Lifestyle banking, pay and get rewarded, one-stop-shop, all-in-one super app, your lifestyle app, etc.
A lot of nice phrases we hear these days, that might sound like some marketing taglines to sell us something, but are they really just selling quotes!?
Same as our previous blog, Nexta will try to take you on a journey of discovering the world of lifestyle banking, bringing to you its latest trends, its history, and everything in between. So, make sure to subscribe to our newsletter to receive our blogs on time.
Before we dig deeper to figure out an answer, let me tell you a short story. The first ride-hailing app I ever used was in Asia, it was called MyTeksi (My Taxi in Bahasa Melayu) and it was super convenient for me, you just pin your location and choose the type of car and that’s it. Fast, affordable, and easy to use making my day-to-day transportation easier. Later MyTeksi rebranded itself to Grab and started offering more features over time from the rewards program, food delivery services, documents delivery, flight tickets and travel insurance, online payments, and gift cards to insurance and financing (digital banking).
The app literally provides most of what we all need daily, making it a regularly visited app on your device and the more you use the app the more your experience gets personalised, really matching your lifestyle.
Most of us want easy, effortless, and better control over our finances, and above more, we would love it if it also combined with our other activities. With the rise of super apps, digital banks, and even digital apps of traditional banking, the phrase lifestyle banking arose; meaning to be present in people’s lives and bonding all services to their daily habits. It’s no longer about earning more money from customers; it’s about earning their time. Time is a limited resource and seizing people’s time means earning their interest and trust which will lead to an increase in revenue.
Banks and Fintech companies have realised that ‘time’ fact, so they put a lot of focus on their customers' journeys beyond just acquiring and getting them to take action but the overall journey. With such focus, banks and Fintech companies can have better insights into the motivations and preferences that “each” customer has during the journey, making it easier to understand the customer’s problems and lifestyle and convert this understanding to introducing new features and services reaching what we all name “personalisation”.
Let us use the same example of Grab, besides offering everything that most of its customers need daily, it even did the same with its drivers and restaurant owners, when Grab started working, it found that 6 out of 10 people across the region it serves are underserved by banks. Grab then decided to provide more financial features to serve that underserved sector. Drivers now with Grab can sign up for their accounts, get loans for their cars and pay it in small instalments with every ride they make. Same thing with Grab food and restaurant owners who can apply for loans and pay them from their daily earnings. That’s how Grab super app managed to exist in each of its customers’ daily actions.
Since most customers nowadays expect personalised and outstanding experiences whether from their day-to-day apps or from their banking apps, lifestyle banking is a real trend that super apps, banks, and fintech companies aim to provide.