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Originally Posted On: Fintech Apps: Trends Impacting Growth & Retention | AdAction.com

 

The digitization of banking and investing appears to be widespread because there’s no denying the attention we give to our mobile devices. With just a few clicks on fintech apps, you can check balances, pay bills, invest, or send payment. The need to have cash on hand or write a check at the grocery store feels like another era.

However, the adoption of financial apps still lagged in some areas, with consumers frequenting branches or a preference for desktop user experiences. Then the pandemic hit, and your smart device became a means to connect with the world. Covid-19 is a major part of the trend conversation in fintech app growth and retention, but others are working in parallel, as well.

We’re breaking down these trends in this post and what they may mean for fintech mobile app marketers.

The Pandemic Changed How People Bank and Pay

Branches were still a popular option for consumers before the pandemic. According to the J.D. Power 2020 U.S. Retail Banking Satisfaction Study, 52% of retail bank customers were branch-dependent. The classification means they either exclusively used a branch or used a hybrid of digital and in-person channels.

With less access to banks because of restricted hours and consumers with high-risk concerns relating to Covid-19, the digital app became not just something nice to have but a necessity.

The assumption that fintech app usage grew is a correct one, according to the Mobile Finance Report 2020. The number of sessions in the apps grew by 49% on average, with Japan, Germany, Turkey, the U.S., and the U.K. leading the way. Another survey discovered that 44% of 18-34 year-olds enrolled in mobile banking for the first time during the pandemic.

Are Consumers Using Mobile Payments More?

Payment apps deliver convenience, and that’s always been their selling point. You use PayPal to send money because it’s easier than going to an ATM or writing a check. For that convenience, you’re okay with the fee. Before the pandemic, according to a 2019 Federal Reserve study, 50% of consumers used at least one mobile payment app.

Living a cashless life is certainly a mindset for younger generations, but it makes more sense in a pandemic for so many reasons. It’s still convenient, but it’s also safer. Usage of these apps increased, on average, 26% due to the pandemic.

Older Populations Are Emerging Adopters of Fintech Apps

Before the pandemic, those over 50 remained hesitant to use finance apps. That’s changing dramatically according to post-pandemic data. A survey from April revealed that online activities are accelerating for seniors, with 77% of survey respondents confirming they were using digital channels to make a financial transaction or pay a bill.

Financial apps may have neglected this demographic before Covid, but now have reason to increase their push to convert these customers to app users.

Takeaways

• Mobile apps are now a necessity for financial activity.
• All generations are in play.
• Being cashless is becoming more acceptable.

How to Leverage the Trend to Drive New Users and Keep Them

• Use CPI (cost per install) programs to boost app rank, which can lead to greater app store visibility and organic installs.
• Consider CPE (cost per engagement) campaigns to drive deep-funnel engagement post-onboarding as reminders of all that’s possible in your app.

Investment Apps Democratize Process, Make Trading More Accessible

Now anybody can start trading with no minimums and low-cost fees on investment apps. They worked hard to deliver a transparent and straightforward onboarding process. These apps aren’t courting seven-figure and up investors. They are targeting the regular Joe and ensuring they feel confident as an investor. It’s working! This vertical is the second-fastest growing in 2020 and realized a 88% growth in the first six months of the year.  

Takeaways

• Investing is accessible to more people than ever.
• Consumers trust investment apps and appreciate the ease of use.

How to Leverage the Trend to Drive New Users and Keep Them

• Launch burst keyword ads around investing, stocks, or other basic search terms to target consumers looking for easy ways to buy and trade.
• Position CPE ads that convert on registrations or first deposits.
• Explore options for performance-based social media influencer campaigns that could entice your key demographic to start trading.

Fintech Apps Have Invested Heavily in UX and Feature Upgrades

Major financial institutions rolled out apps years ago, but they weren’t always a seamless experience. Additionally, they lacked full functionality when compared to logging in from a browser on a desktop. The Big 6 (Bank of America, Chase, Citibank, PNC, U.S. Bank, and Wells Fargo) have invested heavily in UX (user experience design). They have full teams of UX designers, mobile developers, and content strategists that are continually deploying enhancements to their digital product.

This investment paid off, according to the J.D. Power Report, which found that 49% of Big 6 customers have high levels of digital engagement. Additionally, the report found that 30% of bank customers now solely use digital channels and don’t visit branches at all.

A better UX means that consumers can easily do everything they need to do from their mobile devices. Integrations with payment mediums help, as well. The Wells Fargo app allows you to use Zelle to send money.

Banking apps also aggregate all accounts into one clean view. You can log into one app and see checking, savings, investments, retirement accounts, mortgages, and more. Banking apps didn’t get here overnight. They had to meet the demand of their users. They did that by learning and listening to their users.

Takeaways

• UX and features matter for satisfaction and long-term use.
• User feedback has been critical to developing the most optimal app experiences.
• For apps to remain competitive, they have to be on track for continuous improvement.

How to Leverage the Trend to Drive New Users and Keep Them

• Experiment with non-rewarded ads that highlight functionality and ease in addressing frustrations or user struggles proactively.
• Deploy CPI campaigns on exclusive and incremental inventory unique from the users you’re hitting in other channels.

Take Advantage of these Trends to Boost Your Fintech Apps

The world of fintech is on fire. There are opportunities for any financial apps to gain a high volume of new users and keep them. We’ve worked with players in the industry for years, helping them reach and exceed their goals. Let us do the same for your app. Talk to our experts today about refining your strategy.