Don’t worry, be appy

Towards the end of 2018, Android users were able to choose among 2.1 million apps. At the same time, Apple’s App Store remained the second-largest app store with almost 2 million available apps. That’s a lot of choices for your members to have. And they are inundated with messaging from app developers’ or brands’ never ending quest to enhance app functionality, features and benefits.

It’s true that there are fintech firms that dominate the slice of the financial services app market. At the time of this writing, the top 5 most downloaded financial apps were Square, Venmo, PayPal, Credit Karma and the IRS respectively.  Big banks like Chase, Wells Fargo and Capital One follow closely behind.

What do these app producers share in common, besides massive market share? They constantly reinvest in their apps and use there apps as engagement platforms.

These Bankrate stats show that the app trend is here and expanding quickly:

• Among smartphone users, nearly two-thirds have at least one financial app.
• 70 percent of respondents said they check their financial institutions mobile app at least once a week; 16 percent say they check it every day.
• 64 percent of millennials and 59 percent for Gen Xers said they have at least one full-service banking app on their phone.
• While only 41 percent for respondents age 55 and up said they have a banking app on their phone, this is quickly increasing.

Financial app usage by your members is going to increase. It’s going to be up to you if they use your app or a competitors’.

Contextual messaging, frictionless experiences, rich content, and other features centered on great experience are hallmarks of the best financial apps. Should your credit union offer anything less, your members (or prospective members) will decide that their time is better spent elsewhere.

Proof: 21% of users now abandon an app after one use.

Investing in app development one way or another, is not an option. It is a requirement.

A lot of money has been made in the app economy, and plenty more will no doubt be made during the next decade. This certainly will be the case for fintech. While apps may come and go, consumer demand will only expand. Fintechs will continue to put pressure on you and they want a piece of your pie. A big piece.

Don’t get too comfortable because you rolled out a new app to your members. This is just the beginning.