The year 2020 was an explosive one for fintech. Between lockdowns that prevented people from getting to a physical bank, forcing them to look for alternatives, and the need for contactless payment options, 2020 was an unexpected boon to fintech apps.
While all verticals saw an increase in installs, fintech apps posted the best year-on-year growth in 2020 at 51 percent, based on Adjust’s Mobile App Trends Report 2021. The growth trend continues as installs for the first half of 2021 registered a 24 percent increase.
In India, the government has proposed significant support to develop, promote and accelerate digital payments, following a sharp growth in online and contactless payments during the lockdown months. In addition, banks and financial institutions in the country are looking at technology and fintech companies to assist them in moving their digital activities forward, either by investing in the development of technology or directly using the apps as service providers.
According to a KPMG report, fintech investments in the country have reached $2.7 billion, listing 2020 as the second-best year for fintech funding for India. At this rate, estimates show that India’s fintech companies have the potential to reach a valuation of $150-160 billion by 2025.
It is easy to attribute these gains to sheer necessity, as people scramble to find new ways to perform basic daily tasks. However, our research finds that much of the growth is likely due in part to the huge adoption rates for trading apps, such as Paytm, Razorpay and Mobikwik. Consumers are beginning to realize the flexibility, connectivity and convenience provided by fintech applications.
Ultimately, this led to an 85 per cent increase in fintech sessions in 2020, compared to 2019, and already up 49 per cent for H1 2021. Sessions grew steadily throughout 2020, with the biggest weeks at the beginning of October (22 per cent above average) and the end of November (24 per cent above average). Another peak took place in the first week of July, which was up 15 per cent.
Fintech seems to have cracked the code on keeping users engaged for the long haul. With the growth in mobile applications, more apps will emerge and compete for users' attention. To be competitive, developers have to be smart, data-driven and should place focus on user experience (UX). By looking closely into the data, other apps can learn a lot from fintech’s 2020 growth.
