Banking services, retail, logistics, and many other industries have undergone significant changes since 2020 worldwide, leading to the emergence of new players and business models in various sectors.
One of these changes is the provision of services through mobile phone applications.
According to IDEA, users utilize various applications such as mobile banking, digital wallets, e-commerce, and public transportation on their mobile phones. Surveys indicate that users spend approximately 3 hours a day on smartphone applications. Conversely, time spent on traditional programs increased by 25% due to social distancing and restrictions caused by the spread of COVID-19.
During this time, one of the prominent topics has been the provision of services in the form of superapplications. Superapplications facilitate the integration of multiple applications, including payment management, into a single application.
In fact, a super application fulfills all the user’s needs within a single program, without occupying the phone’s storage with various applications. Quick access, easy operation, and an enhanced user experience are common features of popular superapplications worldwide. Superapplications can customize services based on user needs. Recently, major players in various industries have integrated services from other sectors into their applications and are moving towards superapplications.
The global superapplications market size reached $61.30 billion in 2022 and is expected to grow at a CAGR of 27.4% through 2030. The increasing acceptance of e-commerce and digital payment is one of the reasons for the growth of superapplications. Moreover, surveys on revenue share in mobile applications have determined that Asia and the Pacific lead with a revenue share of 46.4% in the superapplication market. The 29% growth in the superapplication market of Asia and the Pacific is attributed to population growth and increased internet and mobile phone penetration in the region.
One of the reasons for paying attention to superapplications is their access to various user data. This category of mobile applications can collect user behavioral data, which is used to better understand customer needs and provide improved suggestions and solutions. They can offer better service recommendations based on usage patterns and enhance operational processes.
Superapplications have always included the provision of financial services and payment gateways. However, the question arises: can superapplications be useful in providing banking services for banks, especially in digital banking? With the emergence of electronic banking followed by digital banking, banks have shifted towards offering online services through banking applications.
One noticeable point in the examination of bank applications is the sheer number of these applications. Some banks in the country have more than two applications, and many of their services are duplicated across all their applications. Consequently, the proliferation of bank applications has led to customer confusion when dealing with different applications within a single bank and receiving appropriate services from them.
Superapplications in the banking sector can play a role in fostering partnerships and interactions with other players in various industries. This can take the form of creating payment gateways, shared wallets, and offering credit services. Additionally, by leveraging superapplications, banks can establish the groundwork for collaborations with startups to provide joint services and serve as an infrastructure for developing open banking initiatives within banks. Moreover, using this category of mobile applications, banks can enhance customer loyalty, attract new customers, and create a positive experience when delivering financial services to customers.
Studies conducted reveal that superapplications are of interest to banks and players in the field of banking services, including fintech companies, in two primary ways. The first aspect involves a comprehensive presence in the e-commerce market and providing integrated services to customers. The second aspect focuses on customer-centric approaches and the establishment of extensive collaboration networks with other industry players.
One of the approaches to creating superapplications globally is to leverage the existing customer base of other actors to provide services. Typically, actors with the largest customer communities can offer the services of other actors through an application in addition to their own services.
Given the wide array of banking applications in Iran, it appears that banks, which are inherently well-organized and precise organizations, face challenges in the realm of applications. Therefore, Iranian banks can harness the potential of superapplications to consolidate the services they offer. Furthermore, it’s worth mentioning that, aside from providing financial services, banks often operate companies in sectors such as insurance or tourism services, which can expand their customer base through the use of superapplications.
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