AUSTIN, Texas–The market for mobile apps is getting saturated, and as a result growth has slowed.
According to Malauzai Software, it analyzed data from banks and credit unions with assets ranging from $50 million to $5 billion to identify which offer consumer and business mobile.
Key research findings include:
- The market is saturated, new app growth has slowed to 8%
- Business mobile has failed to see the interest or the growth that was expected
- P2P payments are growing, but overall usage and consumer adoption of bank-centric P2P is low
- Debit card controls have gained much popularity, providing a high level of market differentiation
- Wearables are gaining momentum, yet most financial institutions do not have an Apple Watch app
- Standalone apps are basically ancient history, however, there are still a few standalone RDC and other random apps for features such as debit card management
- Five primary vendors supply most of the apps; but the market is fragmented with more than 60 suppliers building apps for financial institutions
- Vendor Market Churn is high – about 15%– as financial institutions are seeking differentiation by switching vendors
“Our findings this year were a little surprising,” said Robb Gaynor, chief product office for Malauzai. “The market is saturated, everybody has an app. Most financial institutions with $100 million in assets or less have no mobile banking app. We also found that businesses do not seem to care about having a mobile app, the growth in business mobile is very slow. And what surprised me the most was that finally banks and credit unions are launching debit card controls inside mobile banking. It is now being used as a feature to differentiate their offerings from other financial institutions. Product differentiation is key; delivering an array of unique features, design excellence and an incredible user experience.”
For additional details, read the full Monkey Memo here.