Lead into Lifestyle Banking with Super Apps

[G-shankar]

Banks across the world are reinventing their business models to capitalise on this shift and are working towards a single goal - a super app that supports the entire customer journey and offers its customers products and services across industries on a single platform. By building strategic partnerships with service providers, banks can provide their services and products on the app too, making it a one-stop shop for its users. There is a growing demand for convenience and the capability of banks to craft instant, customised as well as frictionless customer experiences has come to determine their success in the digital economy. “A BCG Survey found, 34% increase in mobile banking usage and 12% reduction in branch-based banking in year 2020

Market study says, Super-apps generated $51 billion in revenue in 2020, with market size expected to grow by nearly 163 percent by 2025 and hit $134 billion in revenue

Establishing an innovative, millennial-targeting lifestyle banking

“Through super apps, banks will be able to rethink their business model and build a marketplace that is aligned to their corporate and retail consumer business strategies”.

Super-apps offer the benefit of a one-stop platform for multiple tasks that users want to perform online and on their smart phones—from shopping and banking to attending business meetings, watching movies, booking transportation and more. By bringing together a range of experiences, services and functions on a single platform that customers already feel confident using, super-apps provide seamless experiences that keep users engaged

Globally there are dominant super apps such as WeChat, Grab, Gojek, PayTM and in India some of the major banks have successfully positioned itself in the digital world offering lifestyle banking with apps such as SBI YONO App, Union Bank Sambhav, Shriram Finance, Bajaj Finance and so on.

Digital Strategy – A Need of the hour for retaining customer loyalty

Availability of high-speed internet everywhere and a mobile-first preference among users foster the mass adoption of super apps even more”.

The foundational piece to this puzzle is user experience and interconnectedness. However, the lack of a comprehensive digital infrastructure also prevents innovations in the digital banking space.

A host of factors and trends are driving banking towards technology led banking. In order to prepare and exploit opportunities presented, banks will have to review near-term and long-term business goals and determine the optimal digital banking strategy

Journey to Super App World for Banks 

Possessing boundless customer data and knowing what it means are two very different things. Super apps will enable banks to improve their data management and analytics capabilities. It will efficiently utilize customer data and share it across various service areas and lines of business to develop a better view of the audience

Open banking is a driving force of innovation in the banking industry.

Open banking is the core technology that allows these apps to draw financial data from multiple sources and design products and services that speak to the needs and wants of the end-user.  Super-apps can also use open banking data coupled with technologies such as artificial intelligence (AI) and machine learning (ML) to make data-driven decisions and develop customer-focused products across the ecosystem.

Super apps will enable a rich flow of information between entities using open data architecture, APIs for Third-Party Integrations, and enhanced CX-based offerings. The omnichannel platform will allow banks to understand each user thoroughly and therefore meet their expectations for ease, convenience, and speed across numerous sectors and industries

Approach to Innovation - Minimum Viable Product with HPE

Achieving agility by modernizing applications begins by gaining an understanding of what the right mix of suitable hybrid cloud destinations is and determining what migration strategy is needed for each application. 

6R  Comprehensive Application modernization strategy combined with HPE Greenlake Edge to Cloud platform helps banks into leap frog into lifestyle banking with proven approach starting from experiance design, developing architecture, proof of concepts, planning, cloud build out and launching MVP.

HPE Strategy helps

•Re-imagine the user experience in ways that are consumer-centered & market-relevant 

•Design optimal cloud infrastructure for security, scalability, resiliency, and innovation 

•Build out fully automated core infrastructure as a foundation for minimum viable product (MVP) build and future state

•Drive time to market and rapidly respond to change using an agile build of MVP features

References

• HPE GreenLake for financial services
• Hybrid and multi-cloud services from HPE GreenLake
• HPE Application Modernization and Migration Design and Plan service
• Financial Services Networking Solutions
• HPE Ezmeral Runtime Enterprise

Conclusion

Super app is certainly set to alleviate financial institutions from transaction processing, compiling data, building risk profiles and all the other traditional banking functions by automation and will allow banks to focus on building customer loyalty and retention.

As the saying goes, “With great power comes great responsibility.” Open banking and the genesis of the super app open the data floodgates and those who have access to it need to treat it with care. Financial Institutions willing to reimagine their business model and building an ecosystem of their own will need to Establish a vision to become part of consumer lifestyle ecosystem, Embrace open data architecture and application programming interfaces (APIs) , build data management capabilities like analytics algorithms and machine learning to unlock the value of their own data and third-party data.

Customer Centricity is key for survival in millennial era and the need for Open Ecosystem, Comprehensive data strategy, Right technology Partnership & Hybrid Operating model is key to enable Innovation on Demand & be securely successfull

[Sunitha_Mod]

Hello @G-shankar, 

Thank you for sharing the information!