April 14, 2016
Fintech apps are the financial management tools that are changing the way banks and tax firms do business. And with tax day right around the corner, there is no doubt these apps will see a lot of business in the next few hours. But with popularity comes scrutiny. And if these fintech companies want to keep the gravy train rolling, they are going to need to take a look at a recent study that says their most cost-effective time to engage users is long gone by April.
The mobile app marketing and retargeting service Liftoff recently published a report that covers a wide range of mobile financing behaviors and trends. In the report, they explain that mobile finance users are typically purchasing theses services during hot summer months rather than dreary winter months. It found that because of back-to-school shopping, summer vacations and other high price purchases typically made in the summer, finances were on the mind when the sun was out.
While services were typically purchased in summer months, the report did find that fintech app installations did peak in January and February. In fact, the two months combined for 56 percent of all fintech app installations during the year, meaning that the way consumers think about money continues to be two-fold: what they want to spend (summer expenditures) and what they need to spend (taxes).
This means that, while tax season is supplementing this progress, it’s not the only reason for the growth of these companies. In addition to tax services, most fintech apps are able to manage your credit score, create a budget, protect yourself against fraud, make payments and manage your investment portfolio. Some apps even provide peer-to-peer money sharing services as well as digital wallets, mobile payment systems and a wide variety of lender services.
Other significant findings from the study included an odd trend in gender diversity. While 3 percent more women installed the app than men, women purchased 11 percent fewer services on the apps than men did. Which implies that women are ambitious about their financial situation but are either less trusting or less comfortable at making purchases than their male counterparts.
With more than enough controversy permeating the financial industry, it is no surprise that these fintech apps are gaining popularity. While banks have failed to meet the needs of their patrons, these fintech apps have met the call to action with innovation and drive. And it has the big guys a little bit scared.
“Silicon Valley is coming. There are hundreds of startups with a lot of brains and money working on various alternatives to traditional banking,” said Jamie Dimon, the Chairman and Chief Executive Officer of JPMorgan Chase & Co.
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