According to the Appsflyer "State of Finance App Marketing", so far this year the digital banking vertical has already grown its installs by 45% in this first quarter, compared to the same period of last year. It’s a great trend but not only Digital Banks are growing in 2021, also traditional banks are also picking up the speed this year, they’ve grown 22% on installs this first Q compared to last year.
Fintechs were significantly impacted by the COVID-19 pandemic, prompting substantial changes in their operations to support the population and facilitate easier access and onboarding globally. Digital transformation was the catalyst for rapid growth in this sector, with mobile apps playing a central role, especially in mobile-first or mobile-only developing markets. According to AppAnnie, finance apps were downloaded 4.6 billion times in 2020. Despite an initial drop in demand during the first lockdowns of 2020, the number of new users for finance apps has been steadily rising.
Social distancing measures led to a significant increase in the use of payments apps, as people shifted to contactless payments to avoid cash and physical interactions.
The stock market boom and the expansion of cryptocurrencies during the pandemic spurred significant growth in investment apps.
Account holders increasingly demand a seamless digital financial experience via their phones, driving innovation among both digital players and traditional banks.
Financial companies have intensified efforts to increase app traffic through user acquisition and remarketing strategies. In 2020, marketers spent over $3 billion to attract new users due to the global surge in demand for FinTech apps.
Countries like India, Brazil, and Indonesia have contributed significantly to the rise in new users and installs of digital banking apps. Nearly half of all downloads in this category come from these regions, driven by large populations of unbanked or underbanked individuals.
In the EMEA region, users who download finance apps demonstrate a strong intent to perform financial activities, with 25% to 35% completing the registration process despite its length. This indicates a positive user experience, as at least one in four people who install a finance app completes registration.
In the UK, digital banking apps are particularly popular, with over half of users registering within 30 days of installation. In Africa, lending apps achieve a conversion rate of around 70%.
Throughout the EMEA region, most users complete registration on the day of installation, with nearly 90% completing it by day 14.
Finance apps in the EMEA region heavily rely on marketing to drive demand, with over 50% of installs being non-organic despite high media costs. From Q1 2020 to Q1 2021, marketing-driven installs increased by 270% in Western Europe, with the UK leading at a 300% increase, followed by Germany at a 230% increase.
Diverse marketing efforts: Utilize a mix of marketing strategies and media to carefully allocate your budget between user acquisition campaigns and maximize your investment. Implement remarketing efforts to maintain brand visibility and stay ahead of competitors.
Optimize the registration funnel: Continuously monitor and optimize the registration funnel to reduce the time between installation and registration, enhancing UX and conversion rates.
Fraud prevention: Despite a significant decrease in app install fraud rates in early 2021, fraud remains a concern. Stay equipped with the latest fraud prevention tools to combat evolving fraud tactics.
Consider expanding to developing countries with large unbanked and underbanked populations. Your app can help these individuals become users and improve their financial lives.
These recommendations can help your fintech grow even faster. For a robust, tailor-made strategy, contact the Rocket Lab team. With years of expertise in growing finance apps, we can help you achieve remarkable success.