Technology is Here to Stay
- Financial apps are constantly looking for ways to deepen their engagement with their users.
- On today’s Deep Dive, Tearsheet’s Sara Toth Stub discusses how financial apps are becoming stickier.
So much time and energy is spent acquiring new banking, payments, and investing customers. But while financial apps have industry-high usage numbers in terms of how much time users spend on them, user lifecycles are short. A recent study showed that less than 5 percent of people who download a financial app are still using it 90 days later.
Tearsheet’s Sara Toth Stub wrote a story on what top fintech and banking firms are doing to increase engagement on their apps. From focusing on an apps feed, to increasing content production, to partnering with brands their customers love, firms are finding a way to keep their users around.
Sara Toth Stub is my guest today for a deep dive podcast to discuss how top fintech and banking apps are finding success in deepening their engagement and retention of their customers.
The need for increased engagement
Although various studies say that financial apps are very popular with users, competition has increased a lot. There are a lot of apps out there. And user attention drops off. Of people who download financial apps, only 3.4 percent are still using them on a regular basis after three months. Firms are struggling acquiring and maintaining their users. Costs to acquire and keep customers have also increased. They’re spending more money.
It starts with personalization
I spoke with a variety of firms and analysts for this piece and one way banks and fintechs keep relevant for their users is to personalize them in terms of what type of information, updates and advice they’re giving. They want users to feel their financial apps are relevant to their lives and don’t want to miss out on them.
These apps know certain things about you — your bank account, transactions, and where you’re spending and investing your money.
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