Asia-Pacific Leads the Way in Finance Apps Usage: Study

by CXOtoday News Desk    May 16, 2017

fintech

App Annie, one of the leading providers of mobile app analytics and insights reported a massive increase in application usage, globally. While 1 trillion hours of global app usage has been recorded by them in 2016, India has emerged as the 5th biggest user base of mobile apps, all over the world.

At the same time, Asia Pacific is leading the way in finance apps, with over 110bn sessions taking place in 2016, compared to Europe and US clocking in slightly over 50bn and 75bn respectively, according to the report. [Click here to download the full report]

The report observes that mobile applications have now become an integral part of mobile users’ lives, and more and more users are now relying on apps for every basic life activity. The fact that India has beaten countries in USA, UK and Germany in monthly app usage time clearly points to the digital revolution which India is experiencing right now, aided by Jio’s telecom disruption and the introduction of cheaper data tariffs, across all spectrum.

The report also showed that finance category downloads grew faster between 2014-2016 than all other app categories excluding games combined worldwide. Globally, total sessions in Finance apps have increased more than 100% over the past two years. While the Americas and Europe grew rapidly, APAC’s growth was the strongest.

In Asia-Pacific, from mobile banking, mobile payments, and peer-to-peer transfers, to personal budgeting and investing, mobile apps simultaneously provide unparalleled convenience for consumers and create new opportunities for financial institutions to grow their businesses.

“More and more people are turning to mobile apps for their banking and finance needs and apps have now become central to these companies’ customer initiatives,” said Danielle Levitas, SVP of Research at App Annie. “Apps provide a convenient, secure and personalized service for the ever-connected consumer to execute financial transactions. They provide banks and other financial institutions with a unique opportunity to enrich relationships with customers, reduce costs associated with in-branch transactions, and create new growth opportunities,” Levitas added.

app annie

The report explained how download growth in finance apps exceeded download growth for all app categories excluding games across major Asia-Pacific markets. For example, China experienced a 230% spike in downloads in 2016 to 6.7 billion, and more than tripled the growth rate of the sum of downloads across all apps excluding games. Total sessions in finance apps more than doubled in 2016 compared to 2014 in Australia and South Korea, it said.

Also users in South Korea had over 7 billion sessions in banking apps in 2016. This was nearly 4x as many compared to Australians. Meanwhile, mobile banking apps in Japan have seen lower engagement levels due to the country’s entrenched cash-based culture. In Australia, banking apps have become the gold standard for routine banking transactions. The number of average monthly sessions in the top 10 Australian banking  apps exceeds more than 25 times per month, indicating mobile banking apps are part of Australians’ daily routine.

According to the App Annie report, WeChat Pay and AliPay are the leading mobile payment platforms in China with usage penetration that is approximately 7x greater than the average of the top five banking apps in China. “The success of both WeChat Pay and AliPay provides insight into how non-banking technology players can challenge the finance and retail banking sectors,” it said.