Blog Trends and growth projections for the IN...

Trends and growth projections for the INSEA fintech app ecosystem in 2022

Micah Motta, Senior Content Writer, Adjust, May 24, 2022.

A fintech revolution is sweeping across India and Southeast Asia (INSEA). In fact, India currently has the highest fintech adoption rate in the world at 87%. Compared to the global average of 64%, this is quite a feat. The region’s increased dependence on cashless transactions and its rapid adoption of digital finance have positioned it as a competitive fintech app market. We’ve extracted key insights from recent Adjust data on the area that will benefit app marketers looking to make a mark in INSEA.

Fintech app adoption explodes

With the pandemic causing mass lockdowns in a heavily cash-reliant region, many INSEA mobile users pivoted to fintech apps for payments and other finance-related activities.

Noteworthy INSEA fintech app statistics

Fintech app installs grew by 44% from 2019 to 2020 and 41% from 2020 to 2021.
Fintech app sessions grew 136% from 2019 to 2020 and 186% from 2020 to 2021.

Adjust data reveals a significant jump in installs from the end of March 2020 until the end of April 2020, which was the precise time covid restrictions and social distancing rules came into effect. However, the install rate continued to grow at an astonishing rate through 2021, suggesting wide fintech app adoption.

And by looking at sessions data, it’s apparent there was also a major increase in user activity during the pandemic. Fintech app sessions grew steadily through 2021, indicating an increasingly engaged user base in the region.

Takeaway 1: Study user behavior

With more fintech app users than ever before, the INSEA population has come to utilize fintech apps in their everyday lives. However, as the number of users has grown, so has the competition. Therefore, it’s essential app marketers analyze user behavior to know how to increase brand loyalty.

For instance, you can look at time-based segmentation to see which day of the week users are most engaged to know the best time for communication. Check out our article How to successfully use behavioral segmentation for more details

Wealth management apps soar

The average user age of fintech apps in all INSEA markets is between 20 and 40, with most countries on the younger side. Today, many millennials and Gen Z in India and Southeast Asia seek a mobile-first approach to wealth management.

But, what types of fintech apps interest them the most?

In 2021, payment apps were the most installed fintech subvertical at 81%, followed by banking at 10%, stock trading at 6%, and cryptocurrency at 3%. While payment apps remained in the first spot for sessions at 53%, stock trading notably came in second at 27%, with crypto at 12% and banking at 8%.

Takeaway 2: Consider your target audience

When introducing your app to a country within the INSEA region, conduct market research to determine your target audience’s demographic by looking at factors like location, age range, gender, language, etc. Read How to define and reach your mobile app target audience for a complete list of factors you’ll need to consider to identify your target audience.

Your market research should also identify what pain points your competitors aren’t addressing so that you can discover differentiator opportunities for your app. For example, Zenda, a UAE-based fintech app for school fees, recently raised $9.4 million in seed round funding for its pay-now, pay-later model for an expansion into India. The app addresses the lack of convenience and inflexibility typically experienced in paying school fees in India.

Investment in INSEA fintech rises

In Southeast Asia, fintech funding hit $3.5 billion in the first nine months of 2021, while India reached $8 billion by the end of that same year. Investors attribute this growth to the rapid adoption of digital payments in recent years.

So, how are fintech companies entering the INSEA region where previously little was known about the industry? Believe it or not, many are working with governments.

Takeaway 3: Partner with government initiatives

Given that a vast majority of the INSEA population remains unbanked and financially underserved, governments are stepping in to provide digital banking solutions for greater financial inclusion. Several fintech apps have worked in tandem with government initiatives, which has proven mutually beneficial.

Gojeck, an Indonesian ride and delivery services platform, worked with Indonesia’s Ministry of Communication and Information Technology to improve the country’s digital literacy. Gojeck launched a public awareness campaign on online fraud and cybersecurity best practices using in-app games.

Becoming a trusted source of digital information in INSEA can serve your app well. First, your app will likely earn a trustworthy reputation thanks to its participation in a government initiative. Second, more users will become familiar with your app in terms of branding and how the app works.

Ready to enter the INSEA fintech arena? Check out the report Exploring INSEA’s mobile app landscape for an insightful look into the region’s remarkable developments, including key mobile marketing metrics and expert advice.