With Tax Day 2022 in the U.S. just around the corner, we’ve got “money on the mind.” With that said, let’s talk about the latest — and greatest — 2022 trends in fintech apps! Below, we cover recent fintech app trends; the users and markets that are seeing the highest adoption rates; and what retargeting strategies fintech apps can utilize that also align with their regulatory environment.
The Fintech Mobile Gold Rush
With all the chatter about the boom in growth of mobile games in the pandemic, an interesting fact got lost in the noise: fintech apps also saw major growth. In 2021, finance apps generated 5.9 billion new downloads. This represented an almost 28% increase from 2020.
As with many verticals, social distancing restrictions supercharged adoption, almost doubling fintech app use as the use of cash dropped by 42%. To meet this growing demand, the number of fintech apps rose to a staggering 26,000 last year. Altogether in 2021, fintech startups raised $22.8 billion, 50% more than in 2020.
This growth shows no signs of slowing. By 2024, the global mobile payment market size is expected to reach 3 trillion. Innovative start ups in the fintech space are using technology to expand banking services to unsaturated markets worldwide. Users in rural areas that previously had no access to banks are able to use mobile banking apps to manage their personal finances. For example, socially-focused mobile payment platform Netzme, is an app that has set out to revolutionize mobile finance in Indonesia by expanding services to previously unbanked users in rural areas.
Who’s Using Fintech Apps?
Gen Z Users Make Mobile Money Moves
While specific user details differ across apps, Gen Z users are generally the most likely to use trading apps and neobanks across markets. For reference, “neobanks,” are a type of direct bank that operate exclusively online, virtually or digitally without traditional brick and mortar branches.
Along with trading and neobanking apps, Gen Z is also the most likely demographic to use money transfer apps like Venmo, Cash App and Splitwise. This shows that Gen Z users are comfortable using their mobile phones as a mode of payment instead of cash.
As we know from ecommerce app trends, Gen Z users are mobile savvy and expect efficient and streamlined processes when using their devices. Fintech apps should keep this in mind by implementing fast and simple money movement and financial flexibility.
Emerging Markets Drive Digital Banking Boom
Thanks to regional pockets of unbanked users and low saturation of the global market, emerging markets — including Mexico, Indonesia, Argentina, and Brazil — have seen huge growth in the fintech category in recent years. As noted in the example above, fintech apps often fill a need that was not previously supplied by traditional banking systems. With that said, over the past 4 years, fintech app growth in the top emerging markets mentioned above was up 250%, 185%, 180% and 175%, respectively.
Mobile banking apps have seen massive growth in the LATAM market specifically — a region in which YouAppi has also seen growth recently due to agency alliances — due to its substantial underbanked community of users. In fact, 70% of LATAM’s population does not have a bank account and almost 80% does not have a credit card. This leaves an available base of users who are more willing to try alternative personal banking solutions. For example, neobanks, which tend to be more accessible and flexible for individuals with little to no credit history.
Fintech App Spend
Following the growth in adoption, fintech app spend has ballooned since 2019 as app marketers invest in ramping up new user adoption even further. According to Singular’s data, the COVID pandemic initially scared fintech marketers, depressing spend from April to May 2020. By mid-2020 that trend reversed. Spend hyper-accelerated into the end of the year, peaking in January 2021. Unprecedented spikes in fintech market spend continued throughout 2021.
How to Retarget Fintech Mobile Users
Fintech app marketers face many regulatory challenges when it comes to retargeting existing users. As YouAppi CMO, Nancy Roberts, learned in a panel she hosted at App Growth Summit New York last year, even the smallest line of copy must undergo rigorous compliance approvals when it comes to adapting creatives and messaging for ads.
Complying with FCC regulations on how to use customers’ data can be complicated to say to the least. Expectedly so, it can also spurn fintech growth marketers from even attempting to source budget internally to invest in retargeting campaigns. So, how can fintech growth marketers use retargeting tactics without the stringent compliance approvals? Put simply: a robust omnichannel marketing strategy.
“For banking apps that have an existing base of customers or a desktop product, there’s already an available and highly-engaged base of users to transition to mobile. For these brands, the use case is about clearly communicating the value of using the app to customers across traditional channels,” said YouAppi SVP of Growth, Hilit Mioduser.
Given the nature of finance apps, a robust onboarding user flow that includes a prompt for the user’s email address is likely included. For fintech marketers, emails are a key retargeting tactic. Create emails that are personalized to a user’s drop off point at specific points in your funnel. Messaging should be tailored to respond to where they’ve dropped off. All email messaging should build trust at every stage of the funnel.
New Features, Same Users
A great way to inspire users to come back to your app is launching new products and features. These features might integrate new technologies like cryptocurrency or include new integrations with complimentary financial services products. When you launch these new updates, email your dormant users to inspire them to come back to the app.
Focus on your Product
As players in the business of marketing, we understand how to run effective app engagement campaigns. But with a vertical dealing with sensitive information like fintech, building a good product that inspires trust is critical. Apps offering the most secure and streamlined experience will attract the most customers. Especially as the economy shifts with rising inflation, providing customers with value in the current market will be key.
Takeaways on Fintech App Trends in 2022
Fintech apps have had a massive growth spurt in recent years. This rise is engagement was a result of pandemic restrictions and the rise of a new mobile savvy, neobanking user.
- In 2021, finance apps generated 5.9 billion new downloads, an almost 28% yoy increase.
- Fintech app spend has spiked alongside usage, peaking in January 2021.
- Gen Z users are the most likely to use fintech apps, whether trading, neobanking or money transfer apps.
- Emerging markets are driving the mobile banking boom by filling the market gaps left by traditional banking systems.
- To meet regulatory requirements while still keeping users engaged, fintech apps should focus on email retargeting, promoting new features and building a product that drives value and trust for customers.
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Contact our team to discuss more ideas for how to retarget and retain users to your fintech app in 2022.