Skip to content
CCG Insights

Research Snapshot

  • Research Snapshot

Fintech App Downloads Don’t Equal Engagement

Fintech App Downloads Don’t Equal Engagement

Fintech App Downloads Don’t Equal Engagement

November 10, 2021

By: Kate Drew

Fintech Apps Downloaded vs. Usage

Fintech app downloads don’t equal engagement. We’ve long known that the fintech industry’s tendency to measure success in users or downloads is a bit flawed, because it doesn’t speak to activity. And now, new data from Plaid’s The Fintech Effect sheds some real light on the gap here. Specifically, while in the past year or so fintech app downloads have skyrocketed, with 54% of respondents to Plaid’s survey claiming to have three or more fintech apps on their phone, 60% are using only two apps or fewer daily. This reinforces a commonly held assumption that many users will download apps but fail to actively engage with them, creating not only less-than-profitable relationships but also cost centers for the business on the other side. 

For the banking industry, this might feel like a win. It shouldn’t. The study defines fintech as “any digital service that a consumer engages with in order to manage their money, including online banking, payments, investing, savings, budgeting, borrowing, and goal-setting.” That means banking apps are included in the mix here, and there is no assurance that they rank favorably on the list for user engagement. In fact, this data should be worrying to traditional financial institutions (FIs), because it means that customers are downloading more options but using just a few, and therefore, these FIs are competing head-to-head with tech-savvy fintech startups for precious screen time.   

The major issue for traditional institutions here is that fintech startups are designed for engagement. They have a fierce commitment to user research, conducting A/B testing on even the most granular of choices. As such, it’s likely that, while not every one of them is going to come out on top, (creating serious competition within their own ranks), they aren’t likely to have too much trouble pulling users away from the run-of-the-mill mobile banking app, either. That’s why differentiation is key. 

As we discussed last week, these providers are putting the customer back at the heart of the value proposition and pushing banks to do the same, especially as the correlation between engagement and satisfaction is growing clear. Over time, bank execs are going to have to get comfortable with the idea that a well-designed user experience is an important ingredient to success. It’s hard to stress this enough — the notion that retail banking has become commoditized is not an excuse. Things are changing. The question is, are we going to come out swinging or not? 


Subscribe to CCG Insights

You Might Like These, Too

Mobile Banking Boosts Satisfaction Among Younger Users

Mobile Banking Boosts Satisfaction Among Younger Users

Payment Hub Strategies Still Have Room To Run

Fortnite, One-Shot to Understanding GenZ and Banking

Fortnite, One-Shot to Understanding GenZ and Banking

Will FIs Participate in the Small Business Lending Surge?

NJ Warns of Mortgage Lending Scam

Leaders in Bank Consulting

About CCG Catalyst
Latest Insights
CCG

PHOENIX • NEW YORK • LONDON • SINGAPORE

Phone: +1-480-744-2240  • Contact Us

© 2023 CCG CATALYST CONSULTING. Privacy Policy & Terms of Service.
Request a Call Back
Linkedin Twitter
Subscribe
to our Insights
Subscribe
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
BANK
FINTECH
FUSION
  • About
  • Services
  • Insights
  • Fintech
  • Research
  • Team
  • Contact
  • Press
  • Careers
  • Events
  • RFI / RFP
  • Terms
  • Privacy
Linkedin Twitter Search
Subscribe for Insights

CCG INSIGHTS FOR BANKS, FINTECHS, AND CREDIT UNIONS

The Fed, Real-Time Payments, Alexa and Apple P2P, Part of Payment Revolution
  • Weekly digest of what's new
  • New research snapshots
  • Exclusive access to banking and fintech research
  • Industry news
  • Invitations to webinars and webcasts