The lines between digital, mobile, technology and apps are blurring in today’s world. We at Robosoft are keen followers of developments in this arena. Here’s a quick summary of what’s buzzing:
Global App Economy expected to reach $6.3 trillion by 2021
According to a report by App Annie, global app economy is expected to reach $6.3 Trillion by 2021 from $1.3 Trillion billion in 2016. The report examined three major types of monetization models: mobile app stores, in-app advertising and mobile commerce.
The report further notes that the device user base will nearly double by 2021 and the time spent on apps will jump to 3.5 Trillion hours from 1.6 Trillion hours in 2016.
Image Source: App Annie
The report also points out that the major driving force behind the boost of app economy is going to be Mobile Commerce, which is set to outpace other monetisation models with a growth rate of 38% CAGR.
It is clear that we are moving from a digital first to a mobile only world. Fuelled by increasing penetration of smartphones, higher speeds of mobile data, and unlimited storage space on devices this transition is dawning upon us faster than expected. While B2C enterprises have gauged this change and have responded to the changing needs of consumers, the B2B sector has been rather slow in adopting mobility solutions. According to a survey from Gartner, more than a quarter of enterprises globally have not built, customised or virtualized any mobile apps over the last year
With App economy showing prolific growth, mobile apps are set to become an integral part of businesses. While B2C enterprises need to keep updating their mobility solutions owing to the dynamic nature of consumer behaviour, B2B enterprises will have to pick up the pace and develop mobility solutions to get the most out of the growing demand for apps.
Google opens its virtual reality advertising tool to developers for an early trial
Google is testing its first VR ad system called Advr. Google’s Advr is a Unity plug-in resembling a small cube including corporate logos. On clicking the cube or by viewing it for a stipulated time the user can trigger the cube to open up a small screen to play the video ad. Advr can operate across mobile-based virtual reality systems, including Google Cardboard, Google Daydream, and Samsung’s Gear VR headset.
Commenting on the launch of Advr the company stated, “Our work focuses on a few key principles – VR ad formats should be easy for developers to implement, native to VR, flexible enough to customise, and useful and non-intrusive for users.”
According to a recent report released by IDC (International Data Corporation), virtual reality (VR) headset shipments grew by 78% (38,400) YoY in Q1 of 2017. As the format gains more popularity, Google is gearing up to monetise the platform through ad revenues. Additionally, the company is also encouraging content creators to produce more VR content. Recently YouTube released a new video format called VR180, to make it easier for publishers to create VR videos
A massive growth of 356% in usage of banking apps
According to a report by British Bankers Association, between 2012-2017 customers’ usage of banking apps soared by 356% with over 19.6 Million people using a banking app in 2016.
Compared to 2015, there was a 30% and 46% increase in savings management and credit card management through apps respectively. Mortgage and investment management through mobile apps saw a huge jump of 86% in 2016.
According to Eric Leenders, Managing Director, BBA “Customers’ appetite for using technology to manage their money on the move is showing no signs of abating, with banking apps now the principle means by which we access our current accounts. And this doesn’t appear to be a fad with more and more people moving beyond payments, increasingly using apps to access a broader range of banking services, such as savings, credit cards, mortgage and investment accounts.”
Today’s consumers are becoming more pro-technology and preferring to interact with their banks without having to visit the branches; this fact is further reinstated by BBA’s report which forecasts a steep decline in branch visits by customers.
Digitisation is no longer a fad but a necessity for the financial sector to connect with their customers. Financial services like banking, insurance, investment, et.al must rethink their business strategy and make digital transformation an integral part of it.