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How superapps are changing digital banking FINANCIAL TECHNOLOGY
Safdar Khan Division President, Southeast Asia, Mastercard Today, superapps are challenging existing mobile and banking players by being a one-stop solution for all consumer needs and demands, including payments. For a long time, superapps had limited options and control when integrating payments. However, with growing adoption of open banking and technologies that enabled their application, superapps are now exploring how to better embed financing options into non-traditional channels. Superapps are also bringing new opportunities to traditional and modern financial players. For banks, including digital banks, partnerships with superapps allows them to access remote consumers or consumer segments they are unable to serve. These partnerships also allow banks to experiment with innovative digital offerings without the up-front investment and any associated risks. Banks can also use these technology firms as a pool of specialised skills that they would find challenging and expensive to assemble on their own.
Representative Analyst, Maybank Investment Banking Group Over 6 in 10 Southeast Asians are unbanked or under-banked, according to a report by Bain, and superapps will play a big role in that. Superapps are multi-vertical apps anchored by a strong mobile wallet, with more mature superapps transforming into platforms-as-a-service (PaaS) players by rolling out mini-app features for other developers to build apps within their eco-system. The wallet is often mandatory within their eco-system as the payment gateway, allowing them to earn commissions on economic activity that occur on their platform. Superapps are just one type of player in the mobile money space. Others include telco-led mobile wallets (e.g. LinkAja, Dash, mPay), digital native mobile wallets (e.g. FavePay, PayPal) and bank-led mobile wallets (e.g. Paylah!, K+). Early mobile money offerings led by telcos tried to emulate M-PESA as an SMS-based wallet, but with smartphones, most mobile money offerings now have moved to an app-centric model.
JungKiu Choi Managing Director & Partner, Boston Consulting Group SuperApp is a platform that aggregate all services and offerings consumers need in one single app. It’s designed to win the battle for app usage and user daily screentime when mobile users suffer from app fatigue and crave convenience at the same time. SuperApps have unfettered access to massive consumers and data, as well as the economic opportunities that emerge from that access. SuperApps and the ‘SuperApp’ concept are creating an impact to the digital banking landscape in many ways. Some SuperApps have built their own digital banking arm to better support its ecosystem strategy and most have proven successful. A number of challenger banks who started with single/small suite banking offerings are also harbouring the ambition to become a SuperApp, such as Tinkoff, Revolut, and Nubank. Traditional banks are responding to the SuperApp trend through ‘partnership’ or ‘self-build’ models, depending on their size and assets they possess.
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Singapore’s DBS dives into the metaverse
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BS Bank has announced plans to create its own interactive metaverse experience under the name DBS BetterWorld. Singapore’s largest bank by assets has teamed up with The Sandbox, a decentralised gaming virtual world, for its metaverse services. Under this partnership, DBS acquired a 3x3 plot of “LAND”–the unit used for virtual real estate in The Sandbox metaverse–on which it will develop DBS BetterWorld. DBS said that it aims to use the metaverse as an additional engagement platform for its customers to learn more about ESG concerns. In particular, the bank said that it will use the platform to
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“profile social entrepreneurs in Asia who have been driving positive impact through innovative business models.” The bank further plans to connect DBS BetterWorld with LiveBetter, the bank’s digital platform aimed for encouraging more eco-conscious living amongst its customers. LiveBetter offers ecofriendly tips, channels for easy donation to sustainability causes, and investment opportunities in sustainability-themed funds, amongst other services. As for its carbon footprint from operating in the metaverse, DBS said that it plans to purchase carbon offsets in order to ensure that DBS BetterWorld will be carbon neutral.
Photo by Nicolas Lannuzel
