A claim by a former Barclays CEO that the banking industry may be heading for an “Uber moment”, is being backed up by a new report.
Figures from the App Annie report show that finance apps account for around 3% of worldwide app downloads via iTunes, and 1% in Google Play. While it doesn’t sound like much initially, with 15 billion apps downloaded in the Apple store this year, that means 450 million finance apps were downloaded.
Finance apps are also a lot more “sticky” than other app categories – you don’t keep downloading them.
There’s no yearly projection for Google Play downloads, but it had 50% more downloads overall than Apple in the first quarter.
Games, the most downloaded category according to Statista, account for 14.8% of downloads on Android and 22.2% on ios, but have much higher churn rates once completed or people are bored and move to the next one.
The most important aspect of the App Annie data is the trendline, with downloads for finance apps doubling in the past two years.
These companies all deal in areas highlighted by a recent KPMG report which says $27 billion in banking industry revenue is currently at risk of disruption.
“The technology is now in place to substantially transform financial services,” the report reads, citing cheaper technology, widespread mobile penetration and real time payments. Small business and personal loans make up the bulk of the revenue under threat, followed by payments infrastructure.
Transferwise and WeSwap operate in the payments area, while Jiedaibao operates in lending.
All in all the uptake of fintech apps is rapidly increasing and the culprits appear to be in areas the banks are vulnerable.
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