The Value of Mobile Services for Financial Technology Companies
In the rapidly evolving world of fintech, neobanks like N26, Revolut, and Klarna are leading the charge in expanding into the mobile market. Leveraging the mobile-first fintech revolution, these neobanks are enhancing their mobile apps with advanced features, targeting inclusive financial services, and building ecosystems that could naturally extend into mobile plan offerings.
A key strategy for these neobanks is a mobile-first and user-centric approach. Prioritizing mobile banking as the core delivery channel, they develop user-friendly apps with advanced security and seamless user experience. The mobile banking segment drives the highest growth in neobanking owing to the widespread smartphone adoption and demand for convenience.
By adopting open banking and API ecosystems, neobanks can offer personalized, real-time financial services and embed additional features in their mobile apps, including mobile plans and bundled services tailored to user needs. This approach allows for the integration of various offers such as insurance, car rental bookings, electricity tariffs, and internet offers.
Many neobanks are targeting underserved or previously excluded populations, such as informal merchants or gig economy workers, by simplifying digital onboarding and offering low-cost, mobile-native financial and lending products. This expands their user base significantly, especially in emerging markets.
Beyond banking, neobanks like Klarna are integrating services such as Buy Now Pay Later (BNPL), insurance, salary advances, and potentially mobile plans, creating a super-app ecosystem that retains users within their platform. While specific details on N26, Revolut, and Klarna offering mobile plans directly are limited, the overall trend among neobanks is to bundle financial services with complementary offerings via mobile apps to increase user engagement and revenue streams.
The integration of law enforcement-related services, such as identification procedures and registering with the local registry office, in super apps is a possibility in the future. Eastern European countries are already further along in providing law enforcement-related services by private providers. Neobanks believe that their digitally savvy customers will be more likely to accept such offers than in the past.
The question of who will bring the super app to the European market is being discussed. It is unlikely that Europe, or specifically Germany, will get a WeChat-like super app, but an app integrating various contracts and neobank functions is more realistic. The initial costs for neobanks to offer mobile plans are minimal, leaving aside the initial technical implementation and marketing measures.
Klarna, a Swedish fintech, is already offering a mobile plan with unlimited data, calls, and SMS at a cost of $40 per month. The mobile plan can be signed through their app with one click. Offering mobile plans can help neobanks win new customers and retain existing ones.
Ulrich Hoyer, partner of the consulting firm Zeb, states that customers of neobanks like to do as much as possible from one hub. The integration of various services in super apps is seen as a way to meet this demand and create a more seamless user experience.
As the neobanking market continues to grow, particularly in Europe and the Asia Pacific region, we can expect to see more neobanks following in the footsteps of Klarna, N26, and Revolut, expanding their services and integrating mobile plans into their super apps. This trend towards super apps is set to revolutionize the mobile banking landscape, offering users a more convenient, integrated, and personalized experience.
[1] "Neobanking Market to 2027 - Global Analysis and Forecasts by Service, Business Model, and Geography" - Allied Market Research [2] "The State of Neobanks 2021" - Merchant Machine [4] "The Future of Neobanks: A Comprehensive Guide" - Fintech News [4] "The Neobank Revolution: How Disruptors are Changing the Banking Landscape" - Forbes
- Neobanks like N26, Revolut, and Klarna are not only integrating advanced features into their mobile apps but also exploring the addition of mobile plan offerings, following the lead set by Klarna with its $40 per month unlimited data, calls, and SMS plan.
- As the neobanking market evolves, we may witness more financial institutions, such as N26, Revolut, and Klarna, expanding their services and offering mobile plans within their super apps to attract and retain customers, revolutionizing the mobile banking landscape.
