DECTA’s’ recent study on digital banking highlights the issue of forced fragmentation among users.
According to DECTA’s latest research, a significant percentage—91%—of customers expressed their willingness to consolidate their finances into one app if it fulfilled all their needs. However, this consolidation is often hindered by feature gaps in their existing platforms.
The study, based on extensive survey data from over 1500 users across the UK and Europe, as well as an analysis of more than 50,000 app reviews, indicates that having multiple financial apps is primarily a necessity rather than a choice. Many users add secondary finance apps specifically because their primary platform lacks essential features.
Drivers of Multi-App Adoption
The primary drivers identified by the study include missing features such as security, integration, and budgeting tools, each cited by over 45% of users. Additionally, nearly half of customers who use multiple apps note that budgeting and spending analysis features are lacking in their main app.
Necessity Over Preference
The research challenges the assumption that multi-app usage is a matter of consumer preference. In reality, only 2% prefer maintaining several apps by choice. Most users who rely on multiple solutions do so reluctantly due to incomplete feature sets in their primary app.
User Demographics and App Usage
Advanced tech users are generally the most satisfied with single-app solutions, reporting a high satisfaction rate of 85%. However, intermediate tech users typically employ an average of two apps (2.1 per person), while basic tech users stick to simpler setups using only one app on average.
Frustrations and Challenges
Despite the proliferation of finance apps, a significant number of negative reviews point to issues like poor customer support, account freezes, or verification problems. Additionally, 54% of major digital bank reviews reflect negative experiences. The research further reveals that multi-app usage creates considerable friction in daily financial management, with over 80% of users occasionally experiencing confusion about where key information is stored across different platforms.
Key Features Users Seek
The findings suggest substantial opportunities for financial service providers to capture market share by addressing the current feature gaps. In-demand missing features include integration capabilities (60% of advanced users), improved security tools (over 50% across all user types), comprehensive budgeting and analytics, as well as optimized rewards and cashback programs, reliable customer support, and account stability.