Fintech Report with Adjust MAAS Platform

Affle’s MAAS, a unified mobile advertising platform, has released a Fintech report titled ‘Decrypting the fintech gold rush in the new normal’ in association with Adjust. It covers the scope of the overall Fintech industry in India and Southeast Asia (2022 & beyond) with key insights on developing user acquisition campaigns for the Fintech app marketers.

India and Southeast Asia have a low penetration of financial services beyond their urban population. This offers significant untapped opportunities for Fintech to expand its reach to Tier II, III markets & beyond, especially when the smartphone penetration is high across such markets. This also provides an enhanced scope for Fintech to appeal to the needs of tech-savvy millennial and Gen Z populations who are craving for easier financial management across all financial categories – insurance, credit disbursals, buying/selling/ investing in financial assets, etc.

The eagerness to simplify and check off financial to-do lists in a few clicks has primed the Fintech industry to offer innovative new age digital solutions. We are also witnessing a surge in trading, cryptocurrency, non-fungible tokens (NFTs) and mutual funds. Moreover, governments in both regions are actively advocating for increased financial inclusion across all demographics. In India, Fintech is currently the world’s third largest ecosystem after the US and China.

Speaking about the findings of the report, Vipul Kedia, Chief Data & Platforms Officer of Affle and Head of Business (India) at MAAS, said, “Just a few years back, carrying cash in our wallets was a regular practice. Today, cashless transactions dominate our purchases. For the younger generations, millennials and Gen Z,  financial management is gradually becoming synonymous to Fintech apps. Youngsters are demanding ease and convenience to manage their finances and are quite eager to break away from traditional models. The rising demand for easy finance management is boosting the industry in terms of innovation and competitive offerings. This year is set to be quite interesting for Fintech subverticals like alternative lending, digital asset management and neobanks in how they appeal to hopeful users and establish themselves as mainstream players in the sector.”

Speaking about the findings of the report, Ajit Pawar, Director Of Partnerships (APAC) at Adjust, elaborated, “With the new normal becoming simply the normal, the focus of the financial services industry will be to create more meaningful digital experiences that improve the financial health and well-being of the customers they’re trying to reach with features that appeal to this group – millennials or the financially underserved alike. The fintechs that continuously innovate products, understand local needs and offer better user experiences will see the most success. Not to forget, privacy-enhancing solutions will be key in building trust with their customers.”

Other key highlights:

•  App installs up by 41% in INSEA (2021 vs. 2020)
•  Indians are clocking in the most minutes in-app per session, averaging at 17.38 minutes
• Cryptocurrency apps make up for 12% of overall Fintech app sessions, indicating higher user engagement for the new-age investment model
• Neobanking apps in southeast Asia recorded about 3X higher Daily Active Users (DAU) and approximately 4X higher Monthly Active Users (MAU) growth as compared to traditional banking apps in 2021

In 2020, the COVID-19 pandemic accelerated rapid digitalization across business models, channels and touchpoints. The two critical pillars of the economy – Banking and Finance, have witnessed a major uptick in digital offerings and adoption. From 2019 to 2020, the overall rate of app installs jumped by 44%. India witnessed a noteworthy surge in app installs with 71% in 2020 and another 32% in 2021. Whereas, in 2020 Philippines and Vietnam witnessed an increase in app installs by 262% and 137% respectively. The top players in 2021 were Singapore at 152% and Malaysia at 106%. Furthermore, at the country level, app sessions grew massively where India’s app session grew by 190% while Vietnam managed 191%. Indonesia, the Philippines and Thailand also saw sizable upticks at 170%, 132%, and 39%, respectively.

The ongoing Fintech evolution is helping educate and spread awareness among the general public, with a continuous growing market opportunity for the industry. The community of app marketers can leverage this situation to reach out to Tier II and III markets with a diversified channel approach and foster brand loyalty, video ads for orientation of Fintech apps, vernacularisation of messages and promote influencer and social marketing. The upcoming years will challenge Fintech brands to target the right audience for the right product, while keeping User Acquisition (UA) costs low and establishing a high Lifetime Value (LTV) user base.