Neobanks Outpacing Legacy Banks in European App Adoption #
Neobanks are winning the race against traditional banks in the adoption of super apps and banking apps in Europe, according to a new report by App Radar.
The study examined the adoption of banking apps among European customers and found that neobanks have made the biggest gains in 2022. The report analysed the Google Play Store downloads and found that Atom Bank has seen app downloads increase by 101%, Viva Wallet by 54%, Tandem Bank by 53%, Monzo by 49%, Revolut by 31% and Metro Bank by 28%. Meanwhile, European and UK legacy banking apps were down by 1.5% in the Google Play Store in 2022 compared to 2021. However, UK legacy banks added 10% more Android users in 2022 compared to 2021, while their European counterparts decreased by 8%. Despite having a smaller market share, neobanks have made significant advances, showing that competition is increasing, even though legacy banks may still have a larger general market share.
Silvio Peruci, the Managing Director of App Radar, said that the fintech banking sector has continued its upward march, and neobanks have made the biggest advances, especially when considering percentage growth with an 11% increase on 2021. He added that even though legacy banks may still have a larger general market share than neobanks, the gap is decreasing, and competition is increasing. UK legacy banks' gains are smaller when looking at percentage growth. However, none of those legacy banks analysed experienced a decrease, which points to the fact that they are steadily adding new younger customers or converting existing customers to mobile banking.
Furthermore, the report revealed that app downloads for Android banking apps have increased by 5% in 2022 when compared to 2021. Revolut has increased its user base the most with 8.5 million downloads in 2022, followed by Credit Agricole with 1.6 million, Monzo Bank with 1.5 million, Santander with 1.4 million, and Intesa Sanpaolo with 1.2 million. The report indicates that with the ongoing cost of living crisis, both sides of the market will have to focus on their user acquisition strategy. With more choices available than ever for consumers, companies will have to fight for new users with innovative functionality and smart marketing techniques to attract and retain users.