AppsFlyer, the global attribution leader released, “The 2020 State of Finance App Marketing Report for APAC region,” indicating that India has witnessed a massive technological disruption in the fintech segment. The APAC region’s performance can be attributed to some unique business models created by mobile entrepreneurs propelling the growth of an “app-tizing economy.” Further, the finance app installs market share shot up by nearly 90 per cent in 2019.
The report is a comprehensive account of data insights covering 3.5 billion installs of 1,800 apps, which marked India as a hotspot in the APAC region for innovation in the financial services space. The driving force behind it has been the unbanked/underbanked segment, with money-lending apps lead the pack accounting for close to 50 per cent share in H2-2019. Financial monitoring apps remain one of the preferred channels by users.
Impact of COVID-19 on app adoption
The State of Finance App Marketing’s 2020 edition is based on data that preceded the global outbreak of COVID-19. But, as people across the globe are working from home and staying at home, app usage in many verticals is on the rise. With many physical bank branches closed, more account owners are expected to monitor their finances online, mainly with their phones via banking apps. Users are also avoiding cash, which is touched by a massive number of people and prefer wireless payment methods via payment apps. The need for quick, short-term loans, as well as awareness about digital-touch transactions during an economic crisis, has contributed to increased app adoption. The volatile stock markets have also led to an increased usage of investment apps among investors.
The report shows that almost five in every 100 apps downloaded in 2019 were finance apps. It is the second-highest category and the sixth-largest in terms of total installs. The APAC region makes a case for user experience (UX) showcasing high app registration completion rate, a critical factor for many fintech companies.
“India is home to a huge unbanked population. However, it also has one of the fastest-growing digital and mobile-first populations in the world. People in our region use their mobile phones for a whole range of lifestyle activities, including financial needs. This is especially relevant today, as the global COVID-19 pandemic is affecting access to financial services. People across the world are staying at home, and app usage is on the rise, especially with payment and banking apps,” said Sanjay Trisal, Country Manager for AppsFlyer India
The rise of innovative FinTech companies has led banks and other regulated financial institutions also to adopt new technologies and develop digital capabilities.