Fintech App Industry Roundup: Trends, Strategies, and More
The fintech app industry has been surging steadily for the past few years. Consumers now look to their smartphones for banking, investing, trading, budgeting, and more. According to Sensor Tower data, the industry had a 13% year-over-year usage growth in Q1 2022.
We’ve also been tracking trends for finance apps, including:
- Financial app downloads have increased, especially in digital banking.
- Total demand for the category rose 110% in 2021.
- Financial services apps took the top spot for a sub-category in U.S. installs, followed by investment, digital banking, and traditional banking apps.
With high demand also comes more competition in the space. Investing and trading are skyrocketing with self-service apps. And overall consumer behavior related to financial activities changed forever, with users across all demographics going digital.
So, let’s look at what’s happening in the industry now and what to expect.
Growth Expectations Are on Fire
Experts project that the fintech app market will reach $2.01 billion by 2028. The report calls out specific drivers of the 11% CAGR (compound annual growth rate). Let’s look at each of these trends and analyze what they mean.
Investment Apps Drive High Demand in Emerging and Developed Economies
Everybody wants to be an investor. Apps make it easy for a novice to start slow and learn the basics. In 2021, there was the rise of Robinhood and its cohorts, along with cryptocurrency. Both of these areas are cooling off some in 2022 due to volatility. However, investment apps remain a sub-category with legs.
Projections of growth for this segment are high. Both emerging economies like India and China and more developed ones like the U.S. and U.K. are fueling it. The Apple App Store will see a higher CAGR at 12.5% for the period, attributed to the desire for premium trading apps in developed economies.
Key Takeaways for Investment App Marketers
- Determine if your app is ready for emerging economies. If so, chart out a plan to break into new geos using multiple ad tactics to engage a unique audience. Be sure you’re using an ad network with the reach you need.
- Update your UA (user acquisition) strategies for developed economies by segmenting and taking advantage of custom product pages (CPPs) in the Apple App Store. You’ll likely see more uploads and long-term engagement by creating relevant CPI (cost per install) or CPE (cost per engagement) campaigns that drive to a personalized landing page. For example, if you’re attracting first-time investors, make sure your content speaks to them.
- Rethink your approach for investment apps that are waning. Many apps led with high-dollar spokespeople. But what do they know about investing? Instead, work with social influencers that are experts in your category and use a performance-based model, so you only pay for installs.
- Leverage top and deep funnel CPEs in saturated markets. Start with a registration CPE using offerwall inventory, which can boost deposits made. Then use a deeper funnel option that expressly drives them to “buy crypto,” for example.
Asia Pacific Is the Top Growth Region
Experts note that this area is accelerating the fastest. In 2020, the region made the largest contribution to the fintech app industry with a 45% share. There are several reasons for this. One we already covered, as some countries in the region like China and India are emerging economies.
The others include:
- The rise of consumerism in China and thus a greater need for personal financial tools and banking apps.
- Chinese and Indian consumers are also looking for more risk management solutions and business intelligence solutions to meet the need for financial institutions.
Key Takeaways for Asia Pacific Markets
- If you’re flat in this market, there’s room for growth. Remember to customize apps and content to fit the needs and norms of other cultures. By doing this, your app appears more aligned with their needs.
- If you’re not in this market but want to be, you’ll need to develop a specific strategy. That will involve how to acquire these consumers, appealing to their particular needs. You’ll also need a network for scale.
Finance Apps Fill Need for Business
Financial apps are not just for consumer use. Many companies, especially SMBs, use them to improve workflows and simply financial tasks. The apps that are fueling this growth include:
- Bookkeeping management apps for scanning and uploading financial documents.
- Debt management business intelligence tools to track financial statements.
- Accounting apps for quick invoicing and payment receipt.
Key Takeaways for Financial Apps for Business
- Lead with ease of use in your UA campaigns because that’s what matters to this group.
- Play up features that allow busy business owners to keep finances up to date on the go.
Launch keyword burst campaigns using terms around business bookkeeping, debt management, business intelligence, and accounting. Such a tactic can also support rank management. Burst campaigns increase downloads, which helps apps rise in the ranking lists. As a result, you could see more organic uploads, too.
Personal Finance Apps Must Pivot to Personalization
Another sweeping trend in the fintech app industry is consumer-driven personalization. App users have expectations that companies should know and cater to their needs. This change is more prevalent in developed economies with advanced financial needs and tech-savvy users.
So, how can apps adjust, so they don’t face churn? You’ve got big data, so use it by applying AI and machine learning to understand user workflows and identify the most common concerns users tell you about.
Additionally, apps need direct channels for communication, such as chatbots. Conversational AI chatbots are best because they understand human language and can handle more than simple queries.
Key Takeaways for Personal Finance Apps
- Advanced personal finance app users need to know about the features that create customized experiences. Those should be part of your UA strategy.
- If users haven’t adopted special features, use communication channels (e.g., in-app, push notifications, email) to ensure they are aware.
The Fintech App Industry Is Rich with Opportunity
These trends and the projected numbers behind them demonstrate the opportunity for the category. No matter what subcategory your finance app falls under, there’s reason for optimism. You’ll need to stand out with relevant campaigns and target smart. You’ll also need an app marketing platform built for scale and quality like ours. Connect with our team today to get started.