The Rise of Fintech ‘Super App’

varsha sarkar

July 21, 2023

4:43 pm

The Rise of Fintech 'Super App'

In the banking industry, super apps are all the rage since they give users a one-stop shop where they can do several operations on a single platform. Super apps are growing in popularity along with smartphones and mobile applications, but what are they and who uses them? The idea of super apps, their advantages and disadvantages, and how businesses are utilising them to provide clients larger services are all covered in this article.

Describe a Fantastic App

An all-in-one online platform known as a super app provides a variety of services and experiences through a number of small apps that are tailored to the user’s demands.

Simply described, a super app is an ecosystem of applications created to simplify users’ lives. It is a platform that combines a wide range of services and apps to provide consumers a smooth and personalised experience. For instance, a banking app that combines administration of insurance policies, electricity bill payments, tax payments, and budgeting services.

A super app is not just a composite mobile app or a web portal, but it’s a platform that delivers modular mini-apps that users can activate for a personalized app experience. This approach allows for a more targeted user experience and also enables companies to collect data on user behavior, which can be used to improve services and offerings.

The use of smartphones has created a huge demand for super apps, with an estimated 7.1 billion people globally using smartphones, and the rate is growing by 10% every year. 

However, there are downsides to super apps, with a lack of consumer trust being a major issue. Consumers are wary of the collection of data and the rising power of the tech industry’s ongoing issues with privacy and security. Super apps must have a compelling value proposition to convince users to adopt them and overcome the trust issues.

Who uses Super apps?

Super apps are becoming increasingly popular globally, and their adoption is primarily driven by the widespread use of smartphones. According to a report by ReportLinker, an estimated 7.1 billion people worldwide use smartphones, and the rate is growing by 10% every year. Super apps are particularly popular in Asia, with countries like China and Singapore embracing the concept.

In China, super apps have become an essential part of daily life. Apps like WeChat, Alipay, and Tencent have evolved into multifaceted platforms offering everything from messaging and social media to shopping, banking, and transportation services. With the Chinese government’s encouragement, the use of super apps has exploded, with WeChat alone boasting over a billion users.

Outside of Asia, super apps are also gaining traction. For instance, in January 2023, the US-based fintech Medsi launched its new fintech and healthtech proposition for customers in Mexico. The platform offers healthcare through its unique payment gateway and telehealth offerings, providing a revolving line of credit that can be used by families for essential or elective health services and procedures.

Super apps are being used by businesses of all sizes, from tech giants like Google and Facebook to startups like Medsi. The appeal of super apps is their ability to offer personalized experiences through a series of mini apps that cater to the company’s customer demographic. As such, the adoption of super apps is expected to continue to grow in the coming years, providing a range of services to users and businesses alike.

What are the Downsides?

Despite their many benefits, super apps also come with a few downsides that are worth considering. One of the biggest concerns is privacy and data security. Super apps require users to share a lot of personal data and information, which can be a significant risk if the data falls into the wrong hands. This is especially concerning considering the number of high-profile data breaches that have occurred in recent years.

Another downside of super apps is the potential for overwhelming users with too much information and too many options. The whole point of a super app is to provide a one-stop-shop for users, but if the app becomes too cluttered or complicated, it can become difficult for users to navigate and use effectively.

Lastly, there is the concern that super apps could become too dominant in their respective markets, leading to a lack of competition and innovation. As more and more companies develop their own super apps, there is a risk that smaller players will be squeezed out, and the market will become dominated by a few large players. This could stifle innovation and limit the range of options available to consumers.

Conclusion

Super apps are becoming increasingly popular among customers who seek all-encompassing online platforms that offer personalized experiences through a series of mini apps that appeal to their specific needs. While super apps can provide broader services at lower costs, there are concerns regarding consumer trust, particularly around the collection of data and the ongoing issues with privacy and security in the tech industry. However, as demonstrated by the case of Medsi, super apps can also provide much-needed services to underserved populations, such as healthcare for families without insurance options in Mexico. As the demand for super apps continues to grow, it will be essential for companies to address these concerns and provide compelling value propositions to their users.

varsha sarkar

July 21, 2023

4:43 pm

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