Gen Z customers, new data from the mobile analytics platform App Annie suggests fintech companies are growing their app user base faster than banks. The report, titled “The State of Mobile 2020,” found that, globally, the top - 10 fintech apps grew their monthly active users by 20% year over year in 2019 compared with just 15% fo r banking apps. “What is working for other generations is not necessarily going to work for Gen Z,” said Amir Ghodrati, director of market insights at App Annie. “Your mobile experience needs to be on par with all their other mobile experiences. You’re not just competing with other finance apps or other banking apps. You’re competing with every other app experience they have through social media and gaming.” [caption id="attachment_184366" align="aligncenter" width="676"] Source: App Annie[/caption] Although banks are increasingly prioritizing their mobile experiences, App Annie suggests a common mistake among them is simply transporting a web banking experience into an app. According to G hodrati, banks can learn from fintechs that have created a separate mobile experience that includes an intuitive setup and customizable features. Ghodrati added that many fintechs created a mobile-centered approach well before their bank counterparts, giving them a head start . He said one key to increasing app usage is to create a fun experience, singling out PayPal-owned Venmo and its social feed as an example. He also pointed to Robinhood , wh ich gives free stock to new users and the users who refer them . “Apps can make their experience more fun by celebrating small wins, creating a bright and color-coded environment where things change based on status, and incorporating more social elements,” Ghodrati said. “You need to create a reason why people want to come back to the app and also incentivize them to share this experience with others.” See also: Payment apps are struggling to retain users, data shows The report also highlighted that mobile wallets from fintech companies get higher engagement than those from banks. Globally, mobile wallets fro m non-bank apps averaged one more weekly session per user than mobile wallets from banks , with n otable exceptions being Indo nesia, Brazil, France, Germany, Canada, Russia and the U.K. [caption id="attachment_184367" align="aligncenter" width="768"] Source: App Annie[/caption] Overall, consumers around the world used their finance apps more than 1 trillion times in 2019, a 100% increase from 2017. Consumers spent $120 billion in app stores and an average of 3.7 hours per day on their mobile devices in 2019. App Annie analyzed data from more than 8 million apps and thousands of website s, and used t hat information to estimate download numbers, transaction patterns, usage and advertising. The company provides insights for clients to help them with marketing, product management and growth strate gies , and i ts clients in clude Pinterest, LinkedIn, United Airlines and Coca-Cola. Bank Innovation Ignite, which will take place March 2-3 in Seattle, is a must-attend industry event for professionals overseeing financial technologies, product experiences and services. This is an exclusive, invitation-only event for executives eager to learn about the latest innovations.

Third-party apps grow users faster than banking apps

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Third-party apps grow users faster than banking apps

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