Today, online transaction had become a normalisation in our daily life. From buying the littlest product to even the most expensive one, everything can be done through our smartphone, all for the existence of online transaction. Significantly, all we need to do is to download the related apps. Unfortunately, as we becoming accustomed to online transaction, we have to engage ourselves with abundance of apps which lead to a condition called ‘app fatigue’, a term that describes users becoming too overwhelmed or no longer eager in using new apps. This give rise to the use of superapps. While superapps beginning to solve app fatigue through convenience and speed, it also affect the banking industry. Therefore, what are the significance of superapps on banking industry?
Superapps that combines a wide range of experiences, services and functionalities through a single platform has brought about seamless experiences to users. It keeps them engaged while dismissing the need to manage multiple single-purpose apps. With many features to offer; for instance, in the finance industry, superapps enables cashless payments, mobile payments, investment platform, credit and loans as well as QR code payments and rewards. In retails services, superapps allows hotel bookings, e-pharmacies, transportation ticketing, grocery shopping and more. Surely the apps Alipay, WeChat (yes it has now transformed into a superapps) had reach our ears many times. Indeed superapps is everywhere.
The rise of new technologies has always been both beneficial and challenging. The significance of superapps on banking industry is no exception. Banking industry is facing competition with superapps both in the East (Alipay, WeChat, Grab, Cameer, etc) and the West (Paypal, Klarna, Revolut). While, superapps may appears as a threat to banking industry, a proper respond taken by the banking industry towards superapps will give them control over the competitive environment. Here are three responds that can be executed:
1. Accept and improve offerings
A well-established bank may opt for this option. They can retain in the market by leveraging their large customer base data with flexibility in allowing the customers to use superapps as parts of their financial demand.
2. Extend and embed
A bank can become banking-as-a-service partner to superapps ecosystems. This is done by embedding their service to the existing superapps.
3. Compete with their own superapps
In order to have more leading roles in the industry, a bank need to launch their own superapps by either creating a superapps or one-stop shop that encompasses both financial and non-financial offerings.
As much as every respond had its own challenges, the expectation that superapps will have greater role in the industries is undeniable as the number of mobile device users are increasing as well as the increase of digital business. Having one or being a part with superapps is essential to ensure resiliencies in this technology disruptive world.
E-SPIN Group in the business of enterprise ICT solutions supply, consulting, project management, training and maintenance, for multinational corporations and government agencies across the region E-SPIN did business, since 2005. Please feel free to contact E-SPIN for your requirements and project inquiry.
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