![The growth of Super Apps might invite newer threats to banking customers The growth of Super Apps might invite newer threats to banking customers](https://varindia.com/public/index.php/storage/news/uploads/2018/02/628f1f2d2589e.jpg)
Many of you must not be aware of the so called Superapp or Super Applications. The super-app is an omnichannel digital platform, the mobile or web application that can provide multiple services including payment and financial transaction processing, effectively becoming an all-encompassing self-contained commerce and communication online platform that embraces many aspects of personal and commercial life.
Simply, it is a platform developed by a company offering various services under one umbrella. It usually involves a marketplace of third-party offerings fully integrated into the ecosystem and makes use of vast amounts of data to engage with users and offer a wide variety of experiences and services. India has already become a market where a majority of those experiencing the internet for the first time are doing so on their mobile phones.
This is one of the main reasons why Indian companies are looking at building super apps. Customers can shop, book flight tickets, hotel accommodations and more using this app. The e-commerce application is expected to face stiff competition from Amazon, Flipkart and JioMart. According to a KPMG report, super-apps or conglomerated apps are having a disruptive influence on the banking and financial sector. Multiple banking apps mean that users have to manage with many login credentials and payment options, which turn out to be cumbersome.
Tata Neu super app is going to challenge Flipkart, JioMart and Amazon. Reliance Industries, under its Jio umbrella, has consolidated various services and offerings such as shopping, content streaming, groceries, payments, cloud storage services, ticket bookings etc.
Further, Alibaba Group investee super-app Paytm started as an e-wallet and now offers a gamut of additional services such as mobile payments, eCommerce, insurance, movie tickets, digital gold, and so on. Flipkart Group owned payments app PhonePe has tied up with companies such as Ola Cabs, Swiggy, Grofers, AJio, Decathlon, Delhi Metro, booking.com, etc to offer these services from within its own app.
Since, super-apps are creating a huge shift in customer loyalty, they also pose a risk of gaining leverage over the financial service provider in terms of service listing and payments. Super apps will enable a rich flow of information between entities using open data architecture, APIs for third-party Integrations, and enhanced CX-based offerings.
The positive side of the coin is as super-apps rely on the effective use of the free flow of information, banks can also compete with them by adopting APIs and Open Data Architecture or ODAs. Further, banks need to focus their efforts on data management with the help of technologies such as data analytics, AI, and machine learning. This can help in unlocking the true value of the collected data and improve user experiences.
Most of the mini-applications inside the Super App are developed through integrations with companies that intend to do business with a large user base. Super Apps have a platform-based approach to product scaling and create space for integration.
Experts see this as a growing risk with the Superapp, as Personalisation involves taking customer data and figuring out how to provide the best experience possible to specific audience segments in real-time. Here we are talking about Hyper personalisation to bring threat to personal data Security. The challenge is, if these repositories are compromised, all user inputs and outputs could be compromised. Attackers can easily obtain the personal data of users—transaction histories, contacts, payment card details, contacts, favourite locations, and much more.
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