Super App takes users to new heights by enabling them to conveniently perform numerous tasks in a single app on their smartphone, such as payments and investments. Were bank concerns about fintech and neobanks misguided?
Whether it’s paying bills or ordering food, super apps help improve the lives of millions as a single point of connection between services and online products.
The competition between traditional finance and super apps seems to be higher than ever, as proprietary banking apps are no longer so appealing to many.
In fact, if banks simply embrace this newfound market dynamics and focus solely on their own channels, they are likely to hinder their growth.
Before we look into what banks can and can’t do, let’s start with the basics to understand what a super app is, what its functionality is, and what its purpose is.
Asia’s Super App: China Leads
China’s Alipay and WeChat have completely reshaped everyday payment methods on the Asian continent by connecting both consumer behavior and consumer life.
These platforms act like Swiss Army knives, a ‘one-stop-shop’ where users can send text messages, book tickets, make plans, and perform other online activities.
The premise is simple, the delivery is seamless. In fact, it also affects people like: Elon Musk may be in the crosshairs About building something similar (maybe even on Twitter).
Paytm is another example of a pioneering super app. The Indian powerhouse boasts bill payment capabilities and other useful features like event booking, QR code payments, and more.
Moving to Southeast Asia, Grab helps users by integrating package delivery services, food ordering services, and also offers foreign exchange investments, loans, and many other payment services.
Some super apps already offer insurance, so who really knows where those limits are?
Banks Worry More Than User Problems
This fork into payment systems, loans, and investments is exactly what banks need to worry about, as super apps can easily slip into what was once the realm of traditional finance.
In fact, being present at every stage of a user’s life could make it even easier for super apps to collect client behavioral data and patterns and customize financial services accordingly. This is something banks often struggle with.
Super apps aim to solve a wide range of needs in their users’ daily lives, so it’s a natural step to provide financial solutions for those who don’t have a bank.
Super apps and unbanked people
Superapps could also be the perfect way around a known problem for the unbanked: the lack of access to financial services from traditional banks and traditional finance.
From banking app to super app bank
In fact, it appears banks are considering whether to offer banking as a service within the superapp ecosystem itself.
The reason behind this is simple. Super apps can provide financial services with unparalleled reach in an incredibly efficient way.
In this way, Open Banking empowers the super-app ecosystem to take it to new heights because it enables:
- Empower your users with personalized experiences derived from their own data, or by leveraging AI technology to deliver products and services that are perfectly tailored to your needs.
- You can perform several tasks such as checking account balances, making payments, and performing traditional banking operations without leaving the app.
Super Apps and Banks: Friend or Foe?
Competitive threats are growing as superapps appear to be making inroads into banking territory.
Given how many products and services are embedded in super apps, how can a bank incentivize someone to use their own app?
The best possible course of action seems to be to strengthen their reach through partnerships and collaborations within the financial services industry. It also helps you leverage your brand.
In addition, modernizing themselves will allow banks to peer into new technologies such as machine learning and artificial intelligence.
So should banks worry about super apps, or welcome them as a potential way to open up new avenues of business? Time will surely tell.
Super App takes users to new heights by enabling them to conveniently perform numerous tasks in a single app on their smartphone, such as payments and investments. Were bank concerns about fintech and neobanks misguided?
Whether it’s paying bills or ordering food, super apps help improve the lives of millions as a single point of connection between services and online products.
The competition between traditional finance and super apps seems to be higher than ever, as proprietary banking apps are no longer so appealing to many.
In fact, if banks simply embrace this newfound market dynamics and focus solely on their own channels, they are likely to hinder their growth.
Before we look into what banks can and can’t do, let’s start with the basics to understand what a super app is, what its functionality is, and what its purpose is.
Asia’s Super App: China Leads
China’s Alipay and WeChat have completely reshaped everyday payment methods on the Asian continent by connecting both consumer behavior and consumer life.
These platforms act like Swiss Army knives, a ‘one-stop-shop’ where users can send text messages, book tickets, make plans, and perform other online activities.
The premise is simple, the delivery is seamless. In fact, it also affects people like: Elon Musk may be in the crosshairs About building something similar (maybe even on Twitter).
Paytm is another example of a pioneering super app. The Indian powerhouse boasts bill payment capabilities and other useful features like event booking, QR code payments, and more.
Moving to Southeast Asia, Grab helps users by integrating package delivery services, food ordering services, and also offers foreign exchange investments, loans, and many other payment services.
Some super apps already offer insurance, so who really knows where those limits are?
Banks Worry More Than User Problems
This divergence into payment systems, loans, and investments is exactly what banks should be worried about, as superapps can easily slide into what was once the realm of traditional finance.
In fact, being present at every stage of a user’s life could make it even easier for super apps to collect client behavioral data and patterns and customize financial services accordingly. This is something banks often struggle with.
Super apps aim to solve a wide range of needs in their users’ daily lives, so it’s a natural step to provide financial solutions for those who don’t have a bank.
Super apps and unbanked people
Superapps could also be the perfect way around a known problem for the unbanked: the lack of access to financial services from traditional banks and traditional finance.
From banking app to super app bank
In fact, it appears banks are considering whether to offer banking as a service within the superapp ecosystem itself.
The reason behind this is simple. Super apps can provide financial services with unparalleled reach in an incredibly efficient way.
In this way, Open Banking empowers the super-app ecosystem to take it to new heights because it enables:
- Empower your users with personalized experiences derived from their own data, or by leveraging AI technology to deliver products and services that are perfectly tailored to your needs.
- You can perform several tasks such as checking account balances, making payments, and performing traditional banking operations without leaving the app.
Super Apps and Banks: Friend or Foe?
Competitive threats are growing as superapps appear to be making inroads into banking territory.
Given how many products and services are embedded in super apps, how can a bank incentivize someone to use their own app?
The best possible course of action seems to be to strengthen their reach through partnerships and collaborations within the financial services industry. It also helps you leverage your brand.
In addition, modernizing themselves will allow banks to peer into new technologies such as machine learning and artificial intelligence.
So should banks worry about super apps, or welcome them as a potential way to open up new avenues of business? Time will surely tell.