By: Robert Wildner – CEO AVOW
Fintech app industry in Indonesia is a rapidly developing sector with a large potential for growth due to the country’s huge and increasing population, low financial inclusion rate, and rising internet penetration. Indonesia has seen a surge in the number of fintech start-ups in 2022 that are seeking to serve the country’s unbanked and underserved population by providing financial services through digital channels. This has led to the development of a wide range of fintech products and services, including digital payments, peer-to-peer lending, and insurance technology.
Some of these leading fintech companies in Indonesia like Go-Jek, Ovo, and DANA, have grown rapidly in recent years due to their innovative financial services and partnerships with traditional financial institutions. Go-Jek, for instance, is a leading ride-hailing service provider that has expanded its services to include a digital wallet, payment gateway, and money transfer services. Ovo is another digital wallet quickly gaining popularity among Indonesian consumers, with over 100 million users. DANA is Indonesia’s first digital wallet to offer e-commerce transactions and money transfers.
According to a Google, Temasek, and Bain & Company report, South East Asia’s internet economy has the potential to reach US $ 1 trillion by 2030. The growth of the fintech sector is expected to be a key contributor to this growth, with an increasing number of consumers and businesses turning to digital financial services to meet their needs. In the first three quarters of 2022, the total investment in the Indonesian fintech market reached $ 2.1 billion, a steep increase from the previous year.
Taking the market trends for 2023 into consideration, app advertisers can clearly bet on the growth of fintech services in Indonesia across verticals such as digital payment services, crypto trading, Buy Now Pay Later (short-term financing), lending, and personal finance apps. The Neobanking segment is also expected to project a huge revenue growth of 33.4% by 2024.
Investing in mobile OEM alternative app stores has helped fintech apps like Kredivo, AstraPay, and MauCash unlock newer audiences, hence adding to a more profitable revenue stream. This year, the trends will undoubtedly continue to attract more and more fintech companies to dive fiercely into app marketing and make way for value creation for their users.
App marketing through major Android mobile OEMs, such as Xiaomi, Oppo, and Vivo, has created incremental value for fintech apps in Indonesia by offering app marketers a new channel to discover and download apps through alternative app stores. These app stores are pre-installed and placed on top of the Google Play Store on all new Android smartphone devices and cover nearly 70-80% of the total Android market share in South East Asia. This trend is set to go upward in the year 2023.
Acquiring Users through Mobile OEMs: Fintech’s Next Frontier
- Fintech companies in Indonesia can benefit from using mobile OEMs as a strategic user acquisition channel. This includes running on-device ads, display ads, and even having their apps preinstalled on smartphones like Vivo, Oppo and Xiaomi,.
- Mobile OEMs provide a transparent inventory source with a fraud-proof ecosystem and allow fintech advertisers to reach potential customers at various touchpoints.
- With the help of appographic targeting and customized push notifications, fintech apps can target specific locations and high-value users. Appographic Targeting helps promote apps to users with similar interests beyond category and ownership to elevate app install rates.
- Additionally, fintech apps can use retargeting capabilities with mobile OEM advertising and benefit from varied ad formats, such as video ads, rewarded ads, and native ads.
- To fulfill the complete performance analysis, fintech marketers can use MMPs like Adjust, Appsflyer, Branch or Singular to track UA campaign activity and understand the user journey upon the basis of which they can make decisions on campaign optimization goals.
In conclusion, the growth of fintech apps is expected to continue in the year 2023 and beyond, and mobile OEM marketing is going to play a very significant role in scaling user acquisition goals for fintech app advertisers and marketers.