Although the development of financial super apps is highly popular in Asia, businesses in the West are still embracing it. As a result, a lot of individuals are particularly interested in the issue of finance super applications. This is due to the fact that there is a distinct need as well as a substantial opportunity that is currently mostly unmet. Thus, many finance sector entrepreneurs in platforms like EquityMatch are eyeing the integration or development of such applications to gain more startup funding.
A super app is an all-in-one platform for communication, search, navigation, commerce, and payment. These "one-stop-shop" apps provide a smooth, integrated, contextualized, and effective experience, users have started to love them.
Many financial institutions and companies like COSDEF Finance have developed flexible finance solutions. Many institutions have also developed open banking platforms, frameworks, and application programming interface skills necessary to integrate financial services and products into the ecosystems of other businesses in recent years, which can be particularly beneficial for startups seeking startup investment opportunities.
Asia is undoubtedly a force to be reckoned with in the development of these Apps that blur the boundaries between a consumer's social, retail, and financial dimensions of life, especially with the emergence of globally recognized digital giants Alibaba, Tencent, Baidu, and JD.com.
The entire digital ecosystem of services, from e-commerce to digital loans, is poised to serve as the foundation for an economic power equalizer between the underserved population in the area and the rest of the developed world, given that more people in Asia own mobile phones than bank accounts.
It is evident that there is no doubt that the rise of super apps is expected to increase the urgency of adopting ways to transform the financial sector and streamline startup funding processes.
So, how exactly will these Apps Reshape the Financial Sector?
Top 6 ways Super Apps will Transform the Financial Sector
#1 Enhance Productivity
According to a survey, open banking and embedded finance solutions that allow users to connect and customize their experiences across third-party ecosystems would be "highly valued" by 63% of respondents. All age groups shared this opinion, which focused mostly on practical advantages like making the most of rewards programs, personalizing items, or offering guidance and knowledge that was pertinent (Lele and Mannamkery, 2021).
With a few fast clicks on their cell phones, super apps may allow users to access mobile banking, digital payments, startup investments, insurance, and more. Thus, financial tasks will become more efficient as a result of the hassle of switching between several platforms being eliminated.
#2 Provide Easy Access to Financial Services
Super apps will provide basic functions like paying bills, transferring funds, and creating accounts. This makes it possible to manage finances without having a real bank location. Peer-to-peer transactions, digital wallets, and smooth integration with e-commerce platforms and merchants are typically supported by these systems. Thus, they promote cashless transactions and streamline the processing of mobile payments.
#3 Improve Customer Experiences
These apps will also provide a smooth platform for a variety of financial chores with an emphasis on the user experience and help companies that provide financial services gain startup funding. Apps of this kind can improve user experience by hyper-personalizing and integrating financial services into a platform for living. Super app payment options are already more common in Asia than credit, debit, and cash. For example, the two most popular super apps in China, WeChat, and Alipay, are used as the primary method of payment by 92% of people living in China's major cities (Lele and Mannamkery, 2021). Alipay began as a basic mobile e-wallet in 2008 and progressively expanded its offerings to become a fintech powerhouse!
#4 Provide Data Analytics and Personalization
What’s amazing is that super apps collect preferences, past transactions, spending trends, and more. Thus, this allows businesses to use this information and maximize their product development and marketing campaigns. It also helps them have a deeper comprehension of their intended market. On the other hand, companies can use data analytics to control risks, abide by laws, and protect user information. Furthermore, the analytics provided by super apps can identify irregularities, guaranteeing data security and regulatory compliance.
#5 Investment Insights
Well, there's more to the data analytics they provide!
These applications employ data analytics to offer suggestions for investments to users depending on their financial goals, risk tolerance, and market conditions. This will allow for making wise investment decisions, whether it is startup investments or obtaining data-driven insights.
#6 Managements like never before
Without a doubt, super apps will respect the interests of the clients who want to invest in mutual funds, equities, bonds, or digital assets. Live market data and portfolio tracking are indeed amazing benefits of super apps. They will also provide personalized suggestions and investment analysis. More amazingly, they will also integrate goal setting, spending tracking, budgeting tools, and reminders for bill payments and financial milestones to assist users in managing their finances. Ultimately, it will also help in grabbing the eye of investors for startup funding.
Data analytics and FinTech super applications work together in a way that is revolutionary! These apps offer a one-stop shop for efficient, personalized, and thorough money management. They provide safe, tailored, and data-driven financial services that enable customers to take charge of their financial destinies thanks to sophisticated data analytics. Many Fintech companies in platforms like EquityMatch have started eyes these applications to enhance their services and become part of the revolution.