There has been an ongoing debate for quite some time about which is better: bank apps or fintech apps. Many individuals have voiced their opinions on this matter. Do we really need this myriad of fintech apps? Aren’t bank apps sufficient?
This discussion peaked earlier this year, during the naira scarcity. It seemed as though our traditional bank apps were ill-prepared for the situation’s intensity. While not all bank apps malfunctioned during that time, some fintech apps came to customers’ rescue.
In 2021, Technext reported that the fintech app installation saw an impressive growth of 160% from the numbers in the second quarter of 2020. A breakdown showed that loan apps were the highest at 43.3%. Financial services followed at 35.6% while investment apps saw just 20.3% growth.
After conducting thorough research, we discovered an interesting trend regarding financial apps available on the Apple Store. The top 5 apps in the finance category, all belonged to fintech companies, while the first app belonging to a traditional bank appeared at number 14.
This indicates that fintech apps dominate the download charts in this particular category. A similar scenario unfolds on the PlayStore, where fintech apps also claim the top spots in the finance list.
However, our investigation didn’t stop at scrutinizing the stores of mobile devices. We engaged with numerous individuals who have experience using various financial apps, including both banking and fintech apps.
Out of 30 individuals asked, 63.33% are in support of fintech apps while 36.67% still prefer banking apps.
Interestingly, the banks that emerged as the preferred choice for these individuals were not the most popular on the app stores. It seems that personal preference and satisfaction played a significant role in their selection process, bypassing the popularity rankings.
For point-of-sale (POS) agents and other business personnel like traders and even ride-hailing drivers, many of these individuals consistently lean towards fintech apps as their preferred tools for their daily operations, regardless of the availability or popularity of banking apps.
E-Smart, a POS agent told Technext that “I don’t even trust POS that have bank logos on them. I prefer to stick with the other ones because everything goes smoothly in no time because this is business. Although I have my bank app for personal use, I have their time when things go south”.
Nicholas, a ride-hailing driver also said “I use only fintech apps for my business because I don’t have that time to wait for confirmation, alert, transaction successful. It delays my productivity. With (a fintech app mentioned), I get the credit alert even before you are debited”
A grocer (foodstuff seller) also commented when asked by a Technext staff saying, “Na my pikin say make I dey use this one (a fintech app). I never get any bank app for my life na that time wey naira scarce, he open this one for me and e dey very easy to use but I still dey learn”.