Source: This insight is sourced from a panel of 13 financial institutions consisting of more than 400,000 account holders and over 200 million transactions. Found within the data panel was paid subscriptions for a sampling of personal finance budgeting apps.
What we’re seeing: Consumers are responding to new personal finance management (PFM) apps in the market that are designed to help them save money and manage finances. Paid subscriptions to these apps roughly doubled in both 2021 and 2022, meaning the market is approximately four times what it was just two years ago. Alkami also examined the retention rate of these app users: 44 percent of app users were still paying for access to their app(s) of choice 12 months after they had initially subscribed.
Takeaway & Call to action for FIs: Financial institutions should be using insights within their ecosystem to identify rates of fintech app usage. High rates of usage of particular apps could signify that your account holders are highly-savvy and seeking newer personal financial management user experiences and products. Financial institutions may have a natural advantage in retaining users because account holders are unlikely to turn over as fast as app users. However, staying aware of your account holder’s interest in trending financial service offerings can support your future growth plans and prevent attrition from those who don’t want to be left behind.
Additional Reading:
The Financial Brand – July 2023: “Why Banks Can’t Underestimate Consumers’ Growing Comfort with Fintechs”
Cornerstone’s Ron Shevlin for Forbes – July 2023: “The Checking Account War Is Over (And The Fintechs Have Won)”
