Super-apps, an all-encompassing platform that offers the likes of messaging, social media, ecommerce, transport booking and even financial services are taking the Eastern world by storm. Described as versatile, efficient and multifunctional, they are making their user’s lives easier and more efficient.
But why exactly haven’t they taken off in the Western world? Some experts are pointing out that an understanding of diverse markets across the world is essential before any adopts new technologies. With this in mind, super-apps can offer transformative potential for fintech companies, it just requires a little insight into how to make a good ROI.
Understanding super-apps
Having first been launched in China and Southeast Asia, super-apps like WeChat have become popular all over the Eastern realm. Offering a whole host of services, they enable effortless transactions from dinner reservations to loan applications. But as well as being favoured by the individuals that use them, super-apps are also being welcomed by the businesses they provide opportunities for. Namely, those in fintech.
Why super-apps aren’t universal
Despite Elon Musk attempting to turn Twitter into a Western version of WeChat, it can’t be denied that these types of apps just don’t have the appeal in Western regions. This has led many to question why the same apps that are so popular in Asia just haven’t made the same waves. The answer lies in regulatory, cultural and technological differences.
For starters in the Western world, users typically opt for specialised apps that offer distinct services and currently have little interest in an all-in-one app that is so popular in China. Data-sharing regulations also can’t be ignored and Europe’s GDPR poses unique challenges to the integration of super-apps in Western markets.
In addition to this, there are currently thousands of specialist apps in the Western market which would make it tough for any new app to compete – especially with the concern and criticism surrounding super-apps. Experts have also warned that the technology infrastructure just isn’t as unified as in China which poses further challenges.
Also read: Fall 2023: Unveiling the Fintech Booms that are Changing the Financial Landscape.
Finally, it can’t be denied that Westerners are typically more concerned about data privacy, which can make the idea of super-apps daunting and even a little intrusive. Despite these challenges, the potential for super-apps is clear, particularly in the fintech sector.
Super-apps in the fintech domain: what could the future look like?
Super-apps offer an all-in-one platform for financial management, socalising, shopping and they still attract attention despite the challenges outlined above. In areas where super-apps have succeeded, they act as accelerators too, providing connection between various sectors and driving innovation.
Just imagine if you could reduce the time it takes to apply for a loan or even complete the application in the time it takes to order food. Transformation like this isn’t just a dream, super-apps make it reality. For this reason, the appeal of super-apps is growing, even in the Western world thanks to their user-centric design. What’s more, for fintech this presents opportunities for customer engagement, personalised services and overall enhanced ROI.
Strategies for Western Market Integration
To successfully break into the Western super-app market, fintechs need to prioritise strategic integration, consistent user engagement and data-drive customisation, all while maintaining quality and regulatory compliance. Understanding financial trends and customer behaviour is essential and will help fintech to make better-informed decisions and better serve their customers. Indeed, gaining constant user feedback to further enhance your offerings can not only help your fintech evolve but also maintain a strong financial position.
