What is a super app?

Super apps are digital ecosystems of products and services housed under a single application and unified user experience. Core offerings include payments, messaging, ecommerce, and ride-sharing. Super apps often host multiple mini apps, or programs built by third-party developers that add a specific functionality to the larger super app. The number of global super app features stood at a staggering 3.2 million as of October 2021, per Insider Intelligence research.

Over a third of global executives believe it’s “highly likely” that the bulk of financial transactions will take place through a single super app within the next decade, per an October 2020 Economist Intelligence Unit survey. Though the model may seem futuristic, banks must start preparing for its advent today.

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Super apps in banking

The Western financial services market is headed for a major rebundling, and banks that don’t take part could find themselves losing customers. As app fatigue sets in, consumers are primed for multipurpose apps that streamline their financial management tasks. A third of US consumers said they feel overwhelmed by the number of devices and subscriptions to keep track of, per Deloitte. And many see super apps as a salve: The US interested market for super app adoption stands at 173 million people—or 67% of the population, per PYMNTS.

Super apps will intensify the already tough competition among banks for consumer mindshare and share of wallet. Nonbank companies that have already started on the super app route include formidable opponents like Amazon, Walmart, Google, and PayPal. To fight back, banks will have to tailor their super app plays to their asset size. Deep-pocketed mega-banks can launch their own super apps, while small and medium-sized players can plug their services into third-party apps. First movers will have the best shot at drawing users deeper within their ecosystems and beating out the competition.

In this report, Insider Intelligence explains how super apps will transform the digital customer experience, examines the disruptors banks will face when entering the super apps market, and lays out strategies banks can use to navigate the rise of super apps.

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Companies mentioned in this report include: Affirm, Alipay, Amazon, Apple, Bank of America, Blend, Block, Carrefour, Facebook, FIS, Google, Green Dot, Huawei, JP Morgan, Klarna, Meta, Nubank, N26, PayPal, PaySafe, Revolut, Snapchat, TikTok, Walmart, WeChat, and Wells Fargo

Here are some key takeaways from the report:

  • Over a third of global executives believe it’s “highly likely” that the bulk of financial transactions will take place through a single super app within the next decade, per an October 2020 Economist Intelligence Unit survey. 
  • The use of mobile payments through social media shopping jumped by 14% during the pandemic, with 58% of respondents saying they mean to keep these habits even once the pandemic ends. This gives banks an unprecedented opportunity to maximize engagement through super apps.
  • First movers will have the best shot at drawing users deeper within their ecosystems, and the race has already started: Bank of America announced in February that it will combine its disparate mobile, private, prepaid, and other banking apps under a single application.

In full, this report:

  • Defines the super app and explains how it stands to upend the digital customer experience
  • Outlines the competitive landscape banks face on consumer app engagement
  • Examines the financial gains banks stand to reap from adopting the super app model
  • Lays out why banks must adopt the super app model now 
  • Presents the risks banks must negotiate to secure super apps gains
  • Offers strategies for banks of different sizes to carve out a niche in the super apps market 
  • Explores the possibilities for the onward evolution of super apps in financial services