Affle’s MAAS, a unified mobile advertising platform has released a Fintech Industry report titled ‘Decrypting the fintech gold rush in the new normal’ in association with Adjust. It covers the scope of the overall Fintech industry in India and Southeast Asia (2022 & beyond) with key insights on developing user acquisition campaigns for the Fintech app marketers.
- Projected Fintech market at $150-160 Billion (by 2025) for India and $1 Trillion (by 2025) for Southeast Asia
- India’s Fintech app install growth was noteworthy, with 71% in 2020 and another 32% in 2021
- India’s UPI banking interface recorded transactions worth $68 billion in Q2 2021
- India has the youngest user base in the region via both Google Play and App store, at 28 years for female users and 24 years for male users, approximately
- Millennials and Gen Z are thinking beyond what traditional financial institutions can offer with gaining traction for trading, cryptocurrency, NFTs and mutual funds
India and Southeast Asia have a low penetration of financial services beyond their urban population. This offers significant untapped opportunities for Fintech to expand its reach to Tier II, III markets & beyond, especially when the smartphone penetration is high across such markets. This also provides an enhanced scope for Fintech to appeal to the needs of tech-savvy millennial and Gen Z populations who are craving for easier financial management across all financial categories – insurance, credit disbursals, buying/selling/ investing in financial assets, etc.
The eagerness to simplify and check off financial to-do lists in a few clicks has primed the Fintech industry to offer innovative new age digital solutions. We are also witnessing a surge in trading, cryptocurrency, non-fungible tokens (NFTs) and mutual funds. Moreover, governments in both regions are actively advocating for increased financial inclusion across all demographics. In India, Fintech is currently the world’s third largest ecosystem after the US and China.
Speaking about the findings of the report, Vipul Kedia, Chief Data & Platforms Officer of Affle and Head of Business (India) at MAAS says, “Just a few years back, carrying cash in our wallets was a regular practice. Today, cashless transactions dominate our purchases. For the younger generations, millennials and Gen Z, financial management is gradually becoming synonymous to Fintech apps.
Youngsters are demanding ease and convenience to manage their finances and are quite eager to break away from traditional models. The rising demand for easy finance management is boosting the industry in terms of innovation and competitive offerings. This year is set to be quite interesting for Fintech subverticals like alternative lending, digital asset management and neobanks in how they appeal to hopeful users and establish themselves as mainstream players in the sector.”
Other key highlights:
- App installs up by 41% in INSEA (2021 vs. 2020)
- Indians are clocking in the most minutes in-app per session, averaging at 17.38 minutes
- Cryptocurrency apps make up for 12% of overall Fintech app sessions, indicating higher user engagement for the new-age investment model
- Neobanking apps in southeast Asia recorded about 3X higher Daily Active Users (DAU) and approximately 4X higher Monthly Active Users (MAU) growth as compared to traditional banking apps in 2021