Super apps: a potential disruptor for modern banking
A report by KPMG postulated that conglomerated service apps or ‘super apps’ could be one of the most disruptive influences in the finance sector
A report by KPMG postulated that conglomerated service apps or ‘super apps’ could be one of the most disruptive influences in the finance sector
A report by KPMG postulated that conglomerated service apps or ‘super apps’ could be one of the most disruptive influences in the finance sector.
Although less common in Western countries, consumers in the Asian market have quickly adapted to using a single portal to access a suite of popular services, including messaging, social media, e-commerce, ride-hailing and more.
The integration of these functions is such, states KPMG, that “it is not unusual for a WeChat user in China to set up a date with a friend via instant messaging, make dinner reservations, book movie tickets, order a taxi and pay for every transaction along the way, all using one single app.”
A threat to banks
Despite the undoubted convenience for service users, there are, in fact, distinct disadvantages presented by super apps to banks and the finance sector. Namely:
Although it concedes that some may view the development of super apps to be primarily a China-based issue, KPMG emphasises that the same market conditions which led to their development in Asia could easily impact the West too:
“In part, the shift towards more all-encompassing apps is being driven by competition. Companies in almost every industry that do not want to become disintermediated by a super app are thinking about how they can become the West’s answer to WeChat and Alipay.”
Preparing for the change
Viewing the global transition to super apps to be a question of ‘when’ and not ‘if’, KPMG recommends that bank executives focus on four core areas of development: