Go from app to super app with financial data (VB On-Demand)
Presented by Envestnet | Yodlee
Super Apps provide consumers with a single portal to a range of services and offer tremendous opportunities for all financial institutions. In this VB Live event, learn how they work, explore their possibilities, see why they’re only as great as the data they use, and more.
Watch on demand here.
On the consumer side, super apps, or digital gateways, are a comprehensive ecosystem of services and offerings that have been integrated into a single platform – a one-stop shop for our digital needs. On the enterprise side, super apps are a huge opportunity for all financial institutions. They can leverage APIs, third-party integrations, and open data architecture in an ecosystem that provides a more complete financial view and improves money movement and customer experiences.
“Banks and fintech have a great opportunity to figure out how to work together to serve both the business community and end users,” says Lloyd Fernandes, product at Envestnet Yodlee. “Consumers flock to them because they are multi-faceted platforms that provide a highly personalized experience on any device.”
For example, Google is basically a super app. In one place, consumers can search for restaurant ideas, find reviews, review menus, make reservations, get directions, and more, with all of the integrated services — from Yelp to Open Table to the Google’s ecosystem of apps – working together.
Most U.S.-based tech giants, like Facebook/Meta, Apple, Amazon, and Netflix, have ecosystems that are poised to become super apps, Fernandes says, but consumer adoption in the U.S. is lagging behind. At the same time, WeChat, Alibaba and Alipay in China have also come under regulatory scrutiny. Antitrust regulations in the United States and around the world are poised to crack down on corporate monopolies or oligopolies that threaten a healthy competitive environment by leaving consumers with very little choice. Given the current business, regulatory and economic environment, providing a one-stop-shop for our digital experiences needs to be rethought.
Why fintech should prepare for the super app trend
Financial institutions and technology service companies collect and thrive on massive user data. When used diligently to meet a consumer’s changing financial needs, this data can improve the consumer experience on all fronts. Whether researching investment opportunities, making credit decisions, selecting a mortgage lender, and more, using the financial data already available in the ecosystem quadruples the business opportunities for investors. financial institutions and technology services. However, with this great opportunity comes great responsibility as well.
“You don’t want one entity to be the superpower,” Fernandes says. “Democratizing this data is a healthy way for that consumer or business to leverage their financial relationships.”
When super apps wonderfully aggregate primary financial data with user identity, they have a much better chance of meeting multiple financial needs – for example, applying for a small business loan from a financial institution, a card personal credit with another, consolidating air miles into dollars or vice versa, or even optimizing various accounts at a major institution. This aggregated data directly from different financial institutions using the Open Banking API or other reliable methods provides accurate and timely financial information about the customer. That’s the real power of a super app: unbiased options for consumers while woven together with the security and reliability of a standard offering.
“It’s not just about trusting a single source of data, but using a triangulated method to get the big picture,” says Fernandes. “There are a lot of good things that can come out of this, just by opening up banking and financial institutions and providing the same precise method of sharing some of this data with permission from consumers and businesses.”
The goal is to open the ecosystem to financial institutions and all related service providers, large and small. It’s not just about profits, which come from providing more services. Instead, that need is really to provide fair financial services for all. This does not only apply to leading financial providers, but to all small and large technology and financial services companies.
Be part of the awesome apps ecosystem
There are several ways to prepare to take advantage of the super app trend as it grows. On the tech side, super apps are a relatively new idea, ushered in by the digital acceleration of recent years. To participate, establishments must ensure that they have a sufficiently modern architecture.
“Substantial investments are needed to enable such a financial infrastructure,” says Fernandes. “Finance organizations need to think not about what they are doing today, but about what they should be doing to serve tomorrow.”
In particular, organizations need to ensure that they are establishing the best API standards and capabilities and are not building in silos. Organizations must also recognize that while creating a standard framework for open data architectures and APIs will help them participate in this new digital ecosystem, it is never a one-time job.
“We need to continually re-evaluate the range of tools and processes that make the most sense,” says Fernandes.
An example is a generational piece – does your company provide the right ways to communicate with different users? Few young consumers will be interested in logging into an app or website every time they need to communicate with their bank. Businesses need to evolve as preferred methods develop.
On the business side, leadership plays the most important role in setting up a business to succeed in the world of super apps. “Whether it’s making a profit for your organization, improving the lives of the consumer, or fostering goodwill in general, leaders need to think beyond their organization and their personal ambitions,” he says. .
To learn more about the growing trend of super apps in the US, the opportunities that exist for financial services companies and how they can fit in, don’t miss this VB Live event!
Watch on demand here and find out:
- The potential of super apps in the United States
- How to use data to power your awesome app
- How to Meet Customer Expectations for Digital Self-Service
- Ways to Leverage APIs and Open Data Architecture
- Opportunities to launch or partner in an ecosystem of great apps
- Sam Johnson, CMO, Empire Ecommerce
- Ariam slum, VP Product, FinGoal
- Dr. Anthony RhemPhD, CEO/Principal Consultant, AJ Rhem & Associates, Inc.
- Rachel Kasermoderator, technology editor, VentureBeat